By David Mwanje
As Uganda gears up for its first oil production in July 2026, the nation stands at a crossroads, with dreams of skyscrapers and world-class hospitals balanced against the sobering lessons of countries that squandered their oil wealth.
In the eighth episode of the Bank of Uganda’s BOU Connects podcast, Martha Kizza Kalema, a key figure in the Petroleum Fund team, paints a vivid picture of how Uganda plans to manage its oil revenue to secure a prosperous future for all its citizens. With oil fields buzzing and the Hoima Stadium already showcasing early benefits, the question isn’t just how the money will flow but how it will transform lives from the boda-boda rider in Bushenyi to the farmer in Kalangala.
Kalema explained that the Bank of Uganda, as the government’s banker, plays a pivotal role in safeguarding oil revenue. The Petroleum Fund, where all oil earnings are deposited, is the nation’s piggy bank, while the Petroleum Revenue Investment Reserve acts as a savings account for future generations. This dual approach ensures immediate needs, like roads and schools, are met while investing for a Uganda where, by 2060, world class healthcare and education are within everyone’s reach. “We are the guardians of Uganda’s future,” Kalema declares, emphasizing the bank’s responsibility to manage funds transparently and avoid the pitfalls of the “oil curse” seen in countries like Chile, where mismanagement led to economic decline.
The podcast highlights Uganda’s cautious strategy, shaped by studying global successes like the United Arab Emirates and failures like Chile. By investing oil money abroad initially, the Bank of Uganda aims to prevent economic disruptions, such as inflation that could make market visits unaffordable for ordinary Ugandans. Laws and policies, crafted with the Ministry of Finance, aim to ensure oil companies don’t exploit the nation and that every shilling is accounted for.
Kalema’s vision is bold a Uganda rivaling Dubai, with high-rise buildings, pothole-free roads, and optimized public services. Yet, she warns, spending all the money now risks leaving Uganda poorer than before, a lesson drawn from nations that failed to save.
Transparency is a cornerstone of this plan. The Bank of Uganda promises to publish investment details on its website, inviting public scrutiny. “This is the people’s money, and we need to be 130% accountable,” Kalema insists, announcing upcoming public seminars to educate citizens. This openness aims to build trust, ensuring Ugandans like the pastoralist in Kotido feel ownership over the oil wealth. Comparisons to Norway’s successful sovereign wealth fund set a high bar, with the Ministry of Finance setting clear targets for fund performance, holding managers like Kalema accountable.
Governor Michael Atingi-Ego in his recent speeches reinforces this commitment as he said “Our goal is to balance immediate development with long term stability, ensuring oil revenue uplifts every Ugandan without destabilizing our economy.” Finance Minister Matia Kasaija also echoed this in post budget speech, emphasizing discipline “We’ve learned from others’ mistakes our laws ensure oil money serves both today’s needs and tomorrow’s dreams.”
Interviewed for this story, Economist Mutesi Sophia of Bugema University, adds a cautious note “Transparency and diversification are key, but Uganda must strengthen oversight to prevent corruption from derailing this vision.”
The stakes are high. With 45 million Ugandans watching, the Bank of Uganda’s meticulous planning meetings, policy reviews, and negotiations aims to make oil a blessing, not a curse. As Kalema puts it, “Oil is coming, guys. Get ready.” Whether Uganda becomes a Wakanda-like utopia or stumbles into economic pitfalls depends on executing this vision with precision and accountability. For now, the nation holds its breath, hoping its oil wealth will pave the way to a brighter, fairer future.
Full episode of BOU Connects https://youtu.be/H-9lSYO9I3M
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