When the country Uganda comes to your mind what do you think of?
For most people the word Idi Amin is the first thing. Idi Amin was cruel dictator who took many lives in Uganda and affected the economy negatively. But gone are the days of strife and here come the days of hope.
Uganda is referred to the "Pearl of Africa" for its attractive scenery which includes lakes, rivers, game parks and mountains. Some of the most notable attractions are the R. Nile (with the source of the Nile in Uganda}, Lake Victoria {largest lake in Africa}, Mt. Rwenzori {A snow-capped mountain famous for its gorillas, and Queen Elizabeth National Game Park which attracts tourists with its variety of animals. These attractions provide an avenue for tourism which contributes to the national income.
Agriculture is also a major contributor to the national income. Cash crops like coffee and cotton are significant exports and earn the country a lot income. Agriculture used to account for 56% of the economy in 1986, with coffee as its main export, it has now been surpassed by the Services sector, which accounted for 52% of percent GDP in 2007
Recently, oil has been a pleasant discovery and the spirits of the country have been raised. An article on commodityonline.com recently highlighted the country's discovery of oil:
"Uganda's oil assets are situated in the Lake Albert basin, in the west of the country. The country has proven reserves of 700 million barrels of oil although this figure has serious upside. Uganda has even established an elite army unit to protect its oil fields. Nearly thirty years ago Shell started with exploration activities in Uganda's Lake Albert region but pulled out because of falling oil prices and political uncertainty. Five years ago, United Kingdom-based Tullow Oil, however, returned to Lake Albert and found large crude deposits. The firm is currently the largest operator in the country. Tullow and Heritage Oil Plc were originally 50% partners in two Ugandan oil blocks but Heritage decided to dispose of its assets. Tullow is awaiting final Ugandan government approval for its $1.5 billion purchase of Heritage Oil's 50% stake in the two blocks. It is also in discussion with Total and the China National Offshore Oil Company to take over a part of its assets. In an effort to decrease reliance on fuel imports, the Ugandan government has contracted an engineering company to undertake a feasibility study into the development of an oil refinery. Such a refinery has the potential to be very profitable for Uganda as it can sell fuel to its neighboring countries. "
Of recent 2 billion barrels have been discovered as quoted from Today's Zaman, "This is where the mighty River Nile is born to give life to a vast land as it flows through Egypt to its final destination, the Mediterranean Sea, and from here that a new African star is rising on the horizon. Following its recent discovery of 2 billion barrels of crude oil, Uganda has come under the spotlight" What is certain is that the L.Albert basin has crude oil which is only going to benefit the country's economy.
The discovery of oil echoes the fact that days of Idi Amin are a distant memory and days of hope are around the corner. Uganda needs the right minds to push the country forward as the country's potential is fascinating.
Sources
Today's Zaman, April, 26, 2009
http://www.commodityonline.com/news/Ghana-Uganda-to-lead-Africa%E2%80%99s-oil-quest-26382-3-1.html
Sources
Today's Zaman, April, 26, 2009
http://www.commodityonline.com/news/Ghana-Uganda-to-lead-Africa%E2%80%99s-oil-quest-26382-3-1.html
