Uganda can avoid the "dutch disease" if the real estate and agriculture sectors are linked to developments in the oil and gas sectors.
The housing and agriculture sectors could earn Uganda an extra eight billion US Dollars in the next phases of oil and gas developments.
With such earnings, Uganda can avoid the "dutch disease" if the real estate and agriculture sectors are linked to oil and gas. Economists have long known that large resource discoveries could be harmful to economies in the long term, a phenomenon that was named Dutch disease following the effects of the Netherlands’ gas discovery in the North Sea.
The Petroleum Authority of Uganda Executive Director Ernest Rubondo says the linkages in agriculture, housing and oil and gas bring new opportunities for the country. A housing deficit has been observed in the Albertine districts of Hoima, Kikuube, Masindi and Buliisa as more people move there for opportunities as the country embarks on the last journey towards oil production.
Previous studies have indicated that 150,000 workers will be required at the peak of the project. Oil and gas activities are also expected to attract over one million people in the Albertine Graben districts during the development and production stages.
“You can therefore trust that the aspect of food going to be very important in this regard. And it is very exciting to hear that it is already being extended not only to provide food to people in the oil and gas sector in the Albertine but it’s creating opportunity for medium and long-term to strengthen the export of food” said Rubondo.
He says the developments in the oil and gas sector and its infrastructure present an extraordinary opportunity for growth in demand for agriculture produce, housing, health services, education and hospitality. Rubondo was speaking at the signing of a Memorandum of Understanding with the Economic Policy Research Centre (EPRC) on Thursday.
The EPRC is over the next months expected to undertake a study on the agriculture and housing linkages with the Oil and Gas sector. The over 300 million Shillings’ study will be funded through a tripartite co-funding arrangement by Stanbic Bank Uganda. While Stanbic Properties Limited will fund the Housing and oil and gas linkages study also to be conducted by the Think Tank.
EPRC is expected to earn over 250 million Shillings from the housing and oil and gas linkages study. The study is expected to provide up-to-date information about the […]
