The EITI Board concluded that Uganda has achieved a moderate overall score (78.5 points) in EITI implementation. Uganda has made strides in improving transparency and accountability in its oil and mining sector by establishing a robust multi-stakeholder platform and undertaking reforms to its Minerals Act. However, further efforts are needed to disclose contracts and beneficial owners, and to ensure that civil society can freely participate in the EITI process.
“I commend Uganda for establishing a robust multi-stakeholder platform that facilitates public engagement and data-driven debate,” EITI Board Chair Helen Clark said. “Building on a strong foundation for sector governance, stakeholders should prioritise concrete measures to disclose oil, gas, and mining agreements and beneficial ownership information. Safeguarding the broader civic space will be crucial to sustain transparent and accountable governance of natural resources in Uganda.”
Uganda joined the EITI in 2020 with the goal of leveraging transparency to enhance public trust, improve the investment climate and strengthen revenue collection. An emerging oil producer, Uganda holds significant petroleum reserves and plans to begin oil production in 2025. The East African Crude Oil Pipeline (EACOP), currently under construction, is poised to transport 6,000 barrels of oil per day from Uganda’s Albertine Graben to Tanzania’s Tanga port, promising substantial revenues streams for Uganda.
Setting the stage
In recent years, Uganda has instituted robust frameworks to manage its anticipated oil wealth and bolster the mining sector’s prospects. The passage of the 2022 Mining and Minerals Act marked a significant milestone, paving the way for enhanced governance and transparency in the sector.
The establishment of Uganda’s EITI multi-stakeholder group (UGEITI) has played a pivotal role in enhancing public oversight and governance within the extractive sector. Using the EITI platform, the government has been addressing key issues such as Minerals Act reforms and beneficial ownership disclosure. Moreover, civil society engagement within the multi-stakeholder group and has facilitated extensive public outreach and debate activities, focusing on areas such as contract transparency, beneficial ownership, fiscal justice and local impact. However, further efforts are needed to ensure that civil society representatives can fully engage in public debate on the EITI process and express their opinions without restraint, coercion or reprisal.
Shining a light
Amid heightened public expectations and concerns, particularly regarding petroleum development, the EITI process has served as a vital diagnostic tool for assessing information and extractive governance practices within Uganda's extractive sector. EITI reporting has provided valuable insights on the fiscal benefits derived from oil, gas and mining activities, including how revenues are allocated at the subnational level. Additionally, the EITI has fostered discussions on the environmental impacts of EACOP, enabling disclosures on social and environmental impacts and contributions of extractive projects which can address concerns raised by civil society.
Moving forward
Despite notable progress, there are opportunities for UGEITI to enhance transparency in areas such as gold refining and trade. Uganda’s government can further advance transparency by fully disclosing oil, gas and mining contracts, building on broad industry support to publish extractive agreements. It can also take steps to disclose the ultimate owners of extractive rights and companies, which will help close avenues for corruption and conflicts of interest. With anticipated first oil exports in 2025, these steps will be imperative to build upon the foundation of transparency and ensure Uganda’s extractive sector is managed in the interest of its citizens.
