Recently, 2.5 million barrels of oil were discovered
in the Albertine Graben in western Uganda.
Today, it is estimated that Uganda will be able to support production of
over 100,000 barrels of oil per day for 20 years.
For ordinary Ugandans, this news has been welcomed
with two distinctive forms; the positive and the negative. In the case of oil discovery, the positive
expectations are truly hopes that the valued resource and the associated
revenues will deliver substantial social, economic and infrastructural
improvements, whilst liberating Ugandans from poverty by boosting economic
growth.
Negative expectations also exist since resource
abundance is considered a “curse.” While oil discovery presents considerable
opportunities, it also carries a risk commonly known as the natural resource curse - a situation where abundance of
tradable natural resources such as oil ironically leads to economic stagnation, the death of other traditional and non-traditional exports such as agricultural and manufactured products, and conflicts over the allocation of resources.
tradable natural resources such as oil ironically leads to economic stagnation, the death of other traditional and non-traditional exports such as agricultural and manufactured products, and conflicts over the allocation of resources.
This has been witnessed by some African countries for
instance Nigeria – which pumped her first barrels of oil in the early 50s and
has since set world records in corruption; and Angola, whose story is just as
sad! Despite the huge revenue generated
from oil, 70% of Angolans live below the poverty line.
Already, the oil sector in Uganda is toppled with
many corruption scandals; with some leading to the suspension of new deals
between Uganda and foreign oil companies and to the censorship of four
ministers by the 9th Parliament.
This only means that a country like Uganda, which is
new in the oil sector, needs to draw lessons from countries that have a
reputation for better governance and are blessed with favorable fundamentals.
Ghana is one such a country. She produces 120,000
barrels of oil daily, which is close to Uganda’s 100,000. Ghana discovered oil
in 2006 after decades of exploration. To a large extent, she has managed the
sector well.
So, what lessons can Uganda learn from Ghana to
avoid causing the wretchedness associated with corruption, civil and armed
strife, and poverty plus chaos that have left some other African countries
ruined? Here are a few suggestions:
Ensure transparency of revenue and distribution of
allocations; the Ghanaian government has really tried to make public all the
documentation that form part of the oil bidding process. This has made the
political capture of oil rents and general corruption in the sector much
difficult to accomplish.
Institute constitutional governance; the Ugandan
government can learn from Ghana, which has tried to involve every citizen to
make inputs towards the exploitation of the resource to promote good primacy of
the sector.
Invest in the sector; the Ugandan government can institute
policies that position herself as a key stakeholder in the oil sector. Ghana’s
National Petroleum Corporation’s objective is to “become a world class company that partners
with the international petroleum industry to enable Ghana find and develop oil
and gas resources for the benefit of the people of Ghana as well as our
partners who share in the exciting expedition.” This has
ensured that the Ghanaian government not only gets money from its shares in the
oil fields but that it is also fully involved in the oil’s exploration and
drilling.
The Ugandan government should also use the revenues
it gets from oil to fund demonstrable social projects that benefit society;
giving priority to the most under deserved communities that the Ghanaian
government has tried to do. In a recent interview in a local newspaper, Mr. Bob
Ken, a Ghanaian Lawyer, and Governance and Management Analyst noted that
“people’s expectations can be best managed by building infrastructure like
roads, health centers and school and setting up of hi-tech industries to
provide employment opportunities and to improve the standard of living.”
Other lesson that Uganda can learn from Ghana
include;
·
Sensitize masses about the oil sector
since they anticipate some “rapid and unrealistic expectations” in economic
growth like the way it has been done in Ghana to avoid social unrest.
·
Develop methods and policies that
control oil revenues for instance The Petroleum Revenue Management Act (PRMA) which was passed by
Parliament and assented to by the President of the Republic of Ghana in April
2011 to avoid mismanagement of public funds.
Therefore,
although Ghana’s work in managing the oil sector has not enjoyed praises only
but controversies as well, the country has however made the above commendable
efforts which Uganda can learn from.
Sandra
Nassali
Public
Relations & Communications Officer
Action
For Development
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