Embrace holistic planning, budgeting for Hoima Oil City’s socio-economic transformation

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OPINION

By Dickens Amanya

As citizens of Hoima Oil City, we continue to take pride in the evolution and development of our homeland. Hoima is one of Uganda’s most strategically significant urban areas because of its centrality in the Oil and Gas sector. While much information about the city is now just a click away, thanks to the digital revolution of the 21st century, effective planning and resource allocation in Hoima still require deliberate, ground-level action.

Area-specific budget allocations have long generated excitement in selected communities. Personally, I was elated to see my former school, Parajwoki Primary School, prioritised in the FY2025/26 budget under the Urban Discretionary Development Equalisation Grant (DDEG), with an allocation of sh208.7 million. “Mwebale muno muno”, translated as thank you very much indeed.

This optimism is under threat, and it is dampened by the stark reality that Hoima Oil City will not receive any external financing this financial year from development partners like Baylor International (Uganda) and the Global Alliance for Vaccines and Immunisation (GAVI). These partners have in the past contributed sh90.9 million in FY2024/25. Apprehension abounds about their absence this year. Grapevine has it that this may be linked to funding suspensions by USAID between January and April 2025, as indicated in the Draft Budget Estimates FY2025/26.

Further concern arises from a significant 48.3% decline in Discretionary Government Transfers; that is, from sh5.4 billion in FY2024/25 to sh2.8 billion in FY2025/26. While Conditional Government Transfers increased modestly by 13%, and other Government Transfers rose by 7.7% (of which 70.1% was from the Uganda Road Fund), the city's resource envelope is potentially stressed and constrained.

Hoima Oil City, which retains the geographic boundaries of the former Hoima Municipality, spanning 228 square kilometres, faces major infrastructural challenges. The city boasts a road network of approximately 641 kilometres. On a sad note, only 4% (around 25 kilometres) is paved. A staggering 398 kilometres of earth roads are categorised as being in poor condition and require periodic maintenance if they are to be usable.

In FY2024/25, the city generated just sh2.2 billion in local revenue. This was a drop in the ocean compared to the sh7.2 billion it cost to construct each kilometre of paved road under a World Bank-funded project that covered the existing 25 kilometres. Realistically, without another major central government or donor-funded initiative, residents will have to wait indefinitely for significant road infrastructure upgrades.

Poor road infrastructure is a known deterrent to investment, especially when prospective investors are welcomed by erosion-prone access roads in areas like Kibati, Kiryateete,  Bujumbura, Kibingo, among others. Even most personnel working in Petroleum companies operating in the region prefer to dine and take abode in hotels near the paved roads of Kijungu area.

This has deleterious implications because it limits local revenue contribution from hotel taxes alone. Ironically, sectors crucial for stimulating local revenue and economic transformation, Private Sector Development and Digital Transformation, received zero development funding in the current budget. Of the sh65 million allocated to implementation of the City Development Plan, only 14% has been earmarked for actual development activities.

Equally troubling is the lack of attention to environmental management. Of the sh80.6 million allocated to this sector, only 19% was directed towards development, and nothing was allocated to the lower local governments. Similarly, the Community Based Services department, with a budget of sh379 million, had no allocations for lower local governments.

This leaves citizens uninformed about the state of their local environment, including soil health, water quality, and climate patterns, all of which are vital for programs like the GROW Project and the Parish Development Model. Instead, budget lines such as sh5 million for “special meals and drinks” and sh2 million for workshops and seminars are allocated under environmental programs, which raises on the misplacement of priorities.

The city’s healthcare system remains of critical concern. Both Hoima East and Hoima West Divisions lack a Health Centre IV, and the city continues to rely heavily on Hoima Regional Referral Hospital. With population growth spurred by oil-related activities and the upcoming Africa Cup of Nations (AfCON) 2027, the city urgently needs to have enhanced infrastructural development in all dimensions.

True socio-economic transformation hinges on improving citizens’ quality of life—through safe, well-maintained roads, accessible healthcare, and a clean, sustainable environment. To achieve this, Hoima Oil City must adopt a more integrated approach to planning and budgeting.

This includes developing a State of Environment Report, as required under Section 28 of the National Environment Act (2019), and formulating a City Climate Change Action Plan, in line with Section 8(1) of the National Climate Change Act (2021), which mandates each district to develop such a plan within one year of the National Climate Change Plan’s issuance.

For Hoima Oil City to fulfil its promise as Uganda’s oil capital and engine of economic growth, it must go beyond token allocations and embrace holistic, forward-looking planning and budgeting strategies. Anything less would be a betrayal of its potential and the aspirations of its citizens.

The writer is a Research Officer at the Advocates Coalition for Development and Environment (ACODE) and a resident of Kizooba cell, Kyesiiga ward, Hoima West Division, Hoima City.

Email:damanya@acode-u.org or dickensamanya@gmail.com