Grants readied for SMEs in oil and gas sector

By George Mangula

The Skills Development Facility (SDF), which is part of the US$100 million Uganda Skills Development Project (USDP), is to provide grants to Small and Medium Enterprises (SMEs) engaged in the oil & gas business to skill the workforce and enhance their competitiveness as Uganda continues to embark on oil production journey.

SDF is a Government of Uganda Project funded by the World Bank and implemented by the Private Sector Foundation Uganda (PSFU).

According to Ibrahim Kasita who is spokesperson for Uganda National Oil Company (UNOC), the facility aims at promoting employer-led short-term training in order to address prevailing skills imbalances and shortages in Uganda.

“The Oil & Gas Industrial Baseline Survey (IBS) has identified the skills demand and supply in Oil & Gas related sectors that need to be enhanced for the competitiveness of local companies,” says Kasita who explains the importance of SDF.

The Workforce Skills Development Strategy & Plan for the oil & gas sector in Uganda forecasts that there will be a very rapid demand for labour at basic Skills & entry, trades & crafts and technician levels, particularly in construction, logistics & transport and catering and camp management services, he says.

Private Sector Foundation Uganda (PSFU), he says, is inviting eligible SMEs to apply for the SDF Window 1 which addresses skills shortages in the formal sector.

The Facility focuses on six priority areas, including Agriculture, Construction, Manufacturing /auto mechanics. Transport & Logistics, Information & Communication Technology (ICT) and Tourism& Hospitality.

According to Kasita, activities in Window 1 includes practical and technical training programs, apprenticeship & internship, voucher scheme for industries with mobility of workers for those intending to participate in it.

In terms of grant contribution from PFSU, the ceiling is US$250,000 covering a range of up to 80 percent for (medium companies), up to 50 percent for the (Large companies) up to 90 percent for (Voucher Scheme) and up to 100 percent (Internship). 

An important element of the initiative is to facilitate collaboration between training providers and industry to promote demand-driven skills development with special attention to innovative modes of training.

Support provided under SDF is not required to be paid back. But beneficiary companies will have to contribute a percentage of 20 percent-50 percent depending on their scale of operation.

The facility is a five-year project implemented through a grant facility mechanism that will be co-financed by the private sector through a matching grant contribution, and support training activities that lead to improved productivity and competitiveness in the formal and informal sectors.

“This requires strategic partnerships between firms, service providers and industry associations. The focus will be on short-term, practical and technical training of employees (including business skills for the informal sector) ranging from few days to not more than six months,” Kasita says.