One of the panellists Allan Kembabazi who works for the Initiative for Social and Economic Rights-ISER suggested careful government allocation of oil revenue to critical sectors, particularly education and health.
The allocation of oil revenue to critical sectors dominated the last day of the Kampala Geopolitics Conference.
The conference discussed the impact of oil revenue on Uganda’s economy,
society, and Geopolitics.
One of the
panellists Allan Kembabazi who works for the Initiative for Social and Economic
Rights-ISER suggested careful government allocation of oil revenue to critical
sectors, particularly education and health.
She argued that strong education and health systems are
essential for long-term economic growth and a productive workforce.
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Godber Tumushabe, the Associate Director Great Lakes Institute for Strategic Studies said that countries with natural resources have advanced by investing in their
populations, thus creating a knowledgeable, capable workforce that can drive
national transformation.
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However, Abdu Katuntu, Member of Parliament for Bugweri,
disagreed, arguing that Uganda's oil revenue should instead be reinvested to
ensure sustainable development.
According to Katuntu, while sectors like education and
health face challenges, directing oil revenue into these sectors would be a
populist choice that may not address underlying issues. He suggested
prioritizing investment in production, which could generate additional revenue
to support the broader economy.
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Katuntu cited Middle Eastern countries that used oil
revenue to develop tourism, transforming deserts into thriving tourist
destinations that now play a vital role in their economies.
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Honey Malinga, Commissioner for Petroleum Exploration,
Development, and Production, and representing the Minister of State for Energy
and Mineral Development, noted that the government has already
diversified its investment strategy, focusing on sectors such as agriculture,
infrastructure, and industrial development.
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Dr. Fred Muhumuza, an Economist advised
that the debate over whether Uganda’s oil is a “curse or blessing” should be
abandoned, arguing that Uganda is already facing a form of oil curse.
He
pointed out that the government’s borrowing based on anticipated oil revenue
has yet to yield the returns initially expected.