Peace Building Group Warns of Risks Related to Uganda's Oil Prospects
By RWI Capacity Advancement fellows (2008-2009) Sophie Kutegeka and Nelly Busingye
International Alert (IA), an independent peace building organization that works in communities affected by violent conflict, recently launched a report on Uganda's emerging petroleum industry, "Harnessing Oil for Peace and Development in Uganda: Understanding National, Local and Cross-border Conflict Risks Associated with Oil Discoveries in the Albertine Rift." The report is the second briefing paper in International Alert's "Investing in Peace" series, which targets policy-makers in government, development partners, civil society and the private sector to explore the "political economy" of conflicts in Uganda.
Since its 2006 discovery of massive oil reserves, Uganda has been termed the "hottest inland exploration frontier" in Africa's oil industry. However, as "Harnessing Oil for Peace and Development" illustrates, with potential oil windfalls comes an increased risk of violent conflict on numerous levels. Research for the report, written by Jessica Banfield, was gathered from the local population and local leadership in Uganda's Amuru, Arua, Bundibugyo, Hoima and Kanungu districts—all of which are in the country's North and West regions, close to the border of the Democratic Republic of Congo. The discovery of oil near this border presents a risk of violent cross-border conflict between the two countries, and a challenge for local, governmental and NGO peace builders working to increase stability and development in the region.
Uganda's sudden prospect of oil wealth heightens existing inter-group tensions and risks worsening conflict not only between Uganda and the DRC, but also at the national and local levels. Ethnic and political fragmentation has frequently contributed to heated conflicts within Uganda, and could be easily exacerbated by the economic implications of a new oil boom. At the local level, potential oil conflicts could arise from community divisions over political, land, economic, environmental and other issues.
IA's report supports wider efforts to ensure that Uganda's oil wealth contributes to ongoing peace within the country and at its borders, as well as substantial development gains for all citizens. It proposes a number of strategies for government, local leaders, development partners, companies, civil society and the media to put Uganda on the right path for managing its oil resources. "Harnessing Oil for Peace and Development" also offers a number of recommendations concerning the cross-border and domestic conflicts that are bound to occur in a resource-rich country, including paying particular attention to ethnic divisions and local land conflicts in oil-producing regions as well as improving international relations between Uganda and the DRC by scaling up conflict-resolution initiatives.
The report argues that improving transparency in all aspects of the oil industry and government will go far in avoiding resource-born conflict. The report tackles the secrecy that has shrouded oil exploration in Uganda, notably its controversial Production Sharing Agreements, signature bonuses, and exploration activities, and suggests creating a petroleum database and widely disseminating information about developments in Uganda's oil sector and the impact of oil exploration through radio.
International Alert's recommendations come amidst great efforts by Uganda's civil society to establish firm standards of transparency and accountability in the nation's new oil sector. For this work, it is imperative that the public is sensitized to the importance of these principles in managing Uganda's oil resource, and reports like "Harnessing Oil for Peace and Development" go a long way towards spreading the word.
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