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The News Network Africa > Blog > News > What Supplier Development Forum Means for Uganda’s Oil and Gas 
News

What Supplier Development Forum Means for Uganda’s Oil and Gas 

Hayley Sky
Last updated: 24 February 2026 12:57
Hayley Sky
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What Supplier Development Forum Means for Uganda’s Oil and Gas 
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After about 20 years of waiting since 2006, Uganda is finally set to extract its first oil from the Tilenga and Kingfisher fields in July 2026, just three months away. The debate is no longer about whether there is oil, but rather about who will participate and at what level.

The recent Supplier Development Forum organized by the East African Crude Oil Pipeline (EACOP) brought together a plethora of stakeholders in the oil and gas sector, including technicians, suppliers of goods and services, trainers, regulators, and project contractors. This was more than a routine stakeholder engagement. It was a strategic positioning platform for local enterprises seeking a place at the center of the oil and gas value chain.

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First, oil and gas projects require heavy capital investment, highly technical expertise, and strict compliance with globally monitored standards. These realities can easily leave local suppliers as spectators in their own country’s resource journey. However, the forum brought local companies into conversations around manpower supply, driving services, piping, electrical works, engineering, inspection, and training. By doing so, the narrative shifted from exclusion to preparation.

The platform creates structured engagement between international oil companies, Tier 1 contractors, government regulators, and local businesses. This interaction provides clearer guidance on procurement pipelines, compliance requirements, and technical standards, the very areas that often disadvantage smaller enterprises due to limited access to information. When suppliers understand what is required before tenders are announced, they are better positioned to compete.

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John-Bosco Habumugisha, the EACOP’s deputy Managing Director says “Local companies should be ready to compete for every opportunity announced, if lost, use it to enhance skills and improve for the next bid”.  The result is not just contract awards, but employment creation for Ugandans working within those local companies.

Second, the forum plays a critical capacity-building role. Collaboration with international firms allows local businesses to learn industry standards, safety protocols, and quality assurance expectations. During the recent forum, industry leaders emphasized the importance of partnerships between local suppliers and Tier 1 contractors. Such partnerships enable knowledge transfer and practical exposure, which strengthens long-term competitiveness. It relates to how attentive we were listening to guidance offered by university students who often visited us while in high school. Their mentorship saved us from costly mistakes. In the same way, exposure to global contractors prepares local firms for future phases of the project and even opportunities beyond Uganda.

Through initiatives aligned with the Petroleum Authority of Uganda (PAU), supplier development efforts also help businesses understand certification processes and regulatory compliance. When local companies meet international benchmarks, they transition from hopeful bidders to recognizable partners capable of delivering quality services.

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Supplier Development forums also strengthen economic linkages. Oil and gas operations never operate in isolation. They stimulate demand in construction, logistics, catering, ICT, transport, environmental services, and financial services. By expanding awareness of upcoming opportunities, Small and Medium Enterprises get integrated into broader project ecosystem, which ensures that economic value circulates within Uganda rather than flowing outward.

For Uganda, projects like EACOP are among the largest infrastructure investments in East Africa, translating into thousands of contracts across multiple sectors. A well-prepared hotel, for example, can secure catering or accommodation contracts, while transport companies can support logistics operations. The forum promotes transparency around upcoming tenders and demystifies procurement processes, enabling broader participation.

Fourth, the forum builds trusts. Globally, the oil and gas sector has faced scrutiny regarding transparency, and equitable benefit sharing. Locally, Uganda has witnessed skepticism and protests related to oil development, including environmental concerns raised about EACOP. But when government officials, operators, contractors, financiers, and local entrepreneurs engage openly, accountability improves and misinformation is reduced. Dialogue fosters realistic expectations and shared responsibility.

Finally, the forum reflects a long-term vision for Uganda’s oil and gas sector. While extraction may last 25 years, the true legacy will not only be measured in barrels exported, but also in businesses strengthened, skills transferred, and industries diversified. Supplier development platforms lay the foundation for sustainability by preparing local firms not only for oil contracts, but also for regional and global markets.

For stakeholders in oil and gas, continuous dialogue and transparency remain essential. The Supplier Development Forum is therefore not just an event, but a strategic instrument that transforms local content into practical opportunity. If effectively leveraged, it can catalyze inclusive and sustainable growth within Uganda’s oil and gas sector.

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