UGANDA’S OIL OPPORTUNITY: A GREEN LIGHT FOR PROGRESS, OR A RED FLAG FOR THE HYPOCRITES?

By Salim Abila Asuman

In today’s word, oil is often dressed in an outfit of negativity, it is seen as the villain in the tale of environmental degradation and climate change. But what many fail to recognize is the vital role that this remarkable resource has played in shaping our present and propelling us into the future.

From powering innovation and industry to underpinning economic growth and development, oil has been the unsung hero in the history of human civilization. While it might be dressed in the unfashionable outfit of controversy and critique, the truth is that much of what we enjoy today for instance advanced technology, global connectivity, and enhanced living standards owe their existence to this powerful, yet misunderstood substance.

It is time to peel back the layers of misunderstanding and appreciate the essential contributions of China National Offshore Oil Corporation’s (CNOOC) and EACOP’S exploration of oil in Uganda’s oil fields in the Lake Albert region that is estimated to hold over six (6) billion barrels of crude oil

The stance I have taken above stems from a compelling discussion I had with Ogwal Jabez an electronic Engineer. This is what he had to say:

He postulates that an overlooked reality of battery waste might outshine all benefits in going green if we do not find proper methods of disposing of them. This is particularly poignant in the wake of Uganda’s increasing oil potential across areas like the Albertine Graben, Hoima Basin, and other regions estimated to harbor mega reserves, which could turn around Uganda’s economy if properly utilized.

Ogwal insists that underutilized oil wealth in Uganda can spark economic development. “These unused deposits are bound to turn things around for Uganda,” he says. We are already witnessing the economic dividends coming from the sector, with over 14,000 jobs created so far, 90% of which are held by Ugandans.” With an estimated potential boost of $9 billion to Uganda’s economy, the oil industry offers a tangible opportunity for increasing Uganda’s GDP by 22%.

Ogwal argues that against the rising tide of expectations for renewable energy stands the true environmental cost of batteries that would store energy harnessed from the wind and sun. “Everybody wants to go green, but no one is talking about the elephant in the room, which is how to dispose of batteries.” While indeed recyclable, many contain toxic material like cadmium and lead that can leach into the environment. Such substances, if not well handled, according to Ogwal, have the potential for serious health and environmental impact. “Oil spills are terrible, but they don’t continually leak toxins over time the way discarded batteries can,” he says.

More specifically, the issue of battery disposal is at a premium as renewable energy adoption accelerates globally. As good as that may sound, batteries are quite fundamental in storing that energy, but what happens to those batteries at the end of their life? According to Ogwal, “We may be replacing one environmental problem with another.” He colourfully paints a grim prospect of a “battery cemetery” piling up discarded, hazardous materials.

While some are calling for the country to abandon oil, Ogwal presents a “best-of-both-worlds” approach. He says responsible management would allow the coexistence of oil and renewable energy as part of a balanced portfolio in Uganda. “Investment in safe oil exploration could help us meet our economic growth needs while minimizing the chances of a battery-waste crisis,” he says.

Without doubt, the oil exploration projects in Uganda, led by East African Crude Oil Pipeline (EACOP), Total Energies and the CNOOC, have stirred up a storm of criticism from the usual suspect: foreign activists, environmental purists, and countries and countries whose economies were built on oil. They are shouting about environmental dangers, but are we seriously supposed to believe the voices, some of which come from nations that are still pumping oil from every last corner of their boarders?

Let us cut through the noise. Every possible step to safeguard Uganda’s environment has been implemented. CNOOC and EACOP did not jump into this project on a quirk, Environmental Impact Assessments were rigorously conducted, safety protocols are in place and local ecosystems have been factored into each and every decision.

So, what is the real issue here? It seems our path to self-sufficiency just does not sit well with the said critics.

Oil can make the Ugandan economy change. Just imagine new roads, improved hospitals, improved education, and thriving local businesses-just about everything. This is not just an oil issue; this is about the future of Uganda. The revenues from oil will bring jobs and infrastructure that will give our young people a reason to stay, work, and thrive in their communities instead of going off seeking greener pastures. This could mean a self-sustaining Uganda, empowered from our own resources as opposed to perpetual begging from the West.

But maybe that is the problem with some of our critics: a self-sufficient Uganda would mean no more foreign aid, no more foreign influence, and no more foreign “advisors” telling us what we ought to and ought not to do. We would be standing upon our two feet, and perhaps to some, that independence is just not good enough.

Let us not forget that those who would lecture us on the perils of our oil development are not standing in villages lacking paved roads or communities with limited healthcare and educational opportunities. They are observing from comfortable, industrialized countries built on the very same resource they now wish for us to leave in the ground.

So, let us be bold enough to look aside at the hypocrisy, let us seize this opportunity and build the Uganda that we deserve. Oil is not just a resource; it’s an opportunity toward a better future, and Ugandans deserve a chance at prosperity just like any other nation. EACOP and CNOOC are not threats to our environment but pathways to self-sufficiency and success.

The writer is a research fellow at the Development Watch Centre.

 

CCCC’s Environment, social and Governance Report; Tightening the Knot of Uganda-China Economic Cooperation

By Moshi Israel

The China Communications Construction Company officially launched its 2023-24 ESG report on October 17th 2024 at Silver Springs Hotel in Bugolobi. The event was graced by a number of key guests from the corporate world and Governments of both countries. China at the highest level was represented by his Excellency Ambassador Zhang Li Zhong while Uganda was adequately represented by the Minister of Finance, Hon. Matia Kasaija, the Hon. Mwebesa Francis, Minister of Trade, Industry and Cooperatives and the chief guest; Vice President of Uganda her Excellency Jessica Alupo represented by the Hon. Lukia Isanga Nakadama the third Prime Minister and Minister without portfolio of the Government of Uganda.

The report comes at the heel of increased cooperation between Uganda and China that has seen the latter become one of the biggest investors in Uganda’s economic development. Just recently the IMF acknowledged that Uganda’s economy will continue to grow at a high rate and in double digits. This success can be acknowledged by many Ugandans to be in no small part a spillover effect from the numerous investments from China. The CCCC is one of many such companies that have contributed to Uganda’s continued economic success.

In a more specific way, CCCC has its name chiseled in many iconic infrastructure projects in Uganda including the Express high way and its breathtaking Nambigirwa bridge, The Entebbe International Airport, The KBE project in Kampala and many other road networks around the country.

The ESG report is perhaps one of the most important yardsticks to measure a company’s true success. This is because this is where the ethics and moral standing of a company are truly weighed beyond the profit making. CCCC has effectively incorporated Environmental stewardship, Social Responsibility and Governance and ethics at the center of their operations culture. ESG ensures that a company’s activities go beyond profit making and support sustainable development that does not come at the expense of the environment and human rights.

CCCC Uganda currently has 26 ongoing and planned projects valued at $1.7billion. The company operates across numerous sectors and is involved in the construction of highways, bridges, Airports, water supply and factory construction. It has led other companies for four years straight in the Chinese Chamber of Commerce in Uganda. The company is engaged in charitable activities including contributions to SOS orphanages. Additionally, CCCC Uganda has also played a major role in the advancement of Uganda’s education sector where they have signed an MOU with Makerere University and Wuhan City Polytechnic aimed at creating a model school-enterprise cooperation. They also launched the seagull Talent Training project to cultivate ‘internationally minded professionals with specialized skills for Uganda’s future.’

To put the achievements of CCCC Uganda into perspective, one has to point out that the company has completed 16 projects, has accumulated 1000km in construction mileage, has led to an 80%+ portion of Ugandan employees participating in construction whilst creating over 10k jobs. Much has to be done but CCCC is actively on the right track and serves as an example of investment gone right. For many years, developing countries have been faced with a problem of ‘unserious’ investors who are mostly crooks looking for a quick buck. However, the tide is ever so slowly changing and the government is increasingly looking in the right places to find genuine investors with a proper international standing.

Furthermore, what CCCC is doing also reflects well on China as a country and is in line with the 10 Action points emphasized by President Xi Jinping during the Beijing Summit and Ninth Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) held in September. Some of President Xi’s points of emphasis were on Green Development and connectivity. CCCC is actively contributing to these action plans by engaging in construction that is friendly to the environment and building extensive road networks under the umbrella of the Belt and Road Initiative.

Going forward, the Government of Uganda should continue to develop a strategy that increases the trust of international investors in the profitability, stability, security and sustainability of doing business in Uganda. Once the message is out there that Uganda is safe and open for business, more companies like CCCC from all over the world will continue flocking into the country and contributing significantly to its economic growth. Just like CCCC has been a good representative for China, Ugandan citizens and Businesses can be great ambassadors for the country everywhere they go. The ESG report has shown us how much of an impact a foreign company has had on the economic and social progress of our country and now the ball is in our hands.

The Writer is a Senior Research Fellow at Development Watch Center.