Uganda: TotalEnergies to Build Capacity for Local SMEs to Participate in Oil and Gas Sector

28 February 2024

Zoramu consulting group and Invest in Africa in partnership with TotalEnergies EP Uganda have launched the Industry Enhancement Center (IEC), a sector-led initiative aimed at enhancing the capacity of Ugandan Small and Medium Enterprises (SMEs) to sustainably participate in the oil and gas sector.

The IEC will provide sector information, customized business advisory, training, and capacity building services for Ugandan SMEs to enhance their knowledge and skills within the sector.

The aim is to boost their capacity to effectively participate in the opportunities within the oil and gas supply chain as well as other sectors.

Jimmy Mugerwa the managing director at Zoramu consulting group said, the IEC though based in Kampala will support all Ugandan SMEs interested in participating in the sector and will also foster opportunities for networking and exchanges between IEC members and current sector providers.

"The IEC launch is important for Ugandan companies, as it creates significant potential to supply goods and services to the oil and gas industry. It will address capacity gaps that previously limited Ugandan businesses from participating meaningfully in the sector and benefiting from the significant opportunities it presents,"Mugerwa said.

Speaking at the IEC launch, Philippe Groueix , General Manager, TotalEnergies EP Uganda said, contractor development initiatives are key to resolving challenges that prevent maximum participation of Ugandan suppliers in the oil and gas industry supply chain.

"Some of these challenges include, knowledge of the sector, HSE practices, certification requirements, technical competencies, and financial modelling. We believe contractor development support through the IEC is crucial in mitigating these challenges hence boosting local businesses to successfully participate in the sector."

"The launch of the IEC represents our commitment towards promoting national content and shared value for the sustainable development of Uganda's oil and gas sector and the country at large."

The IEC launch follows an Industrial Baseline Survey commissioned by TEPU and Joint Venture partners in 2013, through which the need for promoting national content and capacity building for Ugandan SMEs was identified so that they can ably participate in the sector.

The facility launch was officiated by Dr. Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development.

This initiative will empower Ugandan SMEs with the skills and resources to thrive within the oil and gas sector and beyond. By fostering local business growth, we create lasting economic benefits and position Ugandan companies as key drivers of national development." she said.

TEPU has issued a 3-year contract worth USD 2.3 Million to a Joint Venture comprising Zoramu Consulting Group, a Ugandan company, and Invest in Africa to establish the IEC.

The joint venture companies have industry knowledge and experience in strengthening the capacities and skills of SMEs within similar contexts.

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