Museveni Secures Support for Planned Oil Sovereign Wealth Fund

President Yoweri Museveni has received backing for plans to establish a sovereign wealth fund to manage Uganda’s anticipated oil revenues, marking a key step in the country’s preparations for commercial oil production.

The proposal, which is aimed at ensuring long-term management and investment of petroleum income, has gained support from government officials and stakeholders who argue it could help stabilize the economy and protect future generations from resource-driven volatility.

Under the proposed framework, revenues from Uganda’s oil sector would be channelled into a dedicated fund to finance strategic investments, including infrastructure development, industrial expansion and other priority national projects. Officials say the model is intended to reduce dependence on annual budget allocations and improve fiscal sustainability.

The idea of a sovereign wealth fund has been part of Uganda’s broader oil policy discussions for years, as the country moves closer to large-scale production in the Albertine Graben region. Government planners have repeatedly emphasized the need for transparent and disciplined management of oil revenues once production begins.

Supporters of the plan say such a fund could help Uganda avoid the so-called “resource curse,” where countries rich in natural resources experience economic instability, corruption risks or uneven development outcomes. They argue that clear governance structures and strong oversight will be essential for the fund’s success.

Critics, however, have previously raised concerns about accountability and the potential for political interference in the management of oil revenues. They have called for robust legal safeguards, independent oversight mechanisms and regular public reporting to ensure transparency.

Officials say consultations are ongoing to finalize the legal and institutional framework that will govern the fund, with further details expected as Uganda advances toward full-scale oil production.

If implemented effectively, the sovereign wealth fund is expected to become a central pillar of Uganda’s long-term economic strategy, shaping how oil revenues are saved, invested and distributed over the coming decades.

Source Daily monitor