UCEM CEO advocates for private sector role in enhancing local content in East Africa

UCEM CEO, Humphrey Asiimwe speaking at the 11th EAPCE

Dar es Salaam, Tanzania | THE INDEPENDENT | The Uganda Chamber of Energy and Minerals (UCEM) Chief Executive Officer, Humphrey Asiimwe has reiterated private sector commitment to strengthening participation in East Africa’s petroleum industry through local content development, skills enhancement, and policy advocacy.

Speaking at the 11th East African Petroleum Conference & Exhibition (EAPCE) in Dar es Salaam on March 6, Asiimwe emphasized that local content is the foundation of sustainable oil and gas industry growth in the region.

“As a region, we must leverage the petroleum sector to drive industrialization, create jobs, and boost economic resilience. Uganda has made significant progress in promoting local participation, but more needs to be done to harmonize regulations across East Africa and unlock financing opportunities for SMEs,” Asiimwe said.

UCEM, formerly the Uganda Chamber of Mines and Petroleum, has played a critical role in advancing local content initiatives by fostering dialogue, policy engagement, and business-government collaboration.

Asiimwe highlighted key achievements, including the significant growth in local procurement, where Ugandan companies have secured 4,511 contracts worth US$2.1 billion out of a total US$5.3 billion in oil and gas procurements. Over 15,169 jobs have been generated, with 90% of positions filled by Ugandan nationals, including 4,773 from host communities.

Additionally, more than 7,000 Ugandans have been trained in petroleum industry-related fields, reducing reliance on foreign expertise. The private sector has also contributed to over 50 community projects in education, healthcare, and infrastructure, reinforcing its social license to operate.

While Uganda’s Petroleum Act of 2013 mandates foreign firms to prioritize local sourcing and employment, Asiimwe urged for standardized local content policies across East Africa to create a more predictable investment climate.

“Policy fragmentation hinders business expansion and cross-border collaborations. UCEM is actively engaging with the East African Business Council and regional chambers to advocate for aligned regulations,” he said.

Asiimwe also called for the accelerated implementation of Uganda’s National Content Fund, which was approved by Cabinet in 2024 but is yet to be operationalized. Given Uganda’s average lending rates of 20% per year (BoU Data), he stressed the importance of alternative financing mechanisms such as credit guarantees and lower- interest funding to support local suppliers.

As environmental, social, and governance (ESG) considerations gain prominence, Asiimwe underscored the role of UCEM members in promoting sustainable industry practices.

“The private sector is leading efforts to ensure oil and gas developments adhere to global ESG standards. Increased corporate social responsibility (CSR) initiatives and compliance monitoring will enhance industry reputation and long-term sustainability,” he added.

He advocated for the regionalization of local content by calling for the harmonization of local content regulations across East Africa to create a more predictable investment environment. He proposed a tiered approach, where local content is prioritized at the national level (Tier 1). Still, if a qualified national company is unavailable, the opportunity should first be extended to regional firms (Tier 2) before considering international options. Additionally, we emphasized the need for cross-border mobility of skilled labor.

Broadly, he outlined several key recommendations, including increased investment in specialized training institutions and the expansion of internship programs. He also emphasized the need for regional governments to align local content frameworks to enhance investor confidence and called for stricter monitoring of sustainability policies and corporate social responsibility programs. Additionally, he urged global oil firms to integrate more local companies into their supply chains and called for unlocking financing bottlenecks to enable greater local business participation.

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