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AG okays disclosure of oil agreements amidst international pressure

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The Attorney General, Kiryowa Kiwanuka, has given the Ugandan government a green light to disclose the international oil contracts to the public.

This comes after the oil companies said they have no objections to publicising the oil contracts. Kiwanuka’s advice is likely to be welcomed by civil society and Ugandan citizens who have long called for transparency in the oil and mining sectors. Kiwanuka, in a letter dated July 2, 2024, advised the minister of Finance, Matia Kasaija that he was at liberty to disclose the production sharing agreements (PSAs) if he deemed it appropriate.

In a letter dated July 2, 2024, Kiwanuka advised Finance minister Matia Kasaija that he may disclose the production sharing agreements (PSAs) if he deems it appropriate. This guidance was in response to a letter from Kasaija dated June 1, 2024. However, Kiwanuka’s advice specifically pertains only to contracts with TotalEnergies Uganda and CNOOC Uganda Limited. He cited letters from these companies, dated July 18, 2021, and November 29, 2021, respectively, which confirmed their consent to the disclosure of their PSAs to fulfil the requirements of the Extractive Industries Transparency Initiative (EITI) standard 2.4.

“Therefore, we advise that should you deem it appropriate you are at liberty to disclose the PSAs as prescribed by the EITI standard requirement,” reads the letter copied to the minister of Energy and Mineral Development, state minister for Minerals, deputy attorney general.

The letter was also copied to the permanent secretary/secretary to the treasury, ministry of Finance, permanent secretary ministry of Energy, solicitor general and deputy solicitor general. A member of the civil society who had seen the letter however said it was silent concerning the contracts signed with other companies involved in oil exploration in the Albertine area.

Some of those include DGR Energy Turaco Uganda SMC Limited which is a unit of Australia’s DGR Global and state-owned Uganda National Oil Company (UNOC) and Nigeria’s Oranto. From Kiwanuka’s advice, it appears that the contracts signed with UNOC and mining contracts will remain a secret.

Uganda has been a member of the EITI since August 2020, committing to contract transparency by publicly disclosing the full text of agreements governing the exploitation of oil, gas, and mineral resources. By joining the EITI, Uganda aimed to enhance transparency, strengthen tax collection, promote public debate, improve the investment climate, and create lasting value from its petroleum and mineral resources.

This week, EITI executive director Mark Robinson visited Uganda to assess the country’s progress in ensuring transparency in the oil, gas, and minerals sectors. Robinson was accompanied by Suneeta Kaimal, president and CEO of the Natural Resource Governance Institute (NRGI), which has been instrumental in building the capacity of Ugandan civil society, media, parliamentarians, and government ministries on natural resource governance.

EITI executive director Nark Robinson
EITI executive director Nark Robinson

NRGI has supported capacity building of Ugandan civil society, media, parliamentarians, and ministries on natural resources governance, especially in accountability and governance. Robinson and Kaimal on Thursday met the minister of Finance, Matia Kasaijja, and his officers and discussed the progress in ensuring public disclosure of contracts under the extractive sector.

He also met officers from the Attorney General’s office and the key industry players like TotalEnergies and members of the civil society under multi-stakeholder groups (MSGs) hosted at the Uganda EITI secretariat under the ministry of Finance.  Robinson told journalists that his team found it so striking that all the stakeholders in Uganda were committed to the EITI process.

”The EITI seemed to have curved out open space in Uganda for genuine, free, and open debate on these complex issues around the extractive industry,” he said.

RObison’s visit to Uganda follows the validation report on Uganda whose results were released in May 2024. The EITI board said Uganda had achieved a moderate score in implementing the 2019 EITI Standard at 78.5 points. The overall score reflects an average of the three component scores on stakeholder engagement, transparency, and outcomes and impact. On the transparency component, Uganda achieved a fairly low score of 67.5 points. Robinson while meeting the minister raised some of these issues.

“We identified some of the improvements that could be made. He was very receptive. For example, how can contracts further be made open to the public? So there is a process to move towards that goal,” he said.

He confirmed that they discussed making public the audited accounts of Uganda National Oil Company (UNOC).

“He was very receptive to that idea. So I was very struck by their receptivity and recognition from the government to respond positively to some of the recommendations,” added Robinson.

Sources who attended the meeting with the minister said he asked his visitors about what Uganda would gain from its participation with EITI. Robinson said the minister’s question was good because it reconfirmed why Uganda signed up to the EITI. The EITI board had reported that there had been little progress on full disclosures of contracts in the oil sector despite Uganda EITI’s (UGEITI) efforts.

The EITI board also noted that beneficial ownership data was not available though there had been reforms put to create a national beneficial ownership registry. Robinson seemed to have had information to the effect that TotalEnergies and CNOOC Uganda had written no objection letters to the disclosure of the PSAs signed with the government of Uganda.

“Uganda has to demonstrate real progress on making the contracts public. That needs to happen not just those two but across the sector,” he said.

Robinson emphasized the need for Uganda to demonstrate real progress in making contracts public across the entire sector, not just with TotalEnergies and CNOOC. He also called for the creation of a public registry of beneficial owners in the oil, gas, and mining sectors and the reconciliation of discrepancies in gold production data.

“The fourth one is to reconcile some of the discrepancies in the mining data, especially gold production,” added Robison.

Asked why they were insistent on gold data, he said, “It is so important in many countries. And it is one of your major minerals in Uganda that has significant and considerable revenue. That is why gold matters so much than other sectors of the mining,” he said.

Gold, one of Uganda’s major minerals, has been a focal point due to its significant revenue potential. A recent UN report highlighted Uganda, Rwanda, and Burundi as key transit routes for gold smuggled from the eastern Democratic Republic of Congo to Dubai. In Uganda, discrepancies have been noted between gold production figures reported by the Bank of Uganda and those declared by Uganda Revenue Authority (URA) customs.

David Sserwadda, a senior mining inspector, and a member of the Uganda EITI Multisector Group said there is an effort to ensure that different agencies of the government don’t regulate gold exports. He revealed that there had been a meeting with the customs department on how to align gold export in the sense that when it is not cleared, the customs should not allow the export. Uganda has to close some of those before the next EITI board validation commencing on July 1, 2026.

Source: The Observer

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MEDIA FOR CHANGE NETWORK

Know Your Land rights and environmental protection laws: a case of a refreshed radio program transferring legal knowledge to local and indigenous communities to protect their land and the environment at Witness Radio.

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By Witness Radio team.

Introducing a vital radio program that urgently addresses the crucial role of the media in the face of climate change. Titled “Stamping the Law on Rights and Environment Protection,” this program is now part of the most engaging program line-up on Witness Radio, ready to make a difference.

The research–based program, which will be presented in a talk show format, focuses on a single case as they occur in communities. It will host legal experts and scholars to offer legal advice and counseling, and guide communities on steps to take to push back on land and environmental injustices they are facing.

By breaking down complex environmental and land legal frameworks into discussions and practical examples, “Stamping the Law on Land Rights and Environment Protection” empowers communities to understand their rights, demand accountability, and engage constructively with duty bearers. It’s not just a radio program—it’s a platform for justice, empowerment, and sustainable coexistence between people and the environment, inspiring change.

This radio program will feature voices from different local and indigenous communities, not to spice up the program, but to share their ordeals, including how they settled on the land, and how they have sought redress. Community stories are at the heart of our program.

The radio team envisions using the radio airwaves to simplify access to legal information, educate the masses on land and environmental laws, and empower local communities to use the legal information to demand justice from courts and quash judicial institutions. The radio program applies to all local and indigenous communities in Africa to stay awake in the current wave of land-based investments targeting communities’ land and end the degradation of the environment, and to prevent future land forced evictions and maintain peaceful coexistence in both local and indigenous communities.

Witness Radio’s program “Stamping the Law on Environment Protection” is a powerful platform dedicated to educating and empowering Ugandans about the laws governing land management and environmental protection. Through this program, legal and academic experts shall sensitize listeners to key legal frameworks, their constitutional rights, and the proper procedures for acquiring, using, and protecting land and the environment.

In recent years, especially between 1990 and 2023, Uganda has experienced prevalent forced land eviction due to different types of investments, and faced severe effects of climate change, leaving thousands of communities landless, food insecure, and malnourished.

Our first broadcast this Tuesday focuses on a review of the Kawaala zone II case, one of the most significant land eviction cases in recent years. In this case, eviction affected urban poor communities in the name of an infrastructural project, and the project implementer never wanted to compensate or resettle communities whose land was to host the project. We will delve into the details of this case and discuss the implications for similar communities.

Mark your calendars! “Stamping the Law on Environment Protection,” a program will be broadcasting every Tuesday, Thursday, and Saturday from 10 am to 11 am East African Standard Time (EAT).

Join us on this insightful journey. Download the Witness Radio app from the Google Play Store or tune in live on our website at www.witnessradio.org. Your thoughts and experiences related to land and environmental issues are invaluable. Let’s engage in meaningful discussions and enjoy more informative content together, because your voice matters.

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MEDIA FOR CHANGE NETWORK

Gov’t Seeks Land to Establish Palm Oil Mill and Nursery in Busoga

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Mayuge — The Government of Uganda is seeking land in Mayuge District to establish a palm oil processing mill and a nursery, as part of its plan to expand the National Oil Palm Project (NOPP) to the Busoga sub-region.

The call was made by the State Minister for Agriculture, Hon. Fred Bwino Kyakulaga, during the official launch of the oil palm planting exercise in Mayuge District this month. The Mayuge hub — which also covers Bugiri and Namayingo districts — marks the first phase of oil palm cultivation in Busoga, following years of preparation and feasibility studies.

 

Hon. Kyakulaga revealed that the government requires about 500 hectares of land to construct the mill and nursery, which will serve farmers across the hub.

NARO’s oil palm nursery in Mayuge

“Government currently does not own land in this area, so we are calling upon willing landowners to sell land for this purpose,” the Minister said. “The mill will allow farmers to process their harvest locally, creating jobs and ensuring long-term income for households.”

The Minister emphasised that Busoga’s proximity to Jinja offers a logistical advantage, as crude oil extracted from the mill can easily be transported to Jinja for refining.

The Mayuge oil palm initiative is part of a broader strategy to increase domestic vegetable oil production, reduce poverty, and improve household incomes through commercial agriculture. Uganda currently spends over USD 300 million annually on imported palm oil, a cost the government aims to cut significantly once local production scales up.

Oil palm seedlings

Low-Interest Financing

Equity Bank Uganda, which serves as the fund manager for the National Oil Palm Project, is partnering with the Ministry of Agriculture to manage and disburse funds to participating farmers.

Ms Catherine Psomgen, Director for Public Sector and Social Investments at Equity Bank Uganda, said the bank has already supported 896 farmers in Mayuge, Bugiri, and Namayingo with over UGX 1.2 billion in financing.

“We provide financial literacy training, agribusiness support, and ensure that funds are used transparently and efficiently. Through our Africa Resilience and Recovery Plan, we’ve dedicated 30% of our loan portfolio to agriculture.”

Ms Catherine Psomgen, Director for Public Sector and Social Investments at Equity Bank Uganda

Under the scheme, smallholder farmers with 2.5 to 5 acres of land can access up to UGX 25 million at a 10% interest rate — significantly lower than market rates — with a four-year grace period and six years for repayment. The funds are released directly to suppliers for land preparation, seedlings, fertilisers, and maintenance, ensuring accountability.

Local Production and Expansion Plans

A nursery with 50,000 seedlings has already been established in Mayuge and is ready for distribution to farmers. The seedlings, previously imported from Indonesia and Malaysia, are now being produced locally through the National Agricultural Research Organisation (NARO) to reduce costs and delays.

The government is also preparing Phase Two of the project, which will expand into Bugweri, Iganga, Luuka, and Jinja districts in the next financial year.

Hon. Kyakulaga reiterated that sugarcane farming will not be replaced but complemented by oil palm, given that only 10% of Busoga’s land area is needed to meet Uganda’s annual demand for refined palm oil.

While enthusiasm for the project is high, land acquisition remains a major challenge. The Mayuge District Oil Palm Growers Cooperative Society reported that over 54,000 planting holes have already been dug, yet many farmers are still awaiting seedlings.

“We have the farmers, we have the funding, and we have the will,” Hon. Kyakulaga said. “What we now need is land for the mill and nursery so that Busoga’s oil palm dream becomes a full reality.”

The National Oil Palm Project is funded by the International Fund for Agricultural Development (IFAD) with USD 76 million, complemented by private sector investment to a total of USD 210 million (UGX 300 billion). The program aims to empower smallholder farmers, create rural jobs, and strengthen Uganda’s agro-industrial base under the government’s Agro-Industrialisation Agenda.

Source: softpower.ug/

 

 

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MEDIA FOR CHANGE NETWORK

New! The Eyes on a Just Energy Transition in Africa Program is now live on Witness Radio.

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By Witness Radio team

Introducing a unique radio program that delves into the urgent and crucial role of the media in the face of climate change. Titled ‘Eyes on a Just Energy Transition’, this program is now part of the engaging lineup on Witness Radio.

This investigative radio broadcast is not just about informing, but also about empowering. It aims to foster public dialogues that shape perceptions and influence policy and collective action on climate change. It particularly focuses on the rights and freedoms of marginalized and poor communities, highlighting their crucial role in Africa’s just energy transition.

Mark your calendars! The ‘Eyes on a Just Energy Transition’ program will be broadcasting every Monday, Wednesday, and Friday from 10 am to 11 am East African Standard Time (EAT).

Our first broadcast this Friday focuses on Uganda’s journey in the renewable energy transition plan, exploring the Legal, political, institutional, and regulatory frameworks that underpin the country’s renewable energy struggles.

Uganda lost nearly half of its forest cover in the recent past, especially between 1990 and 2023. It was mainly due to the widespread reliance on firewood and charcoal for daily cooking and heating needs, as well as the expansion of agriculture to meet the demands of a rapidly growing population. Also, Commercial logging and large development projects accelerated the loss of forested areas.

Uganda, like many other countries, is making a positive shift from dirty, fossil-based fuels to cleaner, sustainable energy sources. This transition is not just a change, but a beacon of hope for our planet’s future.

In the broadcast, experts in the renewable energy sector share their experiences and explain the journey of Uganda’s Energy Transition Plan (ETP); inform Ugandans to understand its importance and the aim; they will break down the ETP and Renewable Energy Policy 2023 for people to understand it; and explain how it affects everyday life.

Join us on this insightful journey. Download the Witness Radio app from the Google Play Store or tune in live on our website at www.witnessradio.org. Let’s engage in meaningful discussions and enjoy more informative content together.

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