A delegation of 12 Scottish oil & gas supply chain companies and technical skills providers will head to East Africa this weekend on a trade mission which aims to open the doors to a multi-million pound training market in Uganda and Tanzania.
Scottish Development International (SDI) is leading the delegation, which will take in Kampala and Dar es Salaam, providing the companies with the opportunity to visit and gain first-hand experience of these dynamic, but challenging, markets.
The size of the market potential is huge; both Uganda and Tanzania have announced plans for significant new infrastructure (see notes to editor) to enable them to monitise the region’s oil & gas resources and 200,000 locals are set to be trained to support the oil and gas and construction industries in Uganda and Tanzania alone.
The economic benefit potential to Scotland in terms of increased staff and revenues is significant. Locals need to be upskilled with technical skills courses to deliver pipelines, refineries, LNG plants, airports and roads and to achieve this, the World Bank has allocated training grants of $258m to Uganda and $100m to Tanzania, SOGA has allocated $50m and in Kenya the government has contributed $13m.
All of this funding will be matched by the International Oil Companies to enable them to meet their Local Content obligations. A feasibility study sponsored by SDI indicates that Scottish O&G education providers are well placed to receive a share of this training funding, thanks to their experience in this field and the fact that their courses are accreditated; a key requirement set out by the international oil operators in the region.
“This mission comes at a crucial time in the development of the East African oil & gas industry; if ambitious Scottish companies can get in a foot in this market now and forge partnerships with African operators, the potential pay off for these companies and the Scottish economy is huge,” said Head of Trade and Investment for Energy at Scottish Development International Ewen Cameron.
Calls for supply chain expressions of interest have already been made by East African operators, presenting significant opportunity for Scottish supply chain companies to partner with local businesses to help deliver the projects to high quality standards.
The 12 companies taking part in the mission will gain market awareness and meet potential customers, agents and joint venture partners, thanks to a programme of one-to-one meetings, market briefings, company showcases, networking receptions and dinners organised by SDI and DIT.
The organizers had in the same time last brought a delegation consisting of trainers to Tanzania and Mozambique seeking to offer their skills & experience to these markets and to capitalise on the significant growth opportunities.