Ethiopian International Journal of Multidisciplinary Research 2015; 2(4): 16 -24. 16 www.eijmr.org ISSN: 2349- 5715 (Online) ISSN: 2349- 5707 (Print) Uganda -A Country yet to Achieve its Entity : Discovery of Oil and Future Prospects Khurram Ajaz Khan Lecturer-Department of Commerce and Business Administration International School of Business and Technology, Kampala, Uganda, Africa ABSTRACT: Once it was thought that Uganda could feed the whole of Africa if it was commercially farmed. Since Independence (1962) the country is struggling to achieve the status of developing nation. The country blessed by god but devastated by human being, Uganda has great potential, and it appeared poised for rapid economic growth and development. After seen the atrocities on masses, massacres, mutiny and economically pathetic situation of people god has granted oil reserve few years back… that too so huge, even World Bank in his report mention that oil production will soon change the Uganda’s economic outlook. Despite all odds at present the country is able to make GDP rate between 6-7 percent but struggling to cope with galloping inflation and interest rate. An economy largely dependent on agriculture and the domestic market, but still it is strongly predicted that Uganda will soon make place among the top 50 global oil exporters, this presents an exciting opportunity for the nation. By 2015 Uganda’s export revenue could jump from USD $2billion to $4 billion or higher. The amount of foreign direct investment is set to skyrocket as everyone positions themselves to grab a piece of the lucrative pie. Uganda is now coming to a very crucial crossroad, and the next five years will determine whether Uganda can become the first African nation to utilize oil to promote peace, prosperity and national development. Government of republic of Uganda has been continuously framing and implementing various economic and financial reforms to enhance the pace of economic growth and development of the country since 1987. Therefore this paper will try to investigate the present status and future potential of Ugandan economy, role of government in economic and social development, especially the scope of oil discovery and how it can enhance Uganda’s sustainability with world competitiveness. Key words: Economic development, PEPA 1985, Oil discovery, World Bank and Uganda Introduction Uganda a small open economy in sub-Saharan Africa, one of the fastest growing economies in the continent and among the most successful countries when it comes to reducing poverty and making progress towards other millennium development goals. Uganda also widely regarded as one of the most ardent economic reformers in the developing country (World Bank 2007, Dijkstra and van donge, 2001).Uganda was under the colonies of British till October 1962. Uganda’s post- independence era has been marked by extended periods of turbulence, brutality and authoritarian rule by several very sinister leaders. Under present government many economic reforms ushered and building an era of solid social and economic growth based on continued investment in infrastructure, improved incentives for production and exports, lower inflation, better domestic security and living standard. Need and scope of the study With the discovery of oil in Uganda, hope for the fast economic and social development once again coming back on track, as government of Uganda did remarkably in 1990s and 2000s beginning but unable to sustain continuous economics