The mining sector has been growing over the years, numbers shared by the Minister of State for Minerals, Peter T. Lokeris, at a sensitization workshop on Uganda’s mining and minerals legal framework indicate.

The minister revealed that between 2003 and 2017, the Foreign Direct Investment in the sector rose from $5m to $800m. The minister also revealed that non-tax revenue (NTR) from license fees, annual mineral rent, and royalties significantly increased from approximately Shs1.8 billion in 2003 to Shs11.3 billion in the Financial Year (FY) 2022/2023.

The minister, quoting predictions contained in the National Development Plan III, indicated that the number of people employed in the mineral sector rise to 2.6 million in 2024/2025 and 1.6 million in 2017/2018. Uganda Vision 2040 envisions the minerals sector as a major driver of employment creation and GDP growth. 

Lokeris noted that planning and investing in mineral development should be undertaken to realise the sector’s vast potential and returns to the economy. These returns include direct revenue, job creation, and upward and downward linkages to other sectors of the economy including industrialisation, agriculture, and human capital development, he said.

Since 2003, the minister said: “As of 30th June 2023 we have granted 556 licences, these include 249 exploration licences, 8 retention licences, 48 mining Leases, and 76 location licences. This increase in licences in the mineral sector is accompanied by a corresponding increase in income and revenue from the sector.”

With significant investment realized in the sector, the government has also put in place laws, regulations and policies to facilitate the smooth management of the sector.

The section has the Mining and Mineral Policy for Uganda 2018, the Mining and Minerals Act 2022, the Mining (Licensing) Regulations 2019, and now the Mining and Minerals (Licensing) Regulations 2023.

The implementation of laws and policies is successful when it is understood, accepted, and supported by you, our most important stakeholders, the minister noted.