Uganda: Experts Blame Mineral Wealth Mismanagement for Economic Instability

What the report says

Ugandan extractives experts say weak management of the country’s mineral sector is contributing to economic instability, including exchange-rate pressure and inflation, according to a report from The Independent (Kampala) carried by AllAfrica. The discussion followed the 7th National Forum on Business and Human Rights in Uganda, organised by the Ministry of Gender, Labour and Social Development in Kampala.

Several speakers argued that Uganda has laws and policy plans for mining, but enforcement, regulation and community participation remain too limited. Dr. Frank Mugyenyi of the Minerals Africa Development Institution said the sector has focused too heavily on earning revenue rather than building domestic value addition, especially in gold. He pointed to the continued export of refined gold despite the absence of a strong local manufacturing base for finished products. He also said mining communities have seen too few jobs and too little direct benefit.

Government representatives defended the current approach. Morris Tabaaro, a Regional Inspector of Mines, said measures such as limits on raw gold exports, the Bank of Uganda’s gold purchases and investment incentives had helped attract more investors and expand refining. He said the policy balance must protect both national interests and investor confidence.

Other experts called for faster creation of a national mining authority, better data on gold production and exports, improved support for artisanal miners, and a review of royalties and taxes. The article also noted concerns that mining benefits are not reaching communities such as those in Karamoja, where poverty remains high despite mineral wealth.