Uganda to receive US $6.8M to boost mining sector

The European Union (EU) and the German government have committed US $6.8 million to support the growth of Uganda’s mining sector through the Sustainable Development of the Mining Sector Project.

The initiative, introduced at Speke Resort, aims to make the sector more competitive and sustainable while increasing its appeal to investors. The project will focus on improving oversight, encouraging value addition, and ensuring responsible mining practices to strengthen Uganda’s position in the global mining industry.

A key goal of the project is to formalize artisanal and small-scale mining (ASM). Formalizing the sector will help increase government revenue, create better jobs, and improve compliance with regulations. By supporting ASM operators with training and resources, the project aims to integrate them into the formal economy, improving overall sector transparency and governance.

Mining sector in Uganda

The project also seeks to enhance Uganda’s mineral processing capacity. Currently, most of Uganda’s mineral wealth is exported in raw form, limiting the country’s economic gains. The initiative will support local processing by facilitating access to financing for equipment and training in value addition. This approach will enable Uganda to capture more value from its mineral resources and strengthen the domestic supply chain.

To improve regulatory oversight, the initiative will provide technical training and modern equipment to government agencies. Aligning Uganda’s mining sector with international standards, such as the OECD Due Diligence Guidance and the EU Conflict Minerals Regulation, will help attract credible investors and build confidence in the sector. Stronger regulations and compliance will also create a more stable and predictable business environment.

Uganda’s mining sector has struggled in recent decades, with its contribution to export earnings falling from 30% in the 1950s and 1960s to just 0.8% today. Challenges such as weak legislative frameworks, limited geological data, and inadequate foreign investment have hindered growth. However, with the right policies and increased investor confidence, Uganda could unlock its mining potential and make the sector a key driver of economic growth.