Uganda has become the latest East African nation to commit to the Extractive Industries Transparency Initiative (EITI), signaling a significant step toward openness in its oil sector. The decision, announced after prolonged advocacy from civil society groups and international stakeholders, seeks to address concerns about secrecy in managing anticipated petroleum revenues.
The EITI requires member states to disclose details of extractive contracts, including licensing terms, fiscal arrangements, production data, and revenue allocations. Uganda’s Minister for Finance, Matia Kasaija, emphasized that joining the initiative aligns with efforts to strengthen transparency, improve tax collection, and build public trust in the sector.
"The values promoted by EITI, particularly transparency across the extractive governance chain, informed this decision," Kasaija stated. The government will now be obligated to publish all oil sector contracts, from license allocation to expenditure of revenues, while allowing multi-stakeholder oversight.
With 51 global members since EITI’s 2003 inception, Uganda joins 25 African nations committed to resource accountability. However, regional attention now shifts to Kenya, which has delayed EITI membership despite promises since 2012. President Uhuru Kenyatta pledged to disclose oil contracts but has yet to act, drawing criticism from civil society.
Kenya’s reluctance contrasts with Tullow Oil’s transparency in other jurisdictions like Ghana. Despite a donor-funded technical assistance program aimed at strengthening petroleum sector governance, progress remains stalled. Charles Wanguhu of the Kenya Civil Society Platform on Oil and Gas attributed this to resistance from officials wary of scrutiny.
Uganda’s oil sector, developed by companies including Total, Tullow, and CNOOC, involves a $10 billion upstream infrastructure project. A joint pipeline with Tanzania is set to enable oil exports by 2020, with proven reserves estimated at 6.5 billion barrels. EITI membership has drawn praise from the European Union Mission in Uganda, which called it a positive step for financial accountability as the country prepares for commercial production.
