The Government of Uganda is intensifying efforts to unlock the full potential of the country’s mineral sector, targeting a threefold increase in its contribution to GDP to 7.9% under the Fourth National Development Plan (NDP IV).
The initiative also aims to generate mineral revenues of UGX 750 billion, reinforcing the sector’s role as a strategic driver of economic growth.
The targets were central to discussions at the 2026 Annual Tax Dialogue, convened by the Uganda Chamber of Energy and Minerals (UCEM) in Kampala.
The event brought together policymakers, investors, and sector experts to address fiscal and regulatory barriers affecting investment and operational efficiency.
Currently, Uganda’s mining sector contributes less than 2.5% to GDP, despite abundant mineral deposits including gold, copper, cobalt, iron ore, phosphates, limestone, rare earth elements, and tin.
According to the Ministry of Energy and Mineral Development, more than 50 mineral types remain underexploited due to inconsistent policies, limited geological exploration, and infrastructure constraints.
UCEM Chief Executive Officer Humphrey Asiimwe said that fiscal predictability is critical to attracting both domestic and foreign investment.
“Investors require certainty to commit capital in the long term,” he said. “These dialogues provide a platform to identify tax provisions that create friction and propose tangible policy reforms that drive sector growth.”
Asiimwe noted that predictable fiscal and regulatory regimes would enable capital-intensive projects, including mineral exploration, extraction, and domestic processing.
“Informed policy decisions will accelerate local beneficiation, create employment opportunities, and maximize the value of Uganda’s mineral resources,” he added.
The mining sector has already demonstrated growth potential, particularly in gold exports.
Data from the Uganda Bureau of Statistics shows that gold exports have generated over UGX 8 trillion (Euro 2 billion) in foreign exchange in recent years, ranking the mineral among Uganda’s top export commodities.
However, much of this wealth is exported as raw material, limiting the country’s capture of value-added benefits.
Stakeholders also highlighted operational and regulatory challenges. Tony Olanya, a natural resources consultant, cited delays in licensing as a key constraint.
“The documentation process is cumbersome and involves unnecessary bureaucracy,” he said. “Our engagements with government should reflect the realities on the ground, not just public relations exercises.”
Olanya added that unlicensed mining operations currently outnumber licensed ones, resulting in significant revenue leakage.
“This indicates lost financial value for the country,” he noted, stressing the need to formalize artisanal and small-scale mining, which employs an estimated 300,000 miners in gold-rich regions such as Mubende, Busia, and Karamoja.
David Sebaggala, Senior Inspector of Mines at the Ministry of Energy and Mineral Development, explained that mineral royalties collected from licensed companies are managed by the Uganda Revenue Authority.
Under current legislation, 15% of royalties are allocated to local governments in mining areas, with the remainder remitted to the central government and other statutory beneficiaries.
Stakeholders, however, noted that Uganda still lacks a robust framework for strategically managing and investing these revenues.
Beyond fiscal and licensing issues, discussions addressed sustainability and environmental compliance, including the enforcement of Environmental and Social Impact Assessments (ESIAs), green financing, and carbon reduction initiatives in mining operations.
The mining sector is a key pillar of Uganda’s Ten-Fold Growth Strategy, which targets a $500 billion economy by 2040. Industry leaders argue that with coherent policy reforms, Uganda can enhance domestic processing, increase export earnings, attract investment, and create sustainable jobs.
According to Asiimwe, informed and predictable policy moves will unlock greater value from Uganda’s mineral resources and position the sector as a key engine for national development.
