Agriculture linkages to the oil and gas sector in Uganda

Uganda is in advanced stages of developing its oil sector. Key investments are expected in not only production, but also in the related infrastructure namely 12 tarmacked roads covering over 500km; an International Airport in Hoima; oil-related industrial park; Central Processing Facilities (CPFs); crude oil and petroleum products storage facilities and transmission hubs; and logistics warehousing and offices.

Estimates suggest that such investment are over US$ 10 billion in the medium term. In addition, it is projected that intensification of the various investment and development activities will attract close to one million people to the Oil & Gas and pipeline Regions; and that this, in turn, will create huge demand and market opportunities for food products in the oil regions and beyond. Therefore, the various O&G developments have the potentials to unlock strong linkages with and stimulus to the country’s agriculture sector.

Agriculture plays a dominant role in the livelihoods of most Ugandans. More than two-thirds of Uganda’s population is engaged in the agricultural sector and the sector contributes about 24% of the country’s Gross Domestic Product (GDP). In addition, agricultural products account for a significant portion of Uganda’s foreign exchange earnings, and these products contribute the largest share (71%) of merchandise exports.

Therefore, it’s imperative that Uganda urgently formulates and implements interventions to harness and strengthen vital linkages between agriculture and the O&G sector. Importantly, however, whereas requisite interventions must be informed by concrete evidence, systematic studies have not been carried out to evaluate and define the interlinkages between Uganda’s O&G and agriculture sectors. This gap requires that pertinent studies are undertaken to explore the various linkages between the two sectors, and to evaluate how these linkages can and should be harnessed in the short, medium and long-term periods.

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Agriculture linkages oil and gas Uganda Petroleum Authority of Uganda