- While on the face of it this move makes sense, I hope there is a balance to ensure that the scheme is not abused – leading to the loss of essential revenue, which Uganda needs.
- In Malawi we had the Kayelekera Uranium mine, which was given many incentives (including a lax agreement that was too generous), but which resulted in the loss of revenue by the government. African countries cannot afford to be conducting their affairs like this, because they are the ones who are most in need of resources – to help with economic development, poverty eradication and public investment(healthcare, education and national security). Further as I often say, when was the last time an African company was given a 70% stake in a mining interest in Europe or America?
- It would be better and wiser, in my view, for the Ugandan government to get into the business of oil exploration. They would be able to keep more of the money derived from the natural resource – which they would then use in developing Uganda. In any case Uganda is a small landlocked country, and when you have few resources, you must utilise them wisely.
- See my earlier article to understand my thinking on these issues.