Uganda's oil wealth to drive national empowerment and diversified growth
Michael Atingi-Ego, Governor of the Bank of Uganda, outlined a vision for leveraging the nation's oil wealth to foster inclusive, sustainable, and diversified growth. Speaking at the 6th Annual National Content Conference on December 3, 2025, he emphasized cultivating empowered nationals and enterprises.
From Oil Barrels to National Wealth
Uganda stands at a defining moment, aiming to expand its economy from $50 billion to $500 billion by 2040 through its Tenfold Growth Strategy.
This strategy is anchored in four transformative pillars: Agro-industrialisation, Tourism, Mineral-based Industrial Development (including Oil and Gas), and Science, Technology, and Innovation (ATMS).
These are interconnected engines for inclusive, sustainable, and diversified growth, with oil and gas serving as a crucial catalyst.
While $11 billion has already been invested in the petroleum sector, forming a foundation for infrastructure like roads and industrial parks, the true measure of success lies in converting these resources into productive assets.
The Governor stressed that barrels alone do not build nations; success is measured by empowered Ugandan firms, skilled workers, and resilient communities that endure long after the oil is gone.
Safeguarding Stability, Stewarding Future Wealth
The Bank of Uganda's mandate is to promote price stability and a sound financial system, crucial for Uganda's economic transformation.
The central bank is committed to its medium-term core inflation target of 5%, ensuring the value of savings and wages.
To counter potential "Dutch Disease" effects from oil revenues, the Bank will act to preserve the shilling's real competitiveness.
The Governor highlighted the Bank's dual role: maintaining macroeconomic stability, including a 350 basis point interest rate hike to combat inflation, and stewarding the Petroleum Revenue Investment Reserve (PRIR).
The PRIR is a covenant with the future, ensuring oil revenues are invested wisely to create permanent assets for future generations.
Beyond Compliance, Towards Capability
Uganda's emphasis on national content, moving beyond mere contract participation to capability building, is a crucial strategic shift.
This approach correctly prioritizes long-term asset creation and human capital development over short-term gains from extraction.
However, successful implementation will demand rigorous governance and sustained political will to avoid the pitfalls of resource nationalism.