Small businesses sign deal linked to EACOP project

Micro-small and medium enterprises have signed a memorandum of understanding with large and medium contractors who will be working on the $4bn East African Crude Oil Pipeline.

The MSMEs were selected from the 10 districts where the pipeline passes.

The Petroleum Authority of Uganda has been implementing an African Development Bank (AfDB) project for MSMEs Business Linkages training along the EACOP project.

The AfDB and the Government of Uganda signed a US$500,000 grant agreement to finance the capacity building of MSMEs to boost business linkages along the EACOP.

Ernest Rubondo, the Executive Director at the PAU, in a speech read by Michael Otonga, the Director of Finance and Corporate Services at the PAU said the overall goal of the project was to support local MSMEs along the EACOP to develop capacity.

It is also to open access to new market opportunities through the creation of business linkages between micro small medium enterprises together with linkages between SMEs and larger national, regional, or international companies.

“Today, we witness the signing of the MOUs between some of the medium and large enterprises which will enable the medium-sized companies to offer goods and services to the large companies while learning how to tap into the various oil and gas opportunities,” Rubondo said in a news released today.

The project, launched in Mubende district in January 2021, has trained over 400 SMEs in the EACOP districts. Of these, 137 were women and youth-led enterprises.

Martin Byaruhanga, team leader of ESTEEM International Consultants, who undertook the Business Linkages training for the MSMEs revealed that they surpassed the set targets of the number of MSMEs trained and partnered with the large contractors.

He said a total of 138 MoUs were signed between micro and small companies with 50 medium-sized companies against the targeted total of 50 MoUs, thus, exceeding the target by 88 MoUs.

Under the second cluster, 41 MoUs were signed between medium-sized and large companies, against the targeted 20 MoUs, thus exceeding the target by 21 MoUs.

Enock Kasirabo Mushaija, the Director Kisirabo Holdings, one of the beneficiaries of the Business Linkages training program from Mubende district expressed concern over the conclusion of the program which he said would be beneficial to others who missed out, especially the vulnerable groups.

The signing of the MoU is a positive development for the oil and gas industry in East Africa.

PAU said: “It is a clear indication that there is a growing recognition of the important role that MSMEs play in the development of the industry. With the support of the AfDB and the Government of Uganda, capacity-building initiatives, and business linkages, training will be provided to more MSMEs.”