Uganda hosts more than 50 mineral types, according to the country’s latest geological data from the Energy ministry. These include 31 million tonnes of gold, 560 million tonnes of iron ore, and 7.8 million tonnes of copper.
Added together (ignoring costs, losses, taxes, non-recoverable portions), the total ‘paper’ value for these minerals is at least $4-5 trillion, according to current market financial data.
The Finance ministry says mining can help grow Uganda’s economy from $54b (Shs186 trillion) today to 10 times bigger in the next 15 years. Progress, however, is very slow. Mining contributes only two percent to the country’s total gross domestic product (GDP).
Decades ago, big projects like the Kilembe copper mine were at the heart of the sector, producing more than 217,000 tonnes of copper along with cobalt and phosphates. Other mines for tungsten, tin, and niobium also thrived in places like Kitaka, Mwerasandu, Kirwa, and Ruhizha between the 1930s and 1960s. But by the early 1980s, this mining boom had collapsed.
Kilembe shut down in 1982 as machines broke down, costs rose, inflation hit hard, and copper prices fell globally. Political instability was also part of it. The other mines also closed after mineral prices dropped, government support was cut, infrastructure declined, and investors pulled out. With large-scale mining gone, artisanal and small-scale mining (ASM) became the backbone of the sector.
Today, more than 80 percent of Uganda’s miners work in ASM. Between 2014 and 2021, ASM generated about Shs713.5m in revenue.
But ASM faces serious problems. Miners often use simple, outdated tools that waste resources, damage the environment, and reduce government revenue. Working conditions are unsafe, and most miners lack training, finance, and proper equipment. For many families, ASM is a way to survive, but it keeps the mining sector stuck at a very low level. To address this, the government introduced the Mining and Minerals Act (2022) and the Licensing Regulations (2023)-the first serious attempt to formalise ASM.
Phoebe Atukunda, a research fellow in extractives with the Advocates Coalition for Development and Environment (Acode), describes it as ‘a progressive law that actually aligns with the International Conference on the Great Lakes Region (ICGLR) protocol on illegal exploitation of minerals, the Mining Vision 2040 as well as Uganda being a member of the Extractive Industries Transparency Initiative (EITI).’
But on the ground, implementation is still difficult. The licensing process was designed for larger, semi-mechanised operations; not small artisanal miners. To get even a small-scale licence, miners must pay for costly feasibility studies and full Environmental and Social Impact Assessments (ESIAs).
In Uganda, the official licensing scheme lists an application fee of Shs10m for small-scale licences. The actual cost of the ESIA + feasibility work, in reality, can run into the hundreds of thousands of dollars-far beyond what most artisanal miners can afford.
Women-who make up between 15 and 90 percent of workers at different sites-face even greater financial and social barriers, despite gender equality being part of the law. As a result, many miners remain outside the formal system, relying on informal leasing and title transfers that weaken oversight.
‘We are working closely with the National Environmental Management Authority (Nema) to address the cost of the studies and reduce the time it takes to obtain approval,’ says Irene Batebe, the Energy ministry Permanent Secretary.
To speed things up, the ministry’s Health, Safety, and Environment Department also helps Nema review applications. Still, gaps remain. There are no clear rules on how artisanal miners and big companies can share land, leading to conflicts.
With support from the planetGOLD project, the government has helped miners form cooperatives, and more than 10 have already been formalised. Still, exploration-the foundation of large-scale mining-remains underfunded; even though the mining budget is set to rise to Shs51.2b in the 2025/26 financial year.
This is a drop in the ocean. It is also far less than the Shs68.8b lost in gold tax leakages and Shs439b in unpaid mineral rents last year, according to the Auditor General’s 2023/2024 report.
Eric Odongo, a development economist warns: ‘Without consistent funding for exploration, Uganda risks knowing it is rich without ever becoming rich. Artisanal mining will never create the kind of value needed for real transformation; only structured, well-funded exploration and development can do that.’
The missing link
Geologists agree that exploration is the bedrock of any serious mining industry. The government has tried to enhance its feeble presence by setting up an exploration unit and building laboratories, but the resources remain too thin for a sector intent on growing its contribution to the economy from $1.1b (Shs3.7 trillion) today to $20b (Shs68.9 trillion) by 2040. The government has started new investments.
In 2025/2026, the Mineral Development budget aims to fund work like measuring mineral deposits, issuing licences, developing copper, iron ore and phosphate projects, and setting up mineral markets, processing centres, and training hubs. This falls under the Energy ministry’s Shs2.9 trillion budget, of which Shs1.586 trillion goes to the energy and mineral sector, including mineral exploration.
The Uganda National Mining Company (UNMC), a state-owned enterprise, has also been capitalised-up to Shs500b over five years-to manage the government’s commercial stake in projects.
‘We have strengthened enforcement mechanisms to ensure remittance of non-wage revenue from minerals.
Any remaining gaps continue to be addressed. Non-Tax Revenue from minerals rose to Shs39.3b in 2024/2025, up from Shs25.2b in 2023/2024, and Shs11.3b in 2022/2023,’ Batebe discloses, adding that exploration remains a priority as new partnerships with the European Union’s PanAfGeo project to expand survey work attest.
Under PanAfGeo+, Uganda has a pound 3.5m (Shs14b) ‘country window’ aimed at strengthening geological data, upgrading labs, training geoscientists, and creating a national minerals database. At the same time, the government is trying to bring more order to mineral trade.
New Mineral Markets and Buying Centres are being rolled out to formalise transactions, improve transparency, and strengthen tax collection.
‘These markets will regulate the buying and selling of minerals, empower artisanal miners, and curb illicit trade,’ Batebe explains. Yet watchdogs remain concerned. The Uganda Extractive Industries Transparency Initiative (UGEITI) 2022/2023 report scored the mineral development programme just 60.9 percent, citing underfunding and an overreliance on artisanal mining.
‘We are starving exploration while haemorrhaging revenues downstream. If we invested just a fraction of the money we lose into exploration, Uganda could build a mining industry that pays for itself,’ Odongo stresses.
Exploration is the most expensive and riskiest stage. Companies are rarely willing to spend millions drilling unless they already have strong evidence that valuable minerals are there. That is why, in most mineral-rich countries, governments step in first, paying for surveys, maps, and data that make investors feel safer.
In Uganda, this step has been missed. The country has many minerals, but most of them remain only a promise on paper.
As Richard Kaijuka, former Energy minister and chair of the Uganda Chamber of Mines and Petroleum, notes, Uganda’s minerals remain ‘underexploited,’ and with proper investment the sector’s share of GDP could rise well above the current 2.2 percent.
The 2024 UGEITI validation report shows this clearly. Uganda scored well in outreach and engagement (78.5 percent), but its overall score dropped to 67.5 percent because contracts were not clear and reliable data was missing.
Mineral Exploration Fund
That is why there is an idea of a Mineral Exploration Fund – a special pool of money set aside only for exploration. Instead of depending on government budgets that change with politics, the Fund could be supported by a 1.0 percent levy on all mineral exports, whose total value is estimated at around $3b (Shs10.3 trillion) annually, driven primarily by gold, according to the latest data compiled by Bank of Uganda. This would guarantee steady funding. If managed openly and fairly.
‘A ring-fenced fund is not just about money; it is about credibility. Investors respond when they see a government systematically de-risking exploration. It signals seriousness, discipline, and a long-term vision,’ Odongo observes.
Government insists exploration is already a priority. Money from the Consolidated Fund continues to support surveys and studies. ‘We have also secured $12m (Shs41.3 trillion) from development partners which has been earmarked to support exploration and quantification,’ says PS Batebe.
But for a Mineral Exploration Fund to work, it must be protected from politics and business capture.
‘Working together with other relevant Ministries, Departments, and Agencies …, this [Energy and Mineral development] Ministry continues to strengthen systems to provide security of tenure to investors and guarantee the transparent management of mineral revenues,’ notes PS Batebe.
This shows that success will not depend only on how much money is put into the Fund, but also on whether its management convinces both investors and citizens that resources will be handled openly and fairly.
Other countries prove this can work. In South Africa and Australia, small protected funds for exploration unlocked big private investments and boosted their mining industries.