Overview:
Uganda's mining sector sees significant revenue growth, but transparency concerns persist over undisclosed contracts and inconsistent data reporting.
Kampala, Uganda – Uganda’s mineral sector has witnessed a significant surge in revenues, with the total value of mineral production jumping from 19.92 billion Ugandan shillings (approximately $5.3 million) in the 2020/2021 fiscal year to 202 billion Ugandan shillings (around $53.5 million) in 2021/2022.
This notable increase was highlighted in the country’s third Extractive Industries Transparency Initiative (EITI) report, which provides a comprehensive overview of the financial dealings within Uganda’s oil, gas, and mining industries.
The report reveals that 20 mining companies out of 558 active license holders accounted for a substantial 98.82% of the 202 billion Ugandan shillings in mining revenues during the reporting period.
Limestone was the standout performer, with its value skyrocketing from 223 million Ugandan shillings (around $59,000) in 2020/2021 to 93 billion Ugandan shillings (approximately $24.7 million) in 2021/2022.
However, despite the positive financial outlook, the EITI report highlights ongoing challenges, particularly in the reconciliation of data between companies and government agencies.
Gloria Mugambe, head of Uganda’s EITI Secretariat, explained that while much of the data comes from government agencies like the Uganda Revenue Authority (URA), verifying these figures with companies has proven difficult due to incomplete or delayed submissions.
The report also notes that the government has not yet fully disclosed contracts it has signed with mining, oil, and gas companies, an essential part of the EITI’s standards.
Mark Robinson, Executive Director of the EITI Board, emphasized the importance of contract disclosure, stating that it is a critical step in ensuring transparency and curbing corruption in the sector.
Civil society organizations have also criticized the government’s lack of transparency, with Siragi Magara from Oxfam-Uganda stressing that the government must prioritize making these agreements public, as they are ultimately in the interest of Ugandans who own the country’s natural resources.
The growth in Uganda’s extractive sector is crucial for the country’s long-term economic development, with the mining sector seen as a key contributor to the government’s ambition of transforming Uganda’s economy from its current size of $53 billion to $500 billion in the next 15 years.