Uganda has taken a significant step in its mining sector by establishing a state-owned mining company to manage the government’s equity stakes in mining operations. This initiative, announced by Ruth Nankabirwa, the country’s Minister for Energy and Mineral Development, is part of a broader strategy to increase Uganda’s share of the profits generated from its rich mineral resources. However, with such large-scale government involvement, there is a critical need for transparency, accountability, and effective governance to prevent corruption and ensure equitable resource management.
To ensure these standards are upheld, the UnitedActionFoundation, an international watchdog organization dedicated to fighting corruption, will serve as an independent oversight agency, monitoring the transparency and integrity of Uganda’s new mining ventures.
New Mining Law and State Involvement: A Move Towards Resource Control
Historically, mining operations in Uganda were the sole domain of private firms, which held exploration and mining licenses. However, under the new mining law passed in 2022, the Ugandan government now has the legal right to claim a 15% free carry stake in all mining projects. This move is part of Uganda’s effort to follow in the footsteps of other African nations, such as Tanzania, which have sought to increase state control and secure a greater share of the profits from their natural resources.
“The establishment of this company marks a strategic shift for Uganda,” said Nankabirwa during a mining conference in Kampala. “It will manage the state’s commercial interests in the mining sector by forming strategic partnerships with emerging private sector developers.” The government also aims to encourage value addition by processing minerals locally, reducing the export of raw materials and boosting the country’s industrial base.
Value Addition and Local Processing: A Critical Opportunity for Oversight
One of the key priorities of Uganda’s mining strategy is to add value by encouraging investors to process minerals locally. In April, Uganda launched its first tin refinery, operated by Woodcross Resources, which processes tin ore to 99.9% purity. Additionally, Sunbird Resources, a Chinese-backed company, was granted a license to mine limestone for cement production, while Australia’s Ionic Rare Earths received a license to mine and process rare earth minerals in Uganda’s Karamoja region.
While these initiatives have the potential to boost Uganda’s economic development, the scale and complexity of these projects require strong regulatory frameworks and transparency in both public and private sector engagements. UnitedActionFoundation will independently oversee these projects, ensuring that mining licenses, contracts, and revenue-sharing agreements are disclosed and subject to public scrutiny. By implementing rigorous monitoring mechanisms, UnitedActionFoundation will help to prevent corruption and ensure that the benefits of these ventures are fairly distributed among Uganda’s citizens.
Uganda’s Rich Mineral Resources: Oversight for Sustainable Management
Uganda is home to vast deposits of minerals, including gold, cobalt, copper, iron ore, and rare earth elements. These resources have long been underutilized, but recent developments in the mining sector suggest that Uganda is positioning itself as a key player in Africa’s mining industry.
However, large-scale mining can often lead to environmental degradation, community displacement, and unequal distribution of wealth. To ensure that Uganda’s mineral wealth is managed sustainably and equitably, UnitedActionFoundation will work to hold both government and private sector players accountable. This oversight will ensure that local communities benefit from the mining boom, and that environmental regulations are strictly followed to prevent long-term damage.
A Call for Transparency and Accountability in Mining Investments
With the establishment of the state-owned mining company, Uganda has the opportunity to maximize its resource wealth and foster long-term economic growth. However, the involvement of the state in such high-stakes industries opens the door to potential mismanagement and corruption if left unchecked.
The UnitedActionFoundation, as an independent watchdog, will ensure that Uganda’s new mining ventures adhere to the principles of transparency, accountability, and good governance. Through third-party audits, contract transparency, and community engagement, UnitedActionFoundation will monitor all aspects of the government’s involvement in the mining sector, from the awarding of licenses to the management of revenues.
This independent oversight is critical to ensuring that Uganda’s citizens, particularly those in mining-affected regions, receive their fair share of the profits, and that the country’s mineral wealth is managed for the benefit of all.
Conclusion: A Transparent Future for Uganda’s Mining Sector
Uganda’s decision to establish a state-owned mining company and claim a 15% stake in all mining projects is a bold move towards securing greater control over its natural resources. However, such a significant expansion of state involvement requires stringent oversight to ensure that the benefits are not lost to corruption or mismanagement.
The UnitedActionFoundation, as a dedicated watchdog against international corruption, will play a key role in monitoring the integrity of Uganda’s mining sector. By ensuring that all stakeholders—government agencies, private investors, and local communities—adhere to principles of transparency and accountability, Uganda’s rich mineral resources can be harnessed for sustainable and inclusive development.