They say “the sun that rises slowly lasts till evening,” and 2026 is shaping up to be such a year for Uganda — one unfolding with steady confidence and carrying the weight of significant national promise. As January ends, the country steps forward with a renewed sense of political clarity, continental pride and economic ambition.
The Presidential Elections have concluded, leaving a firm verdict of continuity and signalling the electorate’s preference for stable stewardship. Meanwhile, across the continent, the Africa Cup of Nations in Morocco delivered its spectacle and passed the baton to East Africa, the region set to host the 2027 edition. As the elders say, “when a path is trusted, even the footsteps become lighter.” The CAF handover reaffirmed that the Pamoja Bid is on course and that preparations are aligned with regional aspirations.
Amid these political and sporting milestones, one theme threads through nearly every national conversation — Uganda’s oil journey. It has emerged as the steady drumbeat beneath public dialogue. Throughout the campaigns, all presidential candidates articulated their visions for how oil revenues could accelerate national development. This echoed an old saying: “where treasure lies, every farmer knows the soil.”
Two broad approaches stood out. The first is anchored in long-term planning already embedded in the National Development Plan IV (NDP IV) and the recently launched Ten-Fold Growth Strategy, both of which position oil revenues as a catalyst for Uganda’s economic transformation. The second approach, raised by National Unity Platform presidential candidate Mr Robert Kyagulanyi, called for a review of the Production Sharing Agreements (PSAs) with licensed oil companies and a reassessment of royalty allocations to producing districts.
While the latter proposals may appear attractive at surface level, the broader development question lies in sustainability. Uganda addressed many of these concerns through the Petroleum Laws enacted in 2013, which established the Petroleum Fund. Inspired by global benchmarks such as Norway’s Sovereign Wealth Fund and Saudi Arabia’s Public Investment Fund, Uganda’s model requires all oil revenues to be deposited into the Petroleum Fund under the management of the Bank of Uganda. Though still modest in accumulation, the Fund’s potential is already visible — the recently launched Hoima Stadium, fully financed through the Petroleum Fund, stands as a tangible example of what disciplined resource management can achieve.
This model reflects a global lesson: sustainable revenue utilisation must prioritise long-term investments over short-term distributions. Morocco, host of the 2026 AFCON tournament, offers a regional case study. Its sports infrastructure boom and growing sports tourism profile have been supported by revenues from its natural resources and its strategic position along key maritime and energy corridors, helping it emerge as a North and West African energy hub.
Uganda’s fiscal framework mirrors this philosophy. The Production Sharing Agreements and the Public Finance Management Act (Cap 171) create a structured pathway for revenue flows, ensuring that proceeds from finite resources like Uganda’s crude contribute to lasting improvements in productivity, human development, and national well being. As the elders remind us, “wealth that lasts is wealth that builds.” Cash handouts may soothe immediate needs but rarely secure future prosperity.
As the country looks toward First Oil, the petroleum sector is no longer a distant prospect. It has become a national compass; quietly but firmly guiding expectations, shaping economic planning, and signalling a pivotal chapter ahead for Uganda’s development journey.
The Author is the Director Legal and Corporate Affairs at the Petroleum Authority of Uganda
