The Efficacy Of the Local Content Provisions In Promoting Indigenous Business Participation In the Ugandan Oil Sector

Abstract

The ideal is that local content provisions in the law ought to guarantee that businesses owned by Ugandan citizens exclusively benefit from the opportunities in the oil sector, the reality is that the Ugandan local model is unclear, the monitoring mechanism is not by an independent body separate from the regulator (PAU).

The legal provisions failure to define Ugandan company in terms of the nationality of its shareholders, has led to a loophole exploited by foreigners registering companies in Uganda to qualify for local content opportunities. The discrepancy between the ideal and reality may lead to less indigenously owned Ugandan businesses benefiting from the business in the oil sector. It is therefore vital to determine the efficacy of the local content provisions in promoting the participation of indigenously owned Ugandan businesses in the oil sector.