Uganda may be on the verge of an oil boom which, if managed properly, could lift a generation out of poverty. However, a history of high-level corruption scandals and a range of early warning signs in the oil industry suggest that without urgent action, this potentially transformational oil money could be lost. This paper argues that the role of Uganda's donors in influencing this situation has been largely overlooked.
With limited time before revenues start to flow, donors should use their leverage by linking aid to improvements in transparency and accountability. The next few months will be a critical test of their willingness to challenge the status quo and an indicator of the future direction of development aid.