Buliisa Business Owners Struggle to Reap Anticipated Benefits from Uganda's Oil Sector

As Uganda moves closer to commercial oil production, business owners in the oil-rich Buliisa District are questioning whether the petroleum industry will deliver meaningful economic opportunities for local enterprises. For years, the development of oil in the Albertine Graben raised expectations for increased demand in accommodation, transport, and agricultural produce.

Anticipating an economic boom, many local entrepreneurs borrowed heavily from financial institutions over the past five years to expand hotels, build guest houses, and invest in large-scale farming. However, these investments are struggling to generate returns. Local business owners blame limited market access and the decision by oil companies to house workers in company-operated camps rather than privately owned local facilities.

Charles Basaliza Mulenga, former proprietor of Tamarine Resort, borrowed millions of shillings in 2022 to expand his hotel to 24 rooms. With few customers coming his way, he failed to service his loans and closed the business in 2023, after which it was advertised for sale by banks. Similarly, Philkol Mpairwe of Buliisa Executive Hotel noted that his monthly customer numbers dropped significantly, forcing him to drastically reduce his staff.

Farmers have faced similar hurdles. Moses Businge, a district councillor and watermelon farmer, invested Shs25 million into five acres of production hoping to supply the oil sector. Failing to secure supply deals, he had to sell his produce locally at heavily discounted prices, falling far short of his projected earnings.

Local leaders, including Buliisa Sub-county chairperson Kamanda Kabagambe and Buliisa Traders Association chairperson Cuthbert Kyahurwa, are urging oil companies to deliberately integrate indigenous entrepreneurs into the petroleum supply chain. Over 700 accommodation rooms constructed by local investors currently remain largely unoccupied, threatening the financial survival of the host communities.

Read more details on the original Daily Monitor.