Blood Oil: Will Uganda’s Oil Discovery Help or Hurt its People?

Filed in Entrepreneurship , International Development , Main Content , Politics & Policy 12 comments

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What would you do if you were told you were sitting on billions of gallons of oil? You might feel as though you had won the lottery – excited and nervous as you planned your new life of wealth. Now consider that after finding out you struck oil, the government told you the oil harvesting deals had to go through them. They would make profits off your oil and invest the money on your behalf and in your best interest … AND you would not see the terms of the contracts. So much for transparent business dealings.

That’s pretty much what’s happening in Uganda. The country is sitting on a lot of newly-discovered oil, yet it’s unclear how its long-suffering people will benefit from this discovery of resources. Uganda could become an important player in oil exportation and recipient of an enormous amount of foreign funds. However the country is also known for not being effective or efficient in its fight against corruption. One investigative reporter is looking to make a change to this pattern, legally.

Angelo Izama is “suing to force the government to make its production sharing agreements with oil companies public.” Izama explains, “Every Ugandan knows that public money is stolen. The government of the day is like Dracula in charge of the blood bank, it is not exactly rocket science that oil money, just like donor money or tax payers money can be stolen.”

The government contends that based on issues that have previously arisen with Nigerian oil agreements President Yoweri Museveni will not let Uganda suffer the same fate. He has “insisted on a refinery in Uganda to help this landlocked country become energy independent.”

Uganda may not see any of the desperately-needed changes in their infrastructure as a result of this new revenue stream for years to come. The vast majority of its population lives on less than $2 per day. Every day is a dire emergency for so many families. Yet, commercial production of the oil is expected to take place in the last quarter of 2011 with no estimation of when profits will be released, reported and used for the betterment of the communities.

While all of this gets sorted out, rural communities of Uganda need help now. They need medical supplies, education and micro-enterprising opportunities to fight their way out of poverty and become self-reliant. You can help by supporting the efforts of Just Like My Child Foundation – your money goes directly to the medical patients, families and agricultural programs. https://secure.groundspring.org/dn/index.php?aid=26195&Itemid=108

Quotes excerpted from CNN article, “Will Ugandan’s benefit from country’s new oil find?”

Posted by Vivian Glyck   @   31 August 2010 12 comments
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12 Comments

Comments
Aug 31, 2010
12:20 pm

Wow thank you for sharing this. The fact that a government will keep its dealings hidden from its own people needs to be made public. Thanks for fighting the good fight!!

[Reply]

Vivian Glyck Reply:

Power corrupts everywhere. No matter how flawed the media, an open society always encourages freedom of information.

[Reply]

Aug 31, 2010
12:21 pm
#2 abbey :

It’s not the blood oil that will hurt its people – it is the dark that their government oppresses upon them.

[Reply]

Aug 31, 2010
12:38 pm
#3 Ashley McElvain :

No mater if Uganda becomes one of the providers of cured oil to the world, we cannot depend on any of this “future oil wealth” to help the people of Uganda. The current path of educating the people, empowering the women and supporting the children is the only real way to help Uganda build a strong and fruitful future for generation to come.

[Reply]

Aug 31, 2010
12:44 pm
#4 eric b :

Hopefully Uganda does better than Nigeria in handling its oil reserves and wealth.

[Reply]

Vivian Glyck Reply:

Here, here!

[Reply]

Aug 31, 2010
6:15 pm
#5 Matthew Barbour :

It is refreshing to see an organization such as Just Like My Child that not only brings to light the political corruption and business dealings that are impacting impoverished communities in developing countries, but are also providing the necessary support for these communities to become self-reliant. Keep up the good work!

[Reply]

Vivian Glyck Reply:

We are really excited about the progress we are making with Project Grace, our livestock exchange program that functions like a microcredit program. We’re poised to triple our outreach over the next six months. When people hold their own economic power, they are somewhat insulated from the ravages of corruption.

[Reply]

Sep 1, 2010
12:08 pm
#6 Barbara Hagey :

Thank you Just Like My Child for keeping us informed about the true plight of Ugandan people. Your ‘hands on/on the ground’ approach ensures that funds go where donors intend. Keep up the fantastic work!

[Reply]

Vivian Glyck Reply:

Thanks, Barbara. You’ve been so helpful in making a difference on the ground. When I was in Liberia last year, it was clear that Africa’s greatest danger to its people is the richness of its resources. Let’s watch the Ugandan elections in January closely this year. Power corrupts, that’s why we have term limits for a President in the U.S. Take a look at how many “terms” many “elected” African Presidents are serving.

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May 14, 2011
6:08 am

iam 18 y but i follow what is going on oil discover .we ugandan we need to follow stages of our oil .bec need better mangement of our oil. per know uganda is in oil crusie due to wars in northen africa spec libya.things r at highy price .but i think our oil will improve us .

[Reply]

moess kalyango Reply:

fiest i feel like movement of comodities will be at cheap price due to cheap oil .we need proper arrangement ofoil revene to fight due crusie of oil

[Reply]

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