Foreign Direct Investors and Affirmative Action in Promoting Equal Opportunities in the Mining, Oil and Gas Sector in Uganda

The activities of extractive industries on the lands of indigenous peoples and communities have had significant human rights impacts, either negatively or positively. Some oil, gas and mining companies, especially MNCs in Uganda have policies and guidelines on indigenous people’s lands and as well provide capacity building to their staff to be cautious about rights of local communities.

Key human rights abuses associated with mining, gas and oil extraction include violation of the right to life, forced displacement and destruction of the environment on which local communities depend. In the current era, outsiders seeking to exploit resources on indigenous peoples lands often don’t remain any longer than necessary to complete a specific development project, even brief intrusions can have devastating and long term consequences.

Despite universally accepted human rights standards protecting indigenous peoples, national laws that recognize their lands and rights to be consulted as well as a growing body of jurisprudence endorsing these norms, indigenous peoples continue to face unprecedented pressures on their lands and resources most often resulting into conflict and a negation of their rights.

In Uganda, the discovery of oil deposits, coupled with government’s push to expedite economic growth and development, has become a breeding ground for conflict. Extractive activities with harmful human rights outcomes are being launched throughout the country and host communities are feeling the heat of the problem. The purpose of this research has been to generate greater understanding of the situation of natural resource extraction and exploitation and the consequent human rights implications upon the most vulnerable and discriminated segments of the society. While Uganda’s Mining Laws require a surface rights agreement to be negotiated with land owners, prior to active mining and payment of royalties to land owners once revenue starts flowing, the law however, does not require any communication or consent from the local community or population during exploration works. These have raised fears of land grabs, loss of access to mineral deposits, water contamination and erosion, forced evictions and failure to pay royalties to traditional land owners by the MNC concerned.

The study was conducted in the two regions of the country (Albertine Region and Karamoja). Key informants of the study were local communities in the two regions, local government leaders, CSOs, Ministry of Energy and Mineral Development Officials and selective managers of the MNCs operating in this industry. The study used both quantitative and qualitative methods. Data was processed using SPSS Statistical Software program and reference to relevant laws in place.

The key findings were that marginalized groups, especially women were often inhibited by cultural norms and social attitudes when they attempt to get employment in the oil and gas sector. The same applies to other marginalized groups such as PWDs, Youths and older Persons. It was also found that there is heightened communal tensions and land conflicts in the neighboring exploration and mining sites. And the majority of respondents expressed dissatisfaction on the criteria used to allocate compensation resources. Lastly, some of the MNCs don’t have and follow corporate code of conduct in their business dealings with the local communities as well as collude with government officials to cover rights violations in their areas of operation