Issued by: Petroleum Authority of Uganda
In a key marker for the sustainability of the East African Crude Oil Pipeline project, more than 100 micro, small, and medium enterprises (MSMEs), selected from the ten districts through which the pipeline passes cemented their role through a memorandum of understanding with large and medium-sized partners.
This collaboration is the result of a concerted effort led by the Petroleum Authority of Uganda in conjuction with the African Development Bank and the Uganda government.
This success can be attributed to the PAU’s commitment to empowering MSMEs operating along the EACOP project corridor. To get the initiative off the ground, the government secured a $500,000 grant from the African Development Bank.
In a recent speech (read for him) in Entebbe, Ernest Rubondo, executive director of the Petroleum Authority, underlined the project’s overarching objective. It aims to support small and medium enterprises along the pipeline to develop capacity, and also provide access to new market opportunities through business linkages such as those the MoU seeks to create.
“Today, we witness the signing of the MOUs between some of the medium and large enterprises which will enable the medium-sized companies to offer goods and services to the large companies while learning how to tap into the various oil and gas opportunities,” Mr Rubondo said.
Launched in Mubende District in January 2021, the project trained over 400 SMEs in the EACOP districts, including 137 led by women and youth. It also exceeded its targets by signing 158 MoUs against an initial expectation of 70.
Reverend Enock Kasirabo Mushaija, director of Kisirabo Holdings and a beneficiary of the business linkages training program in Mubende district, emphasised the need for sustainability of the project to benefit more youth and women.
Michael Otonga, the director of finance and corporate services at PAU, confirmed that efforts are underway to secure further support from the government and development partners to ensure the continuity of the project. He stressed the importance of maintaining high quality, quantity, and consistency in project activities.
The signing of these MoUs marks a positive turning point for the East African oil and gas industry, and signals a growing recognition of the pivotal role MSMEs play in industry development. With the continued support of the AfDB and the Government of Uganda, capacity building and business linkages initiatives will reach even more MSMEs.
In summary, the MoUs represent a significant step towards building a sustainable oil and gas industry in East Africa. It is expected that more MSMEs will join these efforts and further contribute to economic growth and development. PAU and its stakeholders remain committed to empowering local entrepreneurs and ensuring their full participation in the oil and gas sector.
