Uganda, Algeria Strengthen Trade Ties

Museveni holding talks with President Abdelaziz Bouteflika in Algeria on Monday

President Museveni has welcomed a decision by the Algerian government to increase the number of scholarships in petroleum studies to Ugandan students and to provide expertise to the government of Uganda in the petroleum sector.

Speaking shortly after touring the Sidi Rzine, medicine remedy Sonatrach Refineries in the Capital Algiers, the largest Algerian and African company and the 11th largest oil consortium in the world, the President commended the Algerian government for agreeing to send a team of experts to Uganda to work with the Ministry of Energy on various aspects of oil refinery and oil pipeline construction.

Sonatrach Refineries is an Algerian government-owned company formed to exploit the hydrocarbon resources of the country. Its diversified activities cover all aspects of production: exploration, extraction, transport, and refining.

Header advertisement

President Museveni, who is on a four-day state visit to Algeria, was accompanied on the tour by the Algerian Minister of African affairs and Cooperation Mr. Lamamra Ramtane, and that of Energy Mr. Khebri.

He was briefed about the operations of the 51 year old refinery that currently processes 64, 000 barrels of oil per day.

The oil refinery which was the first to be constructed by the North African country is one of the five refineries in the country today that produce over 605,000 barrels per day all together.

Uganda expects to start commercial oil production in the next few years.

The bulk of the income accruing to Uganda from oil will, in the first place, accrue to Government in the form of oil revenues of various types; royalties, income tax, etc. Government revenues will receive a substantial boost, which will allow for an expansion in the budget resource envelope. Government will have more resources to spend on public services and public investment.

Oil production will also allow Uganda to increase its earnings of foreign exchange or to save foreign exchange by substituting for fuel which is currently imported. Together with the increase in national income, this will have important consequences for the structure of the Ugandan economy.

Experts say the increase in national income will boost demand for goods and services; investment and consumption goods.

The refinery is being expanded to increase its production capacity increase from 64,000 barrels to 78,000 barrel daily

The refinery is being expanded to increase its production capacity increase from 64,000 barrels to 78,000 barrel daily


Mr. Boutouba Batouche, the Executive Director of Sidi Rzine Algiers oil refinery, said that the oil refinery produces a number of products that include LPG, Gasoline Reg. Gasoline Prem, Kerosene, Diesel, Naphta and fuel oil among others, for both domestic consumption and for export.

Mr. Boutouba Batouche also briefed the President on the ongoing revamping and expansion of the refinery that will see its production capacity increase from 64,000 barrels to 78,000 barrel daily upon completion.

President Museveni commended the achievements of the government and people of Algeria in the oil and gas sector which have contributed to the development of the country and said that Uganda looks forward to cooperate, pattern and borrow the good practices of the Algerian oil industry as the country starts her own oil and gas production in the near future.
President  Museveni and his Algerian counterpart, this  Abdelaziz Bouteflika have held a bilateral meeting during which the two discussed matters of mutual importance between the two countries and the African continent.

The two leaders agreed that the visit of President Museveni to Algeria offers new cooperative opportunities in areas such as education, approved vocational training, dosage defense and security and in the oil and gas sector.

Speaking shortly after their meeting on Monday, President Museveni while addressing the press referred to President Abdelaziz Bouteflika as his “old friend” and “freedom fighter” and that the two leaders had discussed the security situation in North Africa particularly on how to bring about lasting peace in Libya.

Mr. Museveni further said that he, together with his host, had discussed ways of enhancing trade between the two countries which he said was the most important factor for economic prosperity of both countries.

He further said that they also discussed enhancing cooperation in the areas energy especially in the oil and gas sector and in human resource development through exchange of scholarships and training programs.

Currently trade between Uganda and Algeria is minimal and this can be attributed to the limited infrastructure connectivity between the two countries.

Uganda’s exports to Algeria are low with the major products being cocoa, coffee and tea.

Uganda’s imports from Algeria are less than USD$ 1m per annum.

In 2011 and 2013 the imports rose to approximately USD$ 2m as a result of sugar imports during the time when Uganda requested for stay of EAC CET application on sugar imports.

The major industries of Algeria are agriculture, cement, clothing, fertilizers, food processing, iron and steel, mining, machinery, oil and natural gas production and refining, petrochemicals, textiles, transport equipment and wine production.

Main exports are crude oil, dates, fruit and vegetables, natural gas, petroleum products and wine.

In 2010, Algeria was named the fourth largest crude oil producer in Africa and the eighth largest global producer of natural gas.


Header advertisement
To Top