Assessing the Barriers Facing the Implementation of National Participation in Oil and Gas Sector in Uganda.

Abstract

The study assessed the barriers facing the implementation of national participation in oil and gas sector in Uganda using Albertine Graben Region. The study focused on three objectives, which included investigating micro-level barriers; meso-level barriers and macro-level barriers facing implementation of national participation in Albertine Graben Region. This was conducted as a cross-sectional survey design, utilizing a mixed methods approach. The study comprised of 290 participants who were selected using purposive and simple random sampling. Data was collected using questionnaire survey, interview, and document review. Findings revealed that Micro, Meso, and Macro level barriers strongly, positively, and significantly affect the implementation of national participation in oil and gas sector in Albertine Graben Region. The study concluded that the higher the micro, meso and macro barriers are addressed, the higher the implementation of national participation in oil and gas sector in Uganda. The study therefore recommended that in dealing with micro level barriers, a national Oil Bank/Fund should be created to lend out money on relatively low interest rate to enable locals compete financially with foreign companies. In addition, training and orientation activities should be done in oil producing countries and capacity building needs to be reviewed. For meso level barriers, it is vital that host communities are sensitized and trained to widen the value chain and addition in the sector. Additionally, it is vital to follow up on integration of local companies. This will facilitate knowledge and skills transfer to locals. For macro level barriers, there is need for a favorable business regulatory environment. Taxes on local companies need to be below those charged from foreign firms and leaders need to be sensitized on Uganda’s oil sector.