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.

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.

Uganda’s oil and gas sector has transitioned from the exploration phase to the development phase in preparation for oil production (the operations phase). The extraction, processing, and distribution of oil require a great deal of infrastructure, which demands considerable acquisition of land from communities surrounding project sites. Here, we examine the social impacts of project land acquisition associated with oil production in the Albertine Graben region of Uganda. We specifically consider five major oil related projects that have or will displace people, and we discuss the consequences of this actual or future displacement on the lives and livelihoods of local people. The projects are: Tilenga; Kingfisher; the East African Crude Oil Pipeline; the Kabaale Industrial Park; and the Hoima–Kampala Petroleum Products Pipeline. Our findings reveal both positive and negative outcomes for local communities. People with qualifications have benefited or will benefit from the job opportunities arising from the projects and from the much-needed infrastructure (i.e., roads, health centres, airport) that has been or will be built. However, many people have been displaced, causing food insecurity, the disintegration of social and cultural cohesion, and reduced access to social services. The influx of immigrants has increased tensions because of increasing competition for jobs. Crime and social issues such as prostitution have also increased and are expected to increase.

Increasingly common methods for financing public infrastructure in developing economies are Resources-for-Infrastructure (R4I) and Resource-Financed Infrastructure (RFI), usually involving Chinese financial institutions and Chinese construction companies. Although there are advantages to the borrowing country from these project financing arrangements, there are also various issues and governance challenges. In Uganda, expectations around future revenue from oil extraction have led to many infrastructure projects being commissioned, mostly funded by RFI arrangements. To consider the appropriateness of these arrangements and to reflect on whether they are likely to contribute to positive development outcomes or be examples of the resource curse, we examined four public infrastructure projects: Kampala–Entebbe Expressway; Karuma Hydroelectric Dam; Isimba Hydroelectric Dam; and the Malaba to Kampala section of the East Africa Standard Gauge Railway. Although R4I/RFI arrangements are viewed positively by some commentators, others (especially local companies) consider they lack transparency, create unsustainable debt, promote China’s interests over the borrowing country, increase unemployment, unfairly compete with local business, deal in corruption, have poor working conditions, and result in substandard construction. Nevertheless, we conclude that Uganda and other developing countries have generally benefited from Chinese-funded infrastructure, and there is more myth trap than debt trap. However, to ensure positive development outcomes, governments and construction companies should ensure compliance with international standards, especially relating to: environmental and social impact assessment; human rights; benefit-sharing arrangements; livelihood restoration; and project-induced displacement and resettlement.