The European Union (EU) and the German government have pledged Shs 25 bn to support Uganda’s mining sector, aiming to enhance sustainability, competitiveness, and investment attractiveness.
The commitment was announced at the launch of the Sustainable Development of the Mining Sector Project at Speke Resort Munyonyo. Speaking at the event, Jan Sadek, the EU Ambassador to Uganda, emphasized the need for reforms to unlock the sector’s full potential.
“Uganda ranks 68th globally in mining investment attractiveness, which shows there is room for improvement. This project is designed to make the sector more sustainable, competitive, and aligned with international standards,” Sadek stated.
The initiative will focus on formalizing artisanal and small-scale mining (ASM), strengthening regulatory frameworks, promoting responsible sourcing, and supporting value addition.
Sadek underscored the importance of formalizing ASM, explaining that it would improve oversight, create decent jobs, and boost government revenues. “We are supporting artisanal miners to operate within the law, which will not only improve oversight but also create decent jobs and increase tax revenues,” he noted.
The project will also support mineral processing and value addition to ensure Uganda moves beyond raw extraction. “For Uganda to benefit from its mineral wealth, we must go beyond extraction and invest in processing.
This project will facilitate access to finance for mineral processing equipment and skills development for economic actors,” Sadek added. To enhance regulation, the initiative will provide training, equipment, and support to oversight agencies, ensuring compliance with value addition requirements.
It will also align Uganda’s mining sector with global standards such as the OECD Due Diligence Guidance, the EU Conflict Minerals Regulation, and the Great Lakes Regional Certification Mechanism to attract credible investors.
,Minister of Energy and Mineral Development Dr. Canon Ruth Nankabirwa reaffirmed the government’s commitment to making mining a key driver for economic growth. “We are determined to unlock Uganda’s immense mining potential and address existing challenges such as informality and limited value addition. This partnership with the EU and Germany is a step in the right direction,” Nankabirwa stated.
She acknowledged the mining sector’s declining contribution to the economy. According to a 2022 Legal Alert report, the sector accounted for 30% of export earnings in the 1950s and 1960s but has since dropped to just 0.8%, due to weak legislative frameworks, limited geological data, a largely informal sector, and inadequate foreign investment.
“We cannot keep bragging that Uganda is rich in minerals while failing to utilize them. The big question is: so what?” she added.
David Otieno from the Ministry of Energy highlighted that Uganda’s transition to a middle-income economy hinges on resource development.
“The Mining and Minerals Act 2022 supports formalization and value addition, but challenges remain. Issues such as limited geological data and a weak investor base must be addressed,” he noted.
The new project seeks to tackle these challenges and position Uganda as a viable investment destination in the global mining industry. There is huge untapped potential. With the right policies and investor confidence, Uganda can transform its mining sector into a key pillar of economic growth.
