STATE OF NATIONAL CONTENT DEVELOPMENT IN UGANDA AND OPPORTUNITIES FOR REGIONAL INTEGRATION
PENINAH AHEEBWA DIRECTOR TECHNICAL SUPPORT SERVICES
❖ Introduction
❖ State of National Content in Uganda ❖ Opportunities for Regional Integration
INTRODUCTION: UGANDA’S ECONOMY UGANDA'S GDP AND GROWTH RATE OVER TIME 35.00
6.2
34.00
24%
GDP (US$ BILLION)
33.00 47%
5.2
6.5
7
6 4.8
32.00
5 3.9
31.00
4
30.00
3
29.00
2
28.00 29%
26.00 Agriculture, forestry and fishing
3
Industry
1
27.00
Services
www.energyandminerals.go.ug
32.13
28.96
30.74
32.78
34.24
2014/15
2015/16
2016/17
2017/18
2018/19
GDP (US $ Billion)
Constant price growth rates (%)
0
% GROWTH RATE
UGANDA'S GDP PER SECTOR AS AT 2018/19
INTRODUCTION: RESOURCES AND LICENSING
4
www.energyandminerals.go.ug
INTRODUCTION: PROJECTS
5
Investment of US$ 8 to US $ 10 billion www.energyandminerals.go.ug
INTRODUCTION: PROJECTS
6
Investment www.energyandminerals.go.ug of US $ 7 to US $ 10 billion
National Content Regulatory Framework National Content Study, 2011
▪ Opportunities and challenges for Ugandans’ participation in oil and gas projects. Industry Baseline Survey, 2013 ▪ Undertaken by Oil companies to assess local capacity to supply the oil and gas industry with skills, goods and services Capacity Needs Analysis / Workforce Skills Devt Strategy and Plan, 2014
▪ Estimated labor market needs and the gaps in the oil and gas and related sectors over the next ten years (2015 to 2025).
➢ Local Content Policy 2019 ➢ The Petroleum (Exploration, Development and Production) Act, 2013 ➢ Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013 ➢ The Petroleum (Exploration, Development and Production) Regulations 2016 ➢ The Petroleum (Refining, Conversion, Transmission and Midstream Storage) Regulations 2016 ➢ The Petroleum (Exploration, Development and Production) (National Content) Regulations 2016 ➢ The Petroleum (Refining, Conversion, Transmission and Midstream Storage) (National Content) Regulations, 2016. ➢ Local Content Law 2020
National Content Definition Goal To achieve in-country value creation and retention whilst ensuring competitiveness, efficiency and effectiveness.
Employment of Ugandan citizens
Transfer of knowledge and technology
Capacity building Key pillars
▪ To move forward the country’s commercial interest. ▪ Create Joint Ventures across the petroleum value chain
Use of locally produced goods and services
Enterprise development
Regulatory support to National Content development
Supply Base Development Utilization of goods and services produced and available in the country Cummulative Investment USD
3500
Cum National Content spent
3000
2781 2415
2500
1826
2000 1394
1500 1074
1000 500
776
510
652.95
45.22
0
2008 700 600
➢ Value retention in the country USD 900M (2012 – 2017) ➢ Out of the USD 43.5m spent on contracts in 2018, 63.6%(USD27.7m) were contracts signed with Ugandan companies both locally and foreign owned.
2973
3318
3084
500
2009
119.72
2010
193.32
2011
340.2
2012
Total Annual Investments (Million USD)
722.07
760.92
909.24
499.23
2013
2014
2015
2016
2017
Total Annual National Content (Miillion USD) 589
510 432
400 266
300
298
366
320
200
146.88
100
45.22
74.5
159.03
153.72
73.6
234
192
69.12
111 38.85
148.32
0 2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Upcoming Skills Development Hub Oil and Gas Trainers Association of Uganda ❑ Over 4000 people have been trained and internationally certified in the different skills required by the sector ❑ Domiciliation of international certification so far we have centers for City and Guilds, Opito, ECTIB ❑ Well equipped VTIs, UPIK etc
Up Coming Skills Development Hub
Social investmen t
Opportunities for Regional Integration ▪ Participation in the projects in Uganda; upstream field development, EACOP and Refinery through JVs ▪ Partnerships with the UNOC ▪ Ongoing licensing rounds ▪ Regional access to opportunities in the Mozambique LNG ▪ Regional access to opportunities in the projects in South Sudan ▪ Leveraging on Uganda’s national content tools like the NSD and NOGTR ▪ Establishment of regional hubs for skills development through partnerships and facilitating trainee attachments to ongoing projects in the region
CONCLUSION Regional integration is the way to go for effective national content development to leverage on the capacity already built in the region.