Peter Ntephe Urges Global Investors to Act Fast on Uganda’s Energy and Infrastructure Potential

At the 14th UK-Africa Trade Summit, held on 6th September 2024 at The May Fair in London, Peter Ntephe, CEO of ERHC Energy, delivered key insights into the energy sector in East Africa, focusing on Uganda. Drawing from his vast experience in oil and gas exploration across Africa, Ntephe emphasized the immense potential for foreign direct investment (FDI) in Uganda’s energy and infrastructure sectors, while also highlighting the challenges that need to be addressed to attract global investors.

Investment in Uganda’s Energy Sector

Ntephe, who led his company’s drilling operations in Kenya’s Turkana region, praised Uganda’s ongoing efforts to build its energy sector but urged the government to streamline its processes. He pointed out that while Uganda’s six-month licensing period for oil and gas projects is relatively quick compared to other regions, a further reduction to 30 days would greatly enhance Uganda’s appeal to investors.

“Private investors want more from East Africa. We need a tsunami of global investment into Africa,” Ntephe declared, calling for Uganda to adopt a faster and more competitive approval process to attract international investors.

Infrastructure and Green Energy: A Focus for Future Growth

Ntephe also emphasized the growing importance of green energy in Africa’s future. As the world moves towards carbon-neutral energy sources, Uganda is well-positioned to capitalize on its rich natural resources in solar, hydro, and geothermal energy. Uganda has already made significant progress in these areas, as noted later in the summit by Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa.

In addition to energy, the session explored Uganda’s broader infrastructure development needs. Ntephe highlighted the critical role that public-private partnerships (PPPs) could play in accelerating infrastructure projects, particularly in transport, utilities, and energy distribution. While traditional development partners such as the World Bank and the International Finance Corporation (IFC) remain important, he stressed that the private sector would need to take the lead in filling the infrastructure investment gap.

Diplomatic and Regulatory Challenges

Ntephe raised concerns about regulatory delays, particularly around land access for energy projects. He noted that Uganda’s complex land tenure system often presents challenges for investors trying to acquire land for oil and gas development, leading to frustrating delays in project approvals.

Responding to these concerns, Hon. Nankabirwa acknowledged the difficulties posed by Uganda’s land ownership structure, which includes both private and government-held land. She assured investors that the government is committed to resolving these issues but urged patience as they work through the complexities of the system.

Call for Global Investment in Uganda

Throughout his speech, Ntephe remained optimistic about the future of Uganda’s energy sector, encouraging investors from around the world to seize the opportunities the country presents. He highlighted that while Western investors tend to be more cautious, investors from the Middle East and Asia are already moving quickly to secure projects in Africa.

“If you want to make money in the next two decades, get on a plane and come to Africa,” Ntephe advised, signaling the urgency of acting on the lucrative opportunities in Uganda’s energy and infrastructure sectors.

Conclusion

The UK-Africa Trade Summit 2024 showcased the critical role of investment in driving Uganda’s energy and infrastructure sectors. Peter Ntephe’s remarks underscored the need for greater efficiency in regulatory processes, increased private sector participation, and deeper collaboration between governments and international investors. As the global energy landscape shifts towards sustainability and green energy, Uganda, with its vast untapped resources and growing infrastructure, is well-positioned to become a hub for investment and economic growth in East Africa.