Writes Leo Odera Omolo

THE US has applauded Uganda’s stance to build a refinery in efforts aimed at benefiting from the commercially-confirmed crude oil.

“Value-added production, such as refining, produces jobs and infrastructure that wouldn’t exist if Uganda only piped out its crude,” Jerry Lanier, the US envoy, said.

“While economic realities and market scale coupled with political imperatives will determine the final balance of how production occurs, this stand will ensure that Uganda gets some additional benefits from its oil.” This was in a speech read by Donald Cordell, the commercial and economic officer, at a three-day energy governance and capacity initiative conference in Entebbe recently.

The remarks come at a time when Uganda has decided to ensure that a local refinery to process 150,000-200,000 barrels of oil per day should be built in Hoima after studies confirmed the viability of the project.

This will ensure that jobs are created for Ugandans and local energy demand, like petrol, kerosene and diesel, are met rather than exporting it to Mombasa, which the relatively small oil companies are advocating for.

However, the US ambassador pointed out that the Government must ensure that the collected revenues are used to transform Uganda’s economy and encourage broad-based investment.

“Invest in energy infrastructure so businesses do not have to pay exorbitant power tariffs.

“Educate your people so businesses will hire Ugandans not only to do physical labour, but also as engineers, scientists, managers and other high-value jobs.”

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