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Uganda Could Get Rich On Oil, According To World Bank

KAMPALA- The world bank said Uganda could dramatically overhaul its economy with the right management policies in place by the time oil starts flowing in 2018.[9]

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The World Bank country manager for Uganda,[4] said in a statement that If this resource is well managed, it could take the country a lot less time to achieve its national vision of attaining upper middle income by 2040,”[1] Christina Malmberg-Calvo.

By the World Bank’s estimate,[10] Uganda will start pumping oil within two years, which could help the country transform its economy and society dramatically if revenues are managed appropriately.[6]

Uganda is categorized as a low-income nation with nearly 20 percent of the population living at or near the poverty level, therefore,[9] the country’s primary source of income pre-oil is agriculture.

Country could pull in as much as $2 billion annually once commercial oil starts flowing in 2018.

A report from the International Monetary Fund in early June found Uganda had taken steps to build economic growth and keep inflation low.

The IMF’s Min Zhu said in the a statement that the structural reforms have lagged and need to be revitalized to enhance competitiveness,[10] promote economic diversification, and foster sustained and inclusive economic growth.

The U.S. Energy Information Administration said Uganda holds an estimated 2.5 billion barrels of oil reserves.[12] The Ugandan government estimates it could recover about half of that,[4] but if production isn’t in full swing by 2018, however, the Bank of Uganda warned there may be long-term problems for the nation’s economy.[3]

British exploration company Tullow Oil published a report in 2013 on its Ugandan developments. [2]It said it has uncovered more than 1 billion barrels of oil in Uganda since operations began and most of that was in the country’s Lake Albert basin.[8]

The bank’s report said that Once production begins,[2] the World Bank estimates Uganda could bring in up to $2 billion per year in revenues.[1] That revenue needs to be allocated in a way that’s transparent, equitable and accountable.[5]

“This requires pumping back the oil profits in to sectors that will have huge economic spill-overs to the most vulnerable and poorest,” Malmberg-Calvo said.[6]

Source: UPI

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