Page 22 - EPSI Magazine Issue 8 final 2018.indd
P. 22
19
Additional revenue streams include income tax, numerous benefits of something we are fully yet
withholding tax, Pay as You Earn, Value Added Tax, Im- to grasp. As if that is not bad enough, Most Ugan-
port Duty, Stamp Duty and Service Tax, among oth- dan companies lack the skills, the capital and the
ers. The Minister of Energy and Mineral Development standards required for many undertakings with-
Irene Muloni has on several occasions been quoted in this sector. They lack the capacity for one very
saying that Uganda will see some tangible outputs of obvious reason. This sector is a GREEN-FIELD; it
the oil by 2020. But we are almost past mid-2018 and is new. We have not extracted oil before and as
there is little progress being seen, then one can only such, to expect Ugandans to be at the level of say
wonder, if our goose will lay golden eggs? Nigeria where they have been drilling for more
than 30 years is most unrealistic.
For one, Uganda is akin to the couple who had
the golden goose, this case being the oil. When oil To further drive the point home, what this oil
was first discovered in early 2007, leaps of joy were sector requires is a myriad of skills which Uganda
heard among Ugandans. Promises of a transforma- does not have. Academic home, Makerere Univer-
tive economy were echoed by leaders, with employ- sity started offering an engineering course in oil
ment avenues and the like. And so many were hope- and petroleum geo-science in 2013 meaning that
ful. Economist after economist narrowed down what its first graduates just came out in January this
the oil sector would bring in for the country in terms year. And with what experience are these young
of revenue and there was some hope. But like the ones expected to take hold of in so demanding
couple who eventually slaughtered the goose and a field? On top of that, companies have had to
found no gold, the opportunities expected from the be out-sourced to actually ensure that the pro-
oil industry are more likely to leave us disillusioned. cess can begin immediately. From Chinese firm
CNOOC to Tullow Oil, all these big firms require
For one, the percentage of Ugandans who actu- highly skilled personnel to run. The oil and gas in-
ally know about how the overall oil and gas sector dustry also requires huge capital investments but
will affect them is very small. This means that even generates relatively few jobs, which is not good
though the sector is bound to be beneficial for many, news for a country with such high birth rates
it is useless for the majority who do not even know and extensive youth unemployment as currently
how helpful it will be for them. It is this very pain- prevail in Uganda. Rural youth will remain at the
ful connection that Sozi Josiah can relate to. A recent end of this short stick. International oil compa-
graduate of Journalism and Communication from nies require specialized skills and high standards.
Makerere University, Sozi believes that the oil dis- A young hopeful from the village with some tal-
covery will have no real contribution to the life of the ent for welding, wiring or mechanics might just
ordinary Ugandans. Citing the rampant unemploy- make it onto an urban building site or workshop
ment rates as well as massive corruption levels, Sozi but would not be allowed anywhere near an oil
believes that the oil will benefit the rich and those in installation. And Uganda has not yet made much
power. progress in training programs to equip young-
sters with the skills they would need to work in
Secondly, the nation has not undertaken this the oil industry. Adding onto our recent gradu-
venture before. Whereas experience happens to ates, they first need additional, hands-on training
be the best teacher, when all eyes are upon you, overseas before they can even join this task force.
the pressure is high to ensure that not only is the More accessible job opportunities are likelier to
best produced but room for error is rarely tolerat- appear in construction, ancillary and service in-
ed. Uganda has never dealt with a resource of such dustries in towns such as Hoima and Masindi,
magnitude. Not only are big key players interested which are already experiencing an oil-driven de-
in this venture but the oil can potentially transform velopment boom. Government infrastructure
our dying economy. Numerous investors can help projects would also create jobs, but the bigger
build this sector if well managed. But unfortunately question lies in how much of this would actually
for us, like the greedy owners of the golden goose, be tangible?
our hands are outstretched and ready to receive the
