From Oil to Renewables: Uganda’s Strategy to Build a US$500 Billion Economy Hinges on Climate Investments
By The Urban Gazette Development & Sustainability Desk Kampala,Uganda
A recent study in Uganda argues that to reach a potential US$500 billion economy, the country must invest significantly in climate action — not just manage fossil fuels.
While Uganda is preparing for oil production in the Albertine region, the argument is that oil earnings must be used to fund the energy-transition rather than prolong a fossil-fuel model.
In parallel, Africa is advancing a unified climate position ahead of the upcoming COP 30 climate conference (10-21 Nov 2025 in Belém, Brazil).
Why it matters
Uganda’s growth trajectory: The economy has been resilient, with GDP growth around ~6-7% expected in FY2024/25 and 2025.
But climate risk is real: agriculture, industry, and services are vulnerable to extreme weather, yield shocks, and infrastructure damage.
Investment in renewables, adaptation, and climate-smart agriculture offers both risk-mitigation and growth upside — especially important for East Africa.
For policy and business: aligning oil-revenues, climate-finance, and sustainable infrastructure is a strategic imperative.
What to watch
How Uganda channels forthcoming oil revenues into green infrastructure, renewables, and adaptation projects.
The outcome of COP 30 and how Africa’s common position influences climate finance, debt for climate-action, and technology transfer.
Private-sector role: Investors and multinationals will look at how climate risks are priced in Uganda and East Africa.
Local business relevance: Small-holder agriculture, tourism, and manufacturing are all sensitive to climate/energy shifts.
