Ugandas's extractive value chain?

Discussion 

By Daniel Amule

Dar es Salam: Uganda's extractive value chain is not so strong yet for the oil and gas as most of the sequence of activities of discovery of oil to the end product. This discovery was made by the Ugandan team of Journalists during a plenary after brainstorming and research on where the country stands in the decision chain and whether our government negotiates from a position of strength or weakness.

The three stages of extractive value chain includes upstream which involves extraction and production, mid stream that is storage and transportation and last down stream where there is refining and marketing.

For oil and gas Total E & P, China National offshore oil cooperation CNOOC, Tullow are the players in the upstream though are yet to start mid stream.

Meanwhile in the mining the country in copper is at the up stream mid stream and down stream after experiences from Kilembe mines that has been taken over by Gibbet Hima, limestone mining done by Hima cement and Tororo cement are well in all three of the value chain. This means the government is not so in control in the value chain of oil and gas.

However for phosphates Sukulu mines is yet at upstream.

The negotiation power that government of Uganda holds is very weak for oil and gas.

 The oil companies are getting the best bargain in the value chain for instance CNOOC has a 25 year production licence! How long before the extractions are done that the companies would have reaped back their costs?.

Ghana and Tanzania who have been in the oil, gas and mining sectors are doing very well, right now 70% of Tanzania's revenue is from gas though Ghana is not yet making money from gas an continue using the gas locally because they still have debts to pay coupled with other issues of efficiency and wastage.

The workshop

The 10-day course on the extractive sector is being organised by the NRGI in partnership with Penplusbytes in Accra for 24 journalists from three countries – Ghana, Uganda and Tanzania.

Daniel with Abednego from Ghana after Team Uganda reviewed day 1

The capacity building training program, which is under the 'Strengthening Media Oversight of the Extractive Sectors,' is expected to help promote effective and consistent media reportage on oil, gas and mining activities.

It is expected to help increase the number and quality of stories on extractives across all media platforms.

It is targeted at early to mid-career reporters and would help offer them a wide range of benefits, including providing holistic and comprehensive support to journalists through specialized knowledge and skills modules, professional mentoring, experiential learning, access to sources and vital information.

Nicholas Phythian of Phythian content & consulting Ltd

It will also provide access to data as well as encourage interaction with peers, experts, policy makers, and oversight actors.

The course content developed by Nicholas Phythian of Phythian content and consulting Ltd , said good governance of oil, gas and mining resources and the revenues they generate requires effective oversight.

The Executive Director of Penplusbytes, Mr Kwami Ahiabenu, said "An effective oversight, however, hinges on an informed, responsive and dynamic media to provide necessary and accurate information to the public about critical governance issues. Here lies an opportunity for journalists to develop more insight and skills on the sector in Africa in ways that are self-sustaining,"