Uganda is courting global investors to tap into its estimated $4 trillion to $12 trillion mineral wealth, as the country seeks to increase mining’s contribution to the economy and position itself in the fast-growing critical minerals market.
Uganda made the investment pitch on Wednesday at the 24th Africa Down Under Conference in Perth, Australia, where governments, mining companies, financiers, investors and policymakers are meeting to explore opportunities in Africa’s resources sector.
The conference has attracted Ugandan officials from the country’s diplomatic mission in Australia, Member of Parliament for the Elderly Ofwono Opondo, officials from the Ministry of Energy and Mineral Development and representatives of the Uganda Chamber of Mines and Petroleum.
Mr Humphrey Asiimwe, the chamber’s Chief Executive Officer, told delegates that Uganda’s mining industry is developing rapidly, with significant mineral deposits still awaiting exploration.
He said the country has opportunities across gold, iron ore, graphite, rare earths, copper and cobalt, among other minerals.
“Projects such as Makuutu also provide a tangible connection between Uganda and Australia’s critical-minerals industry,” Mr Asiimwe said.
The Makuutu project in eastern Uganda is one of Uganda’s notable rare-earth mineral prospects and has attracted interest from Australian-linked mining interests.
The global market for critical minerals is projected to exceed $770 billion by 2040, driven largely by the transition to green energy and rising demand for minerals used in technologies such as electric vehicles, batteries and renewable-energy systems.
Despite its mineral potential, Uganda’s mining and quarrying sector currently contributes about 2.2 per cent to GDP.
Under the National Development Plan IV, government aims to raise the sector’s contribution to 7.9 per cent by the 2029/30 financial year.
Mr Asiimwe said Uganda was offering investors an increasingly structured environment in which to assess mining opportunities.
He cited geological data, clarity around licences and ownership, feasibility studies, infrastructure requirements, environmental and social assessments, capital and operating cost estimates, production projections and potential markets or off-takers.
Such information, he said, enables investors to better assess the risks and returns before committing capital to mining projects.
Uganda’s improving regulatory framework, growing infrastructure and strategic location within East Africa also strengthen its investment case, he said.
Its proximity to the mineral-rich Great Lakes region and major regional markets creates opportunities beyond extraction, including logistics, mining services, processing and cross-border mineral value chains.
Seeking private capital
Mr Asiimwe said government was investing in infrastructure to support the sector but called for greater private-sector participation to unlock the country’s mineral potential.
Uganda’s High Commissioner to Australia, Ms Dorothy Hyuha, said the Africa Down Under conference offers an important platform for connecting Uganda’s mineral opportunities with international capital and expertise.
She pointed to Uganda’s relations with the Australian Federal Government, the Government of Western Australia, mining industry players and the wider African diplomatic community as an advantage in opening doors for Ugandan projects.
“These relationships can connect project owners and government agencies with mining companies, investors, financial institutions and technical experts,” Ms Hyuha said.
The diplomatic mission is therefore seeking to turn Uganda’s participation in international forums into commercial relationships that can advance investment in the country’s mining sector.
Regional approach
Mr Opondo called for African countries to consider a bloc approach when participating in major international mining and investment forums.
He argued that countries with neighbouring mineral deposits, shared transport corridors and interconnected markets could gain more by presenting complementary opportunities rather than competing individually for international capital.
“For instance, where Uganda may lack a competitive advantage in one part of the mining value chain, Kenya or Tanzania could provide the required capacity,” he said.
Such an approach, he said, could enable East African countries to offer investors more complete value chains covering exploration, extraction, processing, transportation and access to regional markets.