We consider the different types of rent-seeking practices in emerging oil economies, and discuss how they contribute to social conflict and a local resource curse in the Albertine Graben region of Uganda. The rent-seeking activities have contributed to speculative behavior, competition for limited social services, land grabbing, land scarcity, land fragmentation, food insecurity, corruption, and ethnic polarization. Local people have interpreted the experience of the consequent social impacts as a local resource curse. The impacts have led to social conflicts among the affected communities. Our research used a range of methods, including 40 in-depth interviews, focus group discussions, participant observation, and document analysis. We argue there is an urgent need by all stakeholders—including local and central governments, oil companies, local communities, and civil society organizations—to address the challenges before the construction of oil infrastructure. Stakeholders must work hard to create the conditions that are needed to avoid the resource curse; otherwise, Uganda could end up suffering from the Dutch Disease and Nigerian Disease, as has befallen other African countries.

We consider the impacts of the development of oil resources (exploration and extraction) on the lives and livelihoods of people living in the Albertine Graben region of Uganda. These impacts are both positive and negative and include: employment opportunities; infrastructure development; project induced displacement and resettlement; in-migration and influx; inflation; reduction of food security; restrictions on access to fishing, firewood and herbs for cooking and medicinal purposes; inadequate compensation; land grabbing; prostitution; environmental degradation; annoyance and inconvenience; fear and anxiety; and changes to their communities, livelihoods and landscape. In-depth interviews were carried out with key informants, including with leaders at the village, parish, sub-county, and district levels in Uganda. Focus group discussions and participant observation were also used. We argue that there is need for all stakeholdersespecially the government of Uganda, oil companies, the local communities, the Bunyoro Kitara Kingdom, and civil society organisationsto collaborate in order to address the deficiencies in the development of oil resources and the region, and to create the conditions needed to avoid the resource curse and associated Dutch disease and Nigerian disease, and instead to achieve a social licence to operate for oil development in the region.