Image: eagle.co.ug
In efforts to showcase the country’s commitment to accountability and transparency in the oil and gas sector, Uganda has joined the Extractive Industries Transparency Initiative (EITI).
In attracting local and foreign investment into the sector, the lack of transparency in oil and gas contracts has caused public suspicion and raised corruption concerns. As a result, the country has for, for several years been urged by a number of stakeholders to join the initiative.
“The decision to join EITI was informed by the appreciation of the values that EITI promotes with regard to disclosure of information about the whole extractive governance chain,” said Uganda’s Minister for Finance, Matia Kasaija, adding that it will support authorities’ efforts to ensure transparency and tax collection in order to build long-term trust and attract investment.
Joining EITI – a non-obligatory organisation – means the country is required to make all contracts related to its oil and gas sector public, including the allocation and ownership of licenses; contractual, legal and fiscal terms of those contracts; production and exports numbers and revenue; revenue collection; social and economic spending.
Uganda’s oil and gas sector mid-term future is promising with commercial productions to flow in 2020. Total, Tullow Oil and China National Offshore Oil Corporation (CNOOC) – hold nine production licenses and are developing the country’s upstream sector.
Uganda joins Tanzania in the pool of East African countries who are EITI members. Globally, EITI has 51 member countries.
