The East African countries have in the recent years intensified exploration activities that have led to the discovery of significant natural resource deposits, mainly in oil and gas.  It is widely expected that oil and gas production and related activities shall offer East African countries a unique opportunity to transform the structures of their economies from peasant agrarian systems to more diversified industrial economies, through public investments that target productive sectors, accelerate growth and reduce poverty.

The oil and gas sectors are however, capital intensive enclave economic activities that do not have much interconnectedness with the rest of the economy.  One of the ways through which sustainable linkages can be created is through the promotion of local content policies that enable the indigenous private sector to engage in the supply of goods and services demanded in the development of the oil and gas sectors.  However there is great uncertainty about the economic impact of these policies and the proper way to develop and implement them.

It is against this backdrop, that the Economic Policy Research Centre has partnered with the King Abdullah Petroleum Studies and Research Centre (KAPSARC) to conduct a nationally representative survey of enterprises that have the potential to participate in the emerging oil and gas sector in Uganda. The research will examine the implications of national content policies for the oil and gas industry in Uganda as well as conduct an ex-ante modelling of the oil sector in Uganda. The research will be undertaken with full accreditation and support from the Petroleum Exploration and Production Directorate (PEPD) and the Private Sector Foundation Uganda (PSFU).

The insights from this survey will support policy analysis of local content regulations and serve as a basis for critical dialogue with policymakers overseeing the development of the energy sector.  To achieve these goals and outcomes, the project is framed around three main targets:

1. Building the evidence base on the potential of the Ugandan Private Sector to supply local content in the Oil and Gas sectors. It is envisaged that the findings from the study will enrich and support ongoing discussions on building local content policies, regulations and frameworks in Uganda.
2. Establishing a constructive dialogue amongst policymakers, private sector, and civil society groups. EPRC and KAPSARC will use the study findings to initiate dialogue between groups on natural resource management, local content, and economic empowerment.
3. Providing policy recommendations and tools that are developed through a participatory, inclusive approach. The study will provide informed policy recommendations that address the concerns of a wide range of actors, and offer tools to policymakers and members of the private sector on how to deepen local content along the entire oil and gas value chain.

So far, over 20 enumerators have been trained and the survey of enterprises in Kampala, Wakiso and Mukono districts commenced. The fieldwork and data entry is expected to be completed by end of June 2016.