The green oil field project in Uganda will increase foreign direct investments to the nation by an additional Shs 1.55 trillion, for a total of Shs 5.57 trillion from 2021 to 2022.
- The Shs 23.7 trillion joint venture in the Lake Albert oil field between Ugandan National Oil Company and China National Offshore Oil Corporation (CNOOC) is a major factor in the increase in investment.
Uganda’s Uganda Investment Authority (UIA), which aims to draw Shs 10.93 to 14.57 trillion annually for infrastructure and employment creation, underlines the need for greater investments notwithstanding the expansion of FDI to satisfy urgent development objectives.
The entire amount invested in Uganda’s green oil field project between 2021 and 2022 was Shs 5.57 trillion, or an additional Shs 1.55 trillion in foreign direct investments. To put things in perspective, Uganda’s FDI climbed from Shs 2.93 trillion in 2017 to Shs 5.57 trillion at the moment.
The East African subcontinent’s Shs 1.55 trillion was the greatest amount ever recorded, according to the United Nations Conference on Trade and Development (UNCTAD), during the time period under consideration.
According to Mr. Angelo Izama, director of domestic participation for the UIA, “We need an infusion of about Shs 10.93 trillion to Shs 14.57 trillion every year to catch up with urgent needs, such as the provision of jobs and infrastructure development.”
According to data from the UIA’s December 2022 memo, FDI primarily aids in the manufacturing sector in providing jobs for Ugandans. According to Mr. Izama’s evaluation, this has been made worse by the nation’s quest for import substitution, which has been exacerbated by the coronavirus outbreak.