Discussions underscored the urgent need for substantial capital mobilisation through strategic international partnerships to fully harness Uganda’s energy potential and accelerate electrification efforts across the nation and potentially the wider African continent.

Jan Sadek, the European Union (EU) Ambassador to Uganda, highlighted the EU’s commitment to being a “‘predictable and reliable partner’” in this endeavour.

He emphasised the potential for collaboration with European private sector actors, citing companies like Schneider Electric, to bring expertise and innovation to Uganda’s energy sector.

Ambassador Sadek pointed out the EU’s favorable trade policies, with “‘zero tariffs on imports from developing countries like Uganda,’” creating a conducive environment for economic cooperation.

He noted, “‘Uganda stands to benefit greatly if these partnerships are maximised. We’re looking at unlocking investments that could total over Shs 1.7 trillion (€400 million) in the coming years.’”

The Ambassador’s remarks built upon the assertion that successful energy sector development strategies implemented in Uganda could serve as a “‘scalable blueprint for the broader African continent.’” This “‘extrapolation,’” as it was termed, underscores Uganda’s potential as a model for effective energy infrastructure development. “‘If Uganda succeeds, it sets an example for the entire region,’” Sadek added.

A key area of focus was the significant need for financing major energy projects, particularly in the hydropower sector. Uganda possesses substantial hydropower resources, yet their full potential remains untapped.

Ambassador Sadek specifically mentioned the Nalubaale and Kiira hydropower plants, noting that while vital, some require significant “‘rehabilitation to enhance efficiency and output.’” “‘Rehabilitation works alone could demand upwards of Shs 425 billion (€100 million),’” he stated, reinforcing the urgency of securing funds to restore these critical installations.

Okaasai Opolot, the State Minister for Energy, acknowledged the pressing need to “‘mobilize more funding for the energy sector through international partnerships’” to address the financing gaps.

While affirming the government’s ongoing efforts, he stressed the crucial role of external investment in bridging the existing funding deficits.

“‘We are currently facing a funding gap exceeding Shs 2.55 trillion (€600 million), which hampers our capacity to fast-track electrification,’” Opolot disclosed during the press conference.

Beyond direct financial investment, the forum also addressed the less tangible yet equally critical aspect of “‘regulatory frameworks.’” It was emphasised that “‘consistent, reasonable, and effective regulations are paramount to attracting private sector participation in the energy sector.’” The consensus was that a collaborative approach, involving both government and private entities, is essential for sustainable development. “‘Without clear regulations, even the most willing investors will hesitate,’” Opolot warned.

David Lecoque, CEO of the Alliance for Rural Electrification (ARE), underscored the forum’s significance in driving global energy transformation, emphasising the “‘need for partnerships in the energy sector’” to achieve universal access and sustainable solutions.

“‘Private sector and development finance institutions must come together to close this gap. It’s not just an option; it’s a necessity if we want to connect millions of Ugandans to the grid,’” Lecoque urged.

The EU, through its “‘Global Gateway initiative,’” aims to be a significant catalyst in attracting investment to critical sectors like infrastructure, energy, and digitalisation across Africa, including Uganda.

This ambitious initiative seeks to mobilize “‘€150 billion (approximately Shs 637 trillion)’” through a combination of grants and loans.

A key objective of the Global Gateway is to achieve “‘electrification for 100 million Africans,’” highlighting the scale of the EU’s commitment to addressing the energy access challenge.

Touching down three times a week — on Mondays, Thursdays, and Saturdays — the new service unlocks 6 tonnes of weekly cargo capacity. Each flight offers 2 tons of space, specifically aimed at fast-moving perishables like fresh produce, chilled fish, vegetables, and general freight.

“This is a game-changer for Uganda’s exporters,” said Wail Dagash, chief executive of Jet Fresh Cargo, the airline’s General Sales & Service Agent (GSSA) in Uganda.

“For years, logistics have posed a barrier to trade. But now, we have a direct, reliable lifeline to a major Middle Eastern market.”  The direct Entebbe-Riyadh link drastically shortens delivery times, with outbound flights clocking just 4 hours and 40 minutes.

Departing at 4:20am local time and landing in Riyadh by 9am, the schedule is optimized for fresh cargo, with bookings accepted up to 4pm the previous day. Packages up to 120×160 cm are welcome on board.

The new airbridge arrives at a critical juncture. While Uganda’s exports to Saudi Arabia reached $8.18 million in 2023 — driven by chilled fish ($3.81M), coffee ($1.37M), tropical fruits, dairy, and vegetables — the trade balance is still skewed.

Saudi exports to Uganda were valued at $417 million the same year, despite a notable drop from $607 million in 2018.

“There’s a huge opportunity to bridge that trade gap,” Dagash noted.

“We’ve seen a steady 10% annual growth in Uganda’s exports to the Kingdom over the past five years. This direct route could accelerate that trend.”  The diaspora is also playing a quiet but vital role. With an estimated 150,000 Ugandans living in Saudi Arabia, demand for homegrown products is rising.

“These flights don’t just carry cargo — they carry culture and connection,” Dagash added. “They bring Uganda closer to its people abroad.” Flynas’ move is part of a wider strategy to solidify its presence in Africa. The airline began passenger operations to Entebbe in January 2025, expanding its reach as Saudi Arabia pushes to diversify its trade and aviation portfolio under Vision 2030.

Now the region’s top low-cost carrier, Flynas operates 1,500 flights weekly across 139 routes — 70 domestic and 69 international — serving 30 countries.  The carrier has racked up accolades, including being named the Middle East’s Leading Low-Cost Airline by World Travel Awards and ranked fourth globally by Skytrax in its category. Dagash sees this as just the beginning.

“With Riyadh and Jeddah covered, there’s room for transshipment to destinations beyond. This model can evolve to serve the entire Gulf Cooperation Council (GCC) region.” He urged Ugandan producers to rise to the occasion: “Let’s use this corridor wisely. The window is open — our farmers and exporters must step through.”

As of April 2025, Flynas is the only airline offering direct air cargo flights from Entebbe International Airport to Riyadh, Saudi Arabia.

Other airlines, such as Emirates SkyCargo, Ethiopian Airlines Cargo, Etihad Cargo, and Qatar Airways Cargo, operate cargo services from Entebbe to various destinations, including connections to the Middle East.

However, these services typically involve layovers or transshipments through their respective hubs in cities like Dubai, Addis Ababa, Abu Dhabi, and Doha, rather than offering direct flights to Riyadh – leaving Flynas as the lone sky ranger for direct cargo link between Riyadh and Entebbe.

As air cargo demand continues to rise globally, especially for high-value perishables, Uganda’s new direct air link with Riyadh could become a cornerstone of its export economy — cutting freight costs, increasing competitiveness, and opening new doors in the Gulf and beyond.

​Flynas, Saudi Arabia’s leading low-cost airline, commenced its inaugural direct flights between Riyadh and Entebbe on January 15, 2025.

The first flight departed from King Khalid International Airport in Riyadh and arrived at Entebbe International Airport at 3:30am local time on January 16, 2025.

This new route operates thrice weekly—on Mondays, Thursdays, and Saturdays—enhancing connectivity between Saudi Arabia and Uganda.

The event was aimed to celebrate the continued growth and success that Vivo Energy has experienced since the Covid-19 pandemic, while highlighting new opportunities for suppliers to expand their businesses through the company’s ongoing transformation.

The conference focused on Vivo Energy Uganda’s initiatives, including network expansion, standardisation of shop look and feel, prioritisation of customer experience, and enhanced use of big data for informed decision-making.

These changes have translated into significant growth in value for Shell Select suppliers, further strengthening the company’s position as a leading player in Uganda’s energy and convenience retail market.

Alinafe Mkavea, Chief Commercial Officer at Vivo Energy emphasised the positive impact of network expansion on the business.

“The expansion of our network presents incredible opportunities for all of us. New sites mean increased business opportunities, greater incomes, and a more extensive market reach. We are committed to ensuring that every new site is a thriving hub for both our fuel and non-fuel retail businesses. The company’s focus on automation to improve stock management, streamline transactions, and enhance service delivery was also highlighted as a key strategy for ensuring operational efficiency and a superior customer experience,”Mkavea said.

She noted that in addition to network expansion, Vivo Energy Uganda is dedicated to upgrading existing stores and converting dealer-owned shops into fully branded Shell Select stores.

“This will ensure consistency in quality and experience across all locations. Furthermore, compliance and merchandising are areas of ongoing development. Vivo Energy plans to expand its Convenience Retail Coaches programme to maintain the highest standards of compliance and visual merchandising, ultimately boosting sales and improving customer satisfaction” she added.

Joanita Menya Mukasa, Managing Director at Vivo Energy Uganda applauded the  company’s suppliers.

“Your dedication and partnership have been instrumental in the continued success of Shell Select. Vivo Energy’s year-on-year growth has remained consistent compared to the previous year, a remarkable achievement that reflects the strong collaboration between Vivo Energy and its suppliers.”

“We take pride in our consistent performance and resilience.At Vivo Energy, our vision is clear – to be Africa’s leading and most respected energy business. But this vision extends beyond fuel. It encompasses the growth of our convenience retail business, making our Shell Select stores the go-to choice for convenience shopping.”

During the conference, Vivo Energy Uganda highlighted key strategic priorities for future growth which include expanding its network footprint, diversifying its retail offerings and standardising the retail experience across all Shell service stations.

According to officials, Vivo Energy Uganda is committed to driving innovation, expanding opportunities, and supporting suppliers in growing their revenues across the Shell Select/Shop network.

Instead, traders will now pay twice the amount of tax they owe in penalties.

The decision was announced by Henry Musasizi, Minister of State for Finance, during a meeting with Parliament’s Finance Committee.

The move comes after traders raised concerns that the blanket Shs6M fine per invoice unfairly burdened them, regardless of the transaction value.

EFRIS, which was introduced in 2021 as part of Uganda Revenue Authority’s (URA) digital tax compliance framework, was meant to enhance revenue collection by ensuring all businesses issue fiscalized receipts and invoices.

However, it became a subject of national controversy last year when traders protested against its penalties, arguing that they were too harsh and impractical.

The outcry led to multiple demonstrations across the country, with business owners demanding a review of the system.

Acknowledging these concerns, Minister Musasizi stated,

“Concerns have been raised regarding the high penalties of Shs6M per invoice, regardless of the value of the transaction, which disproportionately burden the taxpayers. To address this issue, we propose to amend the penalty structure so that the penalty for non-compliance will instead be twice the tax owed by the taxpayer.”

In addition to the EFRIS penalty amendment, the government has also proposed an import declaration fee on goods imported for home use, aimed at generating Shs79Bn to fund the construction of the Standard Gauge Railway (SGR).

“This measure seeks to raise revenue for infrastructure investment, particularly for the standard gauge railway, which is critical for Uganda’s trade competitiveness. In addition, it will render imports more expensive, hence promoting import substitution and supporting local industries. Furthermore, this proposal aligns with Uganda’s policy and other East African community partner states where similar fees are already imposed. For instance, Kenya apprised a 2% CIF charge, while Tanzania apprised a 0.6 customs processing fee,” explained Minister Musasizi.

pipeline.

Uganda’s oil sector is expected to create up to 160,000 jobs, with a significant portion requiring specialised technical skills.

The orbital welding training program is part of EACOP’s broader initiative to enhance local expertise and ensure compliance with international pipeline welding standards and it was conducted by an industry expert Imran Dilmohamud, who introduced the trainees to orbital welding, a technique essential for pipeline construction.

“Unlike traditional welding methods, orbital welding uses an automated machine to create precise, high-quality welds, reducing material wastage and enhancing efficiency. This technology is widely used in the US, Europe, and China, but it is new to Uganda. The technique ensures consistency and quality, which is critical for a pipeline of this magnitude,” Dilmohamud explained.

Participants were also trained on the use of a flux core machine for capping the pipes, a process that involves depositing a protective layer of material to prevent corrosion.

Dilmohamud emphasized the importance of mastering this technique, as it would be the primary welding method used at the construction site.

For many of the trainees, the experience was both educational and eye-opening.

George William Barbatana, one of the participants hailed the training.

“It’s a simple process because it’s more automated, but it requires a strong foundation in welding. This is the first time we’re having such training in Uganda, and I see great potential for its application beyond pipeline welding, such as in tank and cylinder manufacturing,” Barbatana said.

The training session involved both theoretical and practical lessons, with participants initially struggling to grasp the intricacies of the orbital welding machine.

However, by the end of the session, they had developed confidence in operating the equipment.

EACOP’s Deputy Managing Director, John Bosco Habumugisha, commended the participants and emphasized the training’s significance for Ugandans.

“The world has advanced significantly, and as we accelerate oil extraction in Uganda, embracing new technologies and modern methods in the oil and gas sector is crucial. Welding is now a technology-driven process, not solely reliant on individual skill. Participants in this training are privileged to gain practical experience with automated welding systems, vital for the East African Crude Oil Pipeline’s construction. This program ensures efficiency and precision through advanced techniques like microscopic weld analysis.”

As Uganda advances its ambitious oil development, initiatives like the Orbital Welding Training Program are vital for empowering local talent, ensuring they are equipped to contribute significantly to the nation’s energy future.

Currently, Uganda Airlines operates a fleet consisting of two Airbus A330-800Ns and four Bombardier CRJ-900LRs. The Airbus aircraft are used for long-haul international routes, while the Bombardier aircraft serve regional and shorter routes.

Recently, Uganda Airlines introduced an Airbus A320-200 under a short-term wet lease agreement with Lithuanian-based DAT. However, maintenance costs currently account for 20% of the company’s budget.

Establishing a hangar will reduce the government’s expenditure on sending aircraft abroad for maintenance. According to sources, the airline will need at least $50 million (UGX 183 billion) to establish a fully equipped and up-to-standard aircraft hangar.

According to Adedayo Olawuyi, chief commercial officer of Uganda National Airlines Company Limited, the aircraft hangar is part of the airline’s 10-year strategic plan, set to launch later this year.

“We have been engaging with the Ugandan Civil Aviation Authority. We are looking to acquire land from them to build our own hangar, enabling us to conduct in-house maintenance,” Olawuyi stated.

Last year, the airline received approval from the Civil Aviation Authority (CAA) to become an Approved Maintenance Organization (AMO) and has since enrolled engineers to conduct maintenance up to line checks at Entebbe Airport. However, major maintenance checks are still conducted at approved AMOs abroad.

“We hope to develop the expertise and capabilities to conduct heavy maintenance checks in Entebbe in the future. This will help us save significant foreign exchange currently spent on outsourcing maintenance services,” Olawuyi said.

Uganda Airlines recently launched a direct flight to London Gatwick, its third international route outside Africa, following Mumbai and Dubai. The airline now flies to 17 destinations, including Abuja, Lusaka, Harare, Nairobi, Mombasa, Dar es Salaam, Bujumbura, Johannesburg, Dubai, Zanzibar, Lagos, Kinshasa, Mumbai, Mogadishu, Juba, and Kilimanjaro.

As part of its expansion strategy, Uganda Airlines also plans to establish its own hotel to cater to connecting passengers.

“There are instances where passengers have long layovers of up to 10 hours in Entebbe. Providing them with hotel accommodation enhances their experience and promotes tourism,” Olawuyi said.

Currently, the airline incurs substantial costs providing hotel accommodation for passengers and crew. Establishing its own hotel will significantly reduce these expenses. Several successful airlines, such as Ethiopian Airlines, own airport hotels, catering services, and maintenance facilities, allowing them to minimize operational costs.

Uganda Airlines aims to adopt a similar model to enhance profitability. According to its strategic plan, the company intends to acquire four mid-range aircraft, including the Airbus A320 and A321neo, as well as two Boeing Dreamliners.

Additionally, Uganda Airlines plans to acquire two cargo freighters: a narrow-body Boeing 737 and a wide-body Boeing 777 freighter. Before the end of the year, the airline plans to introduce new routes to Accra (Ghana), Jeddah and Riyadh (Saudi Arabia), and Cape Town (South Africa).

By the end of the 10-year plan, Uganda Airlines aims to operate between 32 and 35 destinations.

“If we acquire the required aircraft, we plan to launch a route to Guangzhou, China. However, with our current fleet, once we start London operations, we won’t be able to add Guangzhou until we acquire a third wide-body aircraft,” Olawuyi said.

Credit: Geofrey S.

Speaking during their 23^rd annual general meeting held at Sheraton Hotel Kampala, the chairman of the  Uganda Freight Forwarders Association (UFFA) Charles Mwebembezi,  said business has stalled as many of their clients cant access the country.

“The conflict in South Sudan has started affecting us. Many of our clients transport cargo to South  Sudan but of late it is not easy to access the country. This of course affects their earnings; which also affects the earnings of the UFFA members who were facilitating this cargo movement,” Mwebembezi said.

South Sudan is said to be on the brink of another war after the multiparty unity government was  shaken by the arrest of several leaders from the main opposition party, the Sudan People’s Liberation Movement-in-Opposition (SPLM-IO).

The arrests led to  intense fighting in recent weeks in the strategic northern town of Nasir between national forces and the White Army militia, a loosely-organised group mostly comprising armed Nuer, Machar’s ethnic group.

The fear of a blown-out war in Juba saw Uganda deploy its military there with an eye on keeping the peace while securing investments made by Kampala.

Speaking during the Uganda Freight Forwarders Association annual general meeting in Kampala, their chairman expressed fear that escalation would see more of their members loses business.

“About two months ago, I visited S. Sudan to inaugurate the board of their freight forwarders association; but by then things were okay. But now I receive numerous calls of traders complaining that their cargo has disappeared in S. Sudan. So it affects the revenues to traders, UFFA members and Uganda as well,” Mwebembezi said.

Revolutionizing industry

The 23rd  annual general meeting resolved to revolutionalise the industry through training and capacity building for UFFA members.

“UFFA recognizes that developing human capital is essential for professionalizing the freight logistics sector. To this end, UFFA will administer comprehensive training programs aimed at equipping industry professionals with the necessary skills, knowledge, and competencies in freight forwarding, customs regulations, supply chain management, and digital logistics,” UFFA chairman, Charles Mwebembezi said.

He mentioned  programs such as the International Federation of Freight Forwarders Associations, Diploma (FIATA Diploma) and Continuing Professional Development (CPDs) that will focus on emerging trends like digital freight platforms, automation, blockchain applications in supply chains, and the use of artificial intelligence (AI) in global supply chains.

“ The association intends to establish partnerships with more international training institutions and professional bodies to align local training standards with global best practices.”

According to Mwebembezi, in order to enhance accountability and professionalism within the industry, UFFA is working closely with Ministry of Works & Transport, Uganda Revenue Authority (URA), Private Sector Foundation Uganda and several other stakeholders to develop a National Logistics Industry Legal Framework in Uganda.

This, he said will   introduce a code of conduct for all members to promote ethical business practices, develop industry-wide service standards to enhance transparency and improve service delivery but also establish a disciplinary committee to handle complaints and disputes within the industry.

Mwebembezi also mentioned enhanced collaboration with regulators, adoption of technology and digital transformation among the key items on their agenda.

Hussein Kiddedde, a member of the UFFA Advisory Council underscored the role of freight logistics industry in the development of the country.

“The freight logistics industry is a strong pillar in the economy. Part of what we do is customs clearance – which involves collection of taxes, where we work as agents for Uganda Revenue Authority (URA). As UFFA, we contribute over 80% of the freight logistics movements in the country. So we are a significant force to reckon with,” Kiddedde said.

James Malinzi, the assistant commissioner in charge of risk management in the customs departs at Uganda Revenue Authority hailed the freight logistics sector for playing a crucial role in revenue collection.

“No customs collection can be done without the involvement of freight and forwarding. They are contributing around 35% to the collection of URA’s national tax targets in general. The other 65% is largely domestic tax related,” Malinzi said.

The Uganda National Oil Company (UNOC) is set to take a 40 percent stake in the new refinery deal signed between the government and Alpha MBM Investments LLC, a UAE-based firm, Chimp Corps report.

Uganda on March 29 signed a historic oil refinery agreement with Alpha MBM Investments LLC, paving the way for the construction of a 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima District.

The deal, witnessed by President Museveni, at State House, Entebbe marks a major milestone in Uganda’s journey toward energy independence and industrialization.

According to a statement from State House, the agreement “will see Alpha MBM Investments LLC take a 60% stake in the refinery, while the Uganda National Oil Company (UNOC) retains 40%.”

A Memorandum of Understanding (MoU) was signed on December 22, 2023, between the government and Alpha MBM Investments LLC from the United Arab Emirates, outlining cooperation and negotiation terms for the Refinery Project.

Negotiations on key commercial agreements with Alpha MBM Investments commenced on January 16, 2024, with their conclusion paving the way for the construction phase.

President Museveni hailed the deal as a game-changer for Uganda’s economy and warned government officials against frustrating investors with bureaucratic delays.

“I want to thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for their commitment to investing in Uganda,” President Museveni said.

The refinery project will include; a state-of-the-art refinery complex in Kabaale, Hoima, designed to process 60,000 barrels of crude oil per day , a modern storage terminal in Namwabula, Mpigi District, ensuring adequate fuel reserves for national consumption.

The other components are; a 212 km multi-product pipeline, linking the refinery to the storage terminal, guaranteeing efficient transportation of refined products across Uganda and beyond and the Mbegu water abstraction facility, equipped with an advanced water pipeline system to support refinery operations and ensure sustainability.

The development works expected to commence this year, will see Uganda earn at least US$4b (about sh15.2trillion) in investment, on top of the ongoing oil related works, according to UNOC’s documents.

Besides the oil deal, Uganda and the UAE investors also signed five other agreements in various sectors, including the aviation sector, tree planting, a digital land management system, logistics cargo hubs and storage chain facilities, a comprehensive digital payment system for government transactions, streamlining tax collections and financial services and others.

President Museveni also reiterated his government’s commitment to fostering investment and ensuring Uganda benefits from its natural resources.

He cautioned against resistance to economic progress, declaring that those who delay investment will be left behind.

UAE investment

“If you don’t move, the NRM will move with or without you. We cannot afford to be left behind,” he warned.

President Museveni also praised UAE investors for their enterprising spirit, contrasting their success with Uganda’s underutilized potential.

“People in the desert, where there is no rain, have built an economic empire, while some Ugandans, blessed with fertile land and natural resources, remain poor. We must change this mindset,” he said.

Reflecting on Dubai’s transformation, President Museveni recalled how he first learned about its rapid development some years back.

“When we returned from fighting Amin, I had never heard of Dubai. It was only a few years ago that I visited and saw very active people. Work with them they are not bringing loans but investments,” he urged.

President Museveni further emphasized that Uganda must move from being a consumer economy to a producer economy, ensuring that its natural resources are processed locally to maximize economic benefits.

“This oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing,” he said.

“We must stop exporting raw materials and instead add value to everything we produce,” he said.

The President reaffirmed his commitment to removing bottlenecks that hinder investment, assuring investors that Uganda is open for business.

“We are here to work with serious investors who bring capital, knowledge, and long-term benefits to Uganda,” President Museveni declared.

“Those who stand in the way of progress will be swept aside,” he added.

On her part, the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa emphasized that the project aligns with Uganda’s National Oil and Gas Policy (2008) and the East African Refineries Development Strategy.

She described it as an initiative that will not only enhance Uganda’s energy security but also catalyze economic transformation.

Jobs

“The refinery will create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertilizer production,” Hon. Nankabirwa said.

“It will also attract Ugandan businesses to participate in the supply of goods and services, boosting local enterprise development,” she added.

Additionally, the minister noted that the project will fully comply with international environmental, health, and safety standards, integrating modern technologies to minimize environmental impact.

On the other hand, His Highness Sheikh Mohammed Bin Maktoum, who led the UAE investors’ delegation, expressed his deep commitment to Uganda, stating that he considers the country his second home and he is dedicated to supporting its development.

“I am honored to be here for these projects. As I always say, as long as I am in Uganda, I consider myself Ugandan. My team and I are here to support the nation and its people because our greatest happiness comes from seeing communities thrive,” Sheikh Maktoum said.

Reflecting on his first meeting with President Museveni nearly two years ago, Sheikh Maktoum praised Uganda’s leadership for its continued support and investment-friendly environment.

“I have never given up on this vision, I deeply appreciate Your Excellency’s support, and this is just the beginning of our journey together. What lies ahead is even greater and the possibilities are limitless,” he stated.

The event was also attended by the Minister of Finance, Planning & Economic Development. Hon. Matia Kasaija, the Deputy Attorney General, Hon. Jackson Kafuuzi , the Permanent Secretary and Secretary to the Treasury – Ministry of Finance, Mr. Ramathan Ggoobi , the Chief Executive Officer – UNOC, Ms. Proscovia Nabbanja, among others.

Beer maker AB InBev’s Ugandan unit, Nile Breweries Limited (NBL), has through recycling and efficiency measures, slashed water consumption at its Mbarara brewery by 40pc relative to 2013, when it was commissioned.

Speaking during World Water Day commemoration in Mbarara, George Odong, Brewing Manager, at the Mbarara plant, attributed the significant reduction in water usage to the introduction of innovative solutions to optimize water consumption in its operations at the plant over the years.

“Water is not only essential to our brewing process but also to the communities we serve. That’s why we are committed to using this vital resource responsibly,” Odong said adding: “At NBL, we take a holistic approach to water risk management and are committed to environmental stewardship while maintaining production excellence.

According to Odong, the brewery has invested in technologically advanced water treatment and recycling systems that purify and recycle water within the production processes and has incorporated high-efficiency cooling systems and automated processes that optimize water use and reduce wastage ion the production processes.

“Our goal is to continually reduce our water footprint while meeting our operational needs and upholding our commitment to sustainable water use.

“We have invested in water treatment technologies at the plant that ensure all water used in the brewing process is thoroughly treated before being discharged back into natural waterways. Treated wastewater flowing out of the facility is repurposed for non-production activities like floor cleaning and gardening, further minimizing waste,” he explained.

The Mbarara brewery relies on River Rwizi as its primary water source. To enhance water availability and quality, the brewery has contributed to restoring the river and addressing water security challenges within its catchment area. These efforts have been supported by collaborative partnerships with the World Wide Fund Uganda, the Ministry of Water and Environment, local governments, and communities.

To commemorate World Water Day under the theme “Cheers to Nature,” NBL and its partners planted yet more bamboo trees along River Rwizi banks to protect the ecosystem. “By planting the bamboo trees we aim to strengthen the riverbank, prevent soil erosion, and enhance the river’s natural filtration system, contributing to improved water quality and ecosystem health” said Clare Asiimwe, the Corporate Affairs Manager at NBL.  

So far, 270 hectares of the river have been mapped and demarcated, with over 25 hectares restored along a 27 km stretch.  “We understand the interconnectedness of our operations and the health of River Rwizi. We are actively collaborating with local partners to address water security challenges within the river’s catchment area.

“We have created alternative livelihood opportunities for the local communities, reducing their dependency on the river’s immediate resources,” Ms Asiimwe explained.

Approximately 1,000 households have been mobilized to adopt sustainable land management practices. Additionally, nine rain harvesting systems have been installed, and 13 are under construction to provide drinking water to hundreds of households with the Rwizi catchment.

According to a statement issued by EACOP Ltd, the funding comes from a syndicate of financial institutions, including KCB Bank Uganda, the Islamic Corporation for the Development of the Private Sector (ICD), the African Export-Import Bank (Afreximbank), and the Standard Bank of South Africa, the parent company of Stanbic Bank Uganda.

However, the statement did not disclose the exact amount contributed by each lender. The Ugandan Ministry of Energy estimates that the pipeline’s construction will cost approximately $4 billion (about Shs 15 trillion).

EACOP’s shareholders include affiliates of the three upstream joint venture partners: the Uganda National Oil Company (UNOC), TotalEnergies E&P Uganda, and CNOOC Uganda, alongside the Tanzania Petroleum Development Corporation (TPDC).

The ownership structure is as follows: TotalEnergies holds the majority stake at 62%, while UNOC and TPDC each own 15%, and CNOOC holds an 8% share. The pipeline is being constructed alongside two major upstream oil development projects—Tilenga, operated by TotalEnergies, and Kingfisher, operated by CNOOC.

Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, previously stated that the project was initially planned to be financed through a 40:60 equity-to-debt ratio. However, she later announced a revised financing arrangement of 52:48. At the time, she noted that the government was seeking $1.2 billion for the EACOP project. According to the statement, the project overall progress is over 50 per cent.

The 1,443km (296km in Uganda and 1,147km in Tanzania) pipeline will transport Uganda’s crude oil from Kabaale-Hoima to Chongoleani peninsula in Tanga, Tanzania, for export to the international market. It will have the capacity to transport 246,000 barrels of crude oil per day