Bank of Uganda Governor Dr Michael Atingi-Ego visited the East African Crude Oil Pipeline (EACOP) in Kabaale and Hoima, where he was “very much impressed” with what he learned is one of the most innovative and smart pipelines in the world.

Dr Atingi-Ego wrapped up the day with a tour of the $6 million Luwero Industries Waste Management Facility, a joint venture between Uganda’s National Enterprise Corporation and Chinese company HBP. The facility has treated 70,000 metric tonnes of petroleum waste from the Kingfisher field since its commissioning in 2023.

The $15 billion that has so far been invested in Uganda’s oil and gas sector is the largest concentration of long-term investment this country has ever hosted.

Uganda’s Charter for Fiscal Responsibility 2021-2026 requires that monies generated from oil and gas activities be put into the Petroleum Fund, and from this, only up to 0.8 per cent of the preceding year’s non-oil GDP can be transferred to the Consolidated Fund where it must be spent on infrastructure development and not recurrent expenditure.

The rest (99.2 per cent) of oil revenue is to be transferred to the Petroleum Revenue Investment Reserve (PRIR), which BoU holds on the nation’s behalf and must invest offshore so that oil wealth does not flood the domestic economy and price exporters out of the markets that sustain them. The Petroleum Revenue Investment Reserve will ensure that Uganda’s future generations continue to benefit from oil long after most of it has been pumped