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 recognise 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 civilisation. 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 utilised.

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 specialised 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.

European Union a Strategic Partner to Uganda’s transition to Green Energy

By Shemei Ndawula.

For close to four months in 2020, several islands in the Kalangala archipelago were virtually cut off from the rest of the country after weeks of unprecedented rising water levels on Uganda’s largest water body, Lake Victoria to record breaking levels last seen in the 1960’s. For a region that thrives on fishing and tourism, and trying to recover from the worst throes of the COVID19 pandemic and the subsequent economic and social lockdowns, the situation was dire for many residents as it was for many the first time, they unmasked the ugly unforgiving face of climate change. As someone with business interests and close relatives in several of the Ssese islands I could in my interactions with residents of the islands feel the palpable distress of the islanders many of whose lives and livelihood are tethered to the lake as they navigated this largely underreported crisis on the world’s second largest fresh water lake.

Almost two years later, in December 2022 just after the COP27 conference in Egypt, I was glad to see the European Union in Uganda in a move to reaffirm its commitment to helping Uganda transition to green energy launch the Get Access Mini-grid Solar Program; a green energy initiative aimed at providing modern, affordable and clean electricity to over 110,000 people, 800 public institutions which include schools and health Centers and at least 700 businesses in remote rural areas. Even more pleasing was to find the Kalangala archipelago, one of the frontline battlegrounds in the fight to curb climate change included as one of the regions set to benefit from the clean energy initiative worth approximately 35 million Euros (136.2 billion UGX). Coupled with its earlier energy development commitments at the 27th UN Climate Change Conference (COP27) as well as support for the establishment of the loss and damage fund to support vulnerable economies like Uganda in coping with the adverse effects of climate change the European Union’s commitment to aiding the sustainable and affordable energy transition of sub-Saharan Africa is commendable.

Interestingly in its effort to spur the green energy transition the European regional block by implementing the GetAccess Solar Energy program also has the potential to spur the economic development of many untapped or under-utilized sites with great Tourism potential like the Buvuma islands in the east, the shores of Lake Albert in the West and the Kalangala(Ssese) islands spanning the central and southern regions of the country which could spark a blooming green economy based on environmental tourism built around natural sites and resources supported by sustainable energy.

As someone whose childhood bears fond memories of walks through the Kabaka’s  Luggo forest on Buggala island as well as the Equatorial evergreen forests of Bukasa island (Kalangala) I have over recent years watched in utter devastation the trend of deforestation that has seen a rapid shrinking of the green forest cover over the last decade as trees are cut down for wood fuel in the rapidly urbanizing islands of lake Victoria, and this is why the efforts by the European Union and German government to support alternative clean energy programs sparks hope in the possibility of the preservation of the rich biodiversity of both flora and fauna much of which is unique to the islands and an integral part off the cultural heritage of the residents .

The question of climate change and global warming especially in the global south is one that cannot undeniably be ignored, lest it explodes into a full fledged crisis and the 2020 historic rise in water levels on lake Victoria was an important loud and clear call to action and we are glad that development partners like the European Union in Uganda and its member states are heeding that call instituting a Sustainable Development department headed by Ms Nadia Cannata with the sole purpose of catalyzing the Ugandan/African transition to sustainable energy to meet global targets with several awareness campaigns as well as grass-root projects like the GetAccess solar project aimed an the green energy inclusion for hitherto energy deficient parts of the country.

This in lieu with efforts of other development partners like China in the sector of infrastructure development.

The prosperity of Uganda and Africa within the next two decades will largely depend on how well it can assimilate to affordable and sustainable green energy to consolidate current economic interests and with the help of development partners like the European Union and its individual states to achieve the global climate targets established at the COP21 Paris Agreement in 2015.

Shemei Ndawula, is a Research Fellow at the Development Watch Center.

 

China sparking Green Revolution in Uganda with Bamboo.

By Shemei Ndawula.

Bamboo is largely known as an ancient Chinese crop, an aggressive grass identified by its long canes and synonymous with the Chinese pandas (which largely live on bamboo diets). However, in the wake of global warming and the shift to green energy, the plant has seen a rapid increase in value, grossing a global approximate trade of US$25 billion per year.

In the past two decades, Bamboo has spread to several countries across the world as a solution to environmental mismanagement. In Africa, it is used to address the rapidly declining forest cover and desire for a faster growing eco-friendly alternative to wood fuel. In 2012, a US based company developing commercial bamboo plantations – EcoPlanet Bamboo used Bamboo trees in a project restoring 480 hectares of land previously ruined by years of pineapple farming in the Eastern Cape province of South Africa.

In East Africa, Uganda has in recent years made tremendous strides in commercial farming with the aid of developing partners like China. In a country where bamboo has always been synonymous to the mountainous Elgon regions with the Bamasaaba (Bagisu) integrating bamboo shoots into their local delicacy malewa, it comes as no surprise that the crop has been embraced by the wider farming community. I recently had a chat with Mr. Andrew Kalema, a former newsroom journalist and editor of the agricultural magazine Harvest Money who is now fondly referred to as the Father of Bamboo in Uganda and in his view, this is one crop that if well managed can be the solution to most of the country’s energy needs. He explains that when he made his first trip to China in 2011, he was enthralled by what he refers to as Green Gold. “When in China you realize that bamboo is one of the most commercially viable and environmentally sustainable projects for the world to adopt in the wake of global warming because of its fast-growing properties and heightened ability to convert carbon dioxide into oxygen besides its anti-inflammatory abilities,” he says.

This year (2021) marks a whole decade since the trip and there’s been such rapid transformation in the bamboo industry of Uganda with generous contributions from the Peoples Republic of China going towards setting up and maintaining bamboo research units, plantations, technological transfer as well as various trainings done in China and on the continent. Currently, Uganda has an estimated 40,000 to 50,000 hectares of bamboo.

One such research units is the Bamboo project at Uganda Industrial Research institute in Nakawa which I have been fortunate enough to visit. This unit adds value to bamboo biproducts through small scale processing; making crafts, toothpicks, tablemats and furniture. Interestingly they also treat bamboo poles which are used in construction as an alternative to wood. These are elegant, sturdy, pest resistant (which comes in handy for rural projects) and relatively cheaper than most wood species. A casual walk around Kampala would reveal how comfortably this bamboo has been adopted by high-end popular night clubs which makes them look beautiful.

International Bamboo and Rattan Organisation (INBAR)is the Dutch-Sino-East Africa Bamboo development programme once coordinated by Andrew Kalema as a multilateral effort in Uganda, Kenya and Ethiopia, facilitated by Chinese and Dutch expertise in the areas of bamboo Value chain development, product design, marketing and standardization. This would help East African countries to unlock the vast potential of their indigenous bamboo resources in addition to contributing to green economic growth, investment and international trade between Europe, China and East Africa.

More farmers, environmentalists and research agencies within Uganda are investing considerably in bamboo agribusiness, research and value addition to bamboo products. With guidance and assistance from China National Bamboo Research Center (CBRC). Organisations like Uganda Forestry Authority, INBAR, Uganda Bamboo Association, Nature Uganda and even Uganda Prison Services (with an expansive bamboo nursery in Luzira) etc. are teaching farmers how to grow and multiply bamboo.

However, taking an objective look at the history of farming in Uganda, such ‘high potential’ crops have always let the farmers down with the outstanding examples being vanilla and cocoa. The long-awaited vanilla boom that was promised in the 2000s still haunts farmers who cleared large tracts of land to plant vanilla prophesized and championed by many prominent agriculturists; there was a gold rush into the business with hopes of earning lots of profits only for the price of vanilla to suffer a severe drop on the world market leaving them stranded. Could the renowned father of bamboo Mr. Andrew Kalema and his ilk be yet another outcrop of false prophets?

To contrast, bamboo is a fast-growing plant which multiplies fast and has potential to be turned into several byproducts that have large local and international markets. By adding value to the plants, using small scale manufacturing techniques, farmers can produce toothpicks, mats, fertilizers, bamboo vinegar and also treat their own construction poles (bamboo has been shown to have a higher compressive strength than wood, brick, or concrete). In fact, besides the processing ventures bamboo is also used for land demarcation and ornamental landscaping, so, the market for seedlings is currently booming.

However, the huge potential bamboo possesses could also pose a threat when natural forests are cleared to pave way for bamboo plantations. In a country losing an estimated 80,000 hectares of forest cover every year, this could prove disastrous. The solution to this can also be borrowed from the Peoples Republic of China which is the global leader in producing sustainable green energy where farmers practice selective harvesting of trees to maximize output of smaller tracts of land. Eastern Africa is currently on a healthy trajectory by building its capacity and transferring technology to local bamboo producers -including trainings funded by China’s Ministry of Commerce on craft creation, industrial use, furniture and also producing energy by making bamboo briquettes.

Currently, Kenya, Uganda and Ethiopia have got the largest reserves of natural bamboo forests accounting for some 3 to 4 per cent of the global known coverage and with the help of development partners like the Peoples Republic of China and Denmark, this could turn around the livelihoods of thousands of farmers in Africa while most importantly, flattening the curve of climate change.

The author is a research Fellow at Development Watch Centre, a Ugandan based Foreign Policy Think Tank

 

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