Editorial

I am delighted to introduce the latest edition of our local governance briefer, a platform dedicated to sharing insights and policy recommendations to support local and central government decision-makers. In this issue, we focus on local governments' crucial roles in promoting sustainable development and fostering transparency, especially within Uganda's extractive industries.

The theme for this edition of the briefer focuses on “Empowering Local Governance for Sustainable and Transparent Development”. This edition features two insightful articles that underscore the indispensable roles of local governments in environmental stewardship and fiscal transparency. The articles "Role of Local Governments in Sustainable Development" and "Fostering Transparency in Revenue Management" comprehensively analyse how local authorities can be pivotal in driving sustainable practices and ensuring accountability in the extractive sectors.

Key Issues Highlighted:

Sustainable Development through Local Governance: While offering significant economic opportunities, the extractive industry also presents environmental challenges. Local governments are uniquely positioned to mitigate these challenges by integrating local knowledge into environmental impact assessments and implementing robust land use plans. Local governments can balance economic growth with environmental protection by prioritising conservation and directing development away from ecologically sensitive areas. The article advocates empowering local authorities with the necessary training and resources to effectively monitor and enforce environmental regulations.
Enhancing Transparency in Revenue Management: Transparency in revenue generation and distribution is critical to preventing the resource curse plaguing many resource-rich nations. The second article emphasises the need to build the capacity of local government officials to manage petroleum resources effectively. It highlights the importance of independent audits, efficient tax collection mechanisms, and anti-corruption measures. By ensuring timely and accurate information flow between central and local governments, local authorities can better plan and invest in essential services, ultimately improving the quality of life for their constituents.

Thus, as we navigate the complexities of Uganda's development landscape, the insights in this issue remind us of the pivotal role that local governments play. By strengthening their capacity and fostering a culture of transparency and accountability, we can ensure that the benefits of our natural resources are equitably distributed and sustainably managed.

I therefore invite you to delve into these articles to further understand the issues and consider the recommendations provided. Together, we can empower local governments to become champions of sustainable development and guardians of fiscal integrity.

Thank you for your continued support and commitment to improving governance in Uganda. In case you missed Issue no.08, please click here.

Sincerely,

Dr. Arthur Bainomugisha, Executive Director.

In this Issue

THE ROLE OF LOCAL GOVERNMENTS IN MITIGATING THE IMPACTS OF EXTRACTIVES ON NATURE AND CLIMATE

By Phoebe Atukunda (Research Fellow) and Rebecca Mukwaya (Research Officer), ACODE

Uganda's natural bounty extends far beyond fertile farmlands and breath-taking landscapes. Beneath the surface lies a wealth of mineral deposits and vast oil and natural gas reserves, which offer a path to economic development. However, the extractive industries that tap into these resources, such as mining and oil drilling, can devastate the environment. Extractive industries can leave a trail of environmental degradation, disrupt ecosystems, and contribute to climate change. These environmental dangers lurking, such as habitat fragmentation and loss, water contamination from improper waste disposal, air pollution, land degradation, and climate change, have a ripple effect not only on biodiversity but also on the livelihoods of local communities that depend on healthy ecosystems for food, water, and income generation. Striking a balance between harnessing this economic potential and safeguarding the environment is a critical challenge for Uganda, with local governments playing a crucial role in mitigating the damage. While promising economic benefits, Uganda's embrace of the extractive sector presents a significant threat to the country's rich biodiversity and environmental health that needs attention. This article explores local governments' role in mitigating extractive activities' impact on nature and climate.

FOSTERING TRANSPARENCY, ACCOUNTABILITY, AND EQUITABLE ROYALTY SHARING OF REVENUE FROM EXTRACTIVES IN UGANDA

By Allan Mwebaze

Commercial oil accumulations were first discovered in Uganda in 2006 within the Albertine Graben. The exploration and appraisal of the Oil and Gas discoveries in the Albertine Graben have led to an increase in the country’s petroleum resource base from an estimated 3.5 billion barrels of Stock Tank Oil Initially in Place (STOIIP) to the current estimate of 6.5 billion barrels, of which, 1.4 billion barrels are estimated as recoverable. In addition, gas resources are currently estimated at 600 billion standard Cubic Feet (BCF). Sixty percent of the Albertine Graben is still undiscovered, and the nation might benefit from more resources, including the unexplored Hoima, Lake Kyoga, and Moroto, Kadam basins. With these new discoveries in the energy sector, it's incumbent that transparency, accountability, and equitable petroleum royalty sharing between local governments and the central government is prioritised to maintain sustainable growth and overcome the oil curse experienced in oil and mineral-rich countries such as Nigeria that have for years exploited their resources before Uganda. Abundant natural resources can boost economic prosperity, increasing investment in infrastructure, public goods, and international trade. However, transforming sub-soil natural resources into more tangible physical and human capital for faster growth has not been straightforward.

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