As the voice of the African energy sector, the African Energy Chamber (AEC) (www.EnergyChamber.org) is vehemently opposed to the Climate Rights International’s (CRI) – an organization fixated on perpetuating global energy poverty – in its efforts to prevent financial institutions and insurers from providing support to Uganda’s energy industry. With an electrification rate of less than 60% in urban areas and less than 20% in rural areas, Uganda should be allowed every right to tap into its 1.4 billion barrels of recoverable oil reserves and half-trillion cubic feet of proven natural gas reserves to ensure economic growth and social development in the country.
Fixated on disseminating energy poverty in Uganda, CRI Executive Director Brad Adams has called on the international community to divest in the development of the country’s Kingfisher oil field. Due to be commissioned in 2025, the project, which has created more than 1,500 local employment opportunities, is poised to become the first commercial oil field in Uganda. The field is estimated to hold 560 million barrels of oil and demonstrates the potential to bring untold benefits to the country and her people.
Determined to improve the landscape of the African energy sector, the AEC has been to Uganda. The Chamber has spoken with investors in the project and the communities of Uganda, who are wholehearted in their support for this crucial project. Yet, despite Uganda’s dedication to leveraging its resources to ensure reliable oil and gas supplies to meet local demand, a lack of investment in production and infrastructure development as a result of interference from developed nations has resulted in a stagnant market for the country.
Growing international pressure for the world to transition to renewable energy on the terms of the Global North is crippling energy progress in Africa. As Ugandans struggle to keep the lights on, to keep their families fed and healthy, average monthly U.S. crude oil production established a monthly record high of more than 13.3 million barrels per day (bpd) in December 2023. Meanwhile U.S. natural gas production continues to grow, reaching an average of nearly 100 billion cubic feet per day just a couple years ago. In Norway, the country reached an average daily gas output of roughly 11.4 billion cubic feet while daily oil production showed over 2 million barrels. The UK uses half a million tons of coal for energy production while Germany clocks in at the fourth largest consumer in the world with 257 million tons. And there are no signs of slowing.
In a 156-page report published this month, CRI said it documented widespread human rights abuses and environmental damage at the Kingfisher site in eastern Uganda. As a result of these insinuations, the CRI has called on all financial institutions and insurers to cease all support for the project, bringing untold harm to dozens of communities and millions of people in the country. Having visited the project on a number of occasions, the Chamber wholeheartedly denies these unfounded accusations of abuse and instead bids the CRI to beckon the U.S. and Norway to stop producing. To stop the UK and Germany from burning coal. Instead of beckoning Uganda to halt its development, perhaps Adams should ask Norway and Germany to cancel their gas deal rather than fixating on keeping Uganda poor.
“The time for Uganda to exploit its immensely valuable resources is now. Africa will not give in to international coercion to prevent the continent from energizing and bringing wealth to its people. Africa will not succumb to pressure to adhere to the energy transition on anyone else’s terms. We know what is good for African energy and we will do everything in our power to ensure that the continent’s resources benefit her people,” states AEC Executive Chairman NJ Ayuk.
The AEC is determined to improve the landscape of the African energy sector and explore the continent’s full potential in a way where our people benefit first. The AEC collaborates with African and international partners across the government and private sector spectrum in all areas of the energy industry and the Chamber is unremittent in its passion to drive energy development throughout the continent.
Distributed by APO Group on behalf of African Energy Chamber.
