TotalEnergies $2.3m Enterprise Development centre unveiled in Kampala

On Feb.27, TotalEnergies EP Uganda’s top executives were joined by government officials and private sector players to launch the Industry Enhancement Center (IEC), a sector-led initiative located in Kololo – Kampala, a leafy area, aimed at enhancing the capacity of Ugandan Small and Medium Enterprises (SMEs).

TotalEnergies issued a 3-year contract worth US$2.3million to a Joint Venture comprising Zoramu Consulting Group, a Ugandan Company, and Invest in Africa to establish the IEC.

Philippe GROUEIX, the General Manager, TotalEnergies EP Uganda said, 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.

He explained: “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 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 Center complements other ongoing initiatives by the Company to support the development of National Content. These initiatives include Community Supplier Development programmes in the Tilenga project area, skilling, and support to education institutions.

Ruth Nankabirwa Ssentamu, the Minister of Energy and Mineral Development said, “This initiative will empower Ugandan SMEs with the skills and resources to thrive within the oil and gas sector and beyond.”

“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,” said Project Director, Jimmy Mugerwa.

Ernest Rubondo, the Executive Director of Petroleum Authority of Uganda  said, “The project responds to the needs of National Content, one of the areas which we regulate.” 

TotalEnergies E&P Uganda and its joint venture partners developed this centre following the 2013 Industrial Baseline Survey recommendations.

Uganda expects to get its first oil next year. But key projects including the East African Crude Oil Pipeline (EACOP) and the Refinery appear to be behind schedule according to industry experts.