By Paddy Kinyera

Uganda’s emerging oil industry could paradoxically undermine its socioeconomic development. This is because of opportunities for corruption, including in project expenditure, procurement, land acquisition, and revenue collection. The government has introduced several anti-corruption measures and other initiatives are attempting to maximise the industry’s benefits while limiting its socioeconomic costs. Further collective actions across government, civil society, and the international community are needed to limit corruption’s impacts.

  Main points ▪ Corruption remains a real threat to the oil industry as it is deeply entrenched in the country’s political economy, affecting every sector. ▪ Generally, corruption has become a lucrative venture in Uganda, operated by ‘gainful concealment’. ▪ The oil industry offers rich ground for corruption, as evidenced to date by cases arising from project implementation by private firms. ▪ As part of institutional measures to guard the oil industry against corruption, the government created the Petroleum Fund within the Public Finance Management Act (2015) to prevent mismanagement of oil revenues. ▪ Existing institutions and structures are mainly constrained by bureaucracy, unresponsiveness, disjointed operations, and limits to legal mandates.   

U4 ISSUE 2024:7   

Bergen: U4 Anti-Corruption Resource Centre , Chr. Michelsen Institute (CMI), 2024. 28p.

By Guillaume Nicaise, Kaunain Rahman

Our research highlights that integrating anti-corruption measures within sustainability reporting frameworks can enhance corporate transparency and contribute to reducing corruption risks. However, inconsistent global sustainability standards and enforcement challenges limit the effectiveness of these measures. We present evidence and practice from the development cooperation sector to support practitioners in navigating governance and accountability frameworks in the private sector. Main points ▪ Integrating anti-corruption measures within sustainability reporting frameworks can enhance corporate transparency and improve governance. ▪ Sector-wide collective action initiatives can be effective in raising integrity standards and facilitating knowledge sharing among organisations. ▪ However, inconsistent global sustainability standards, superficial requirements, and enforcement difficulties can undermine the effectiveness of sustainability reporting. ▪ Detailed and transparent sustainability reporting by organisations like the United States Agency for International Development (USAID), the Swedish Development Cooperation (Sida), and the African Development Bank Group (AFDB) demonstrate the value of comprehensive anti-corruption measures in fostering accountability. ▪ These examples can help development professionals, aid donors, and policymakers who aim to improve governance frameworks and promote accountability in their practices.

Bergen, Norway: U4 is part of the Chr. Michelsen Institute (CMI), 2025. 37p.