Uganda’s mineral production value increased to Shs 248.5 billion in the financial year 2022/23, representing a 23 per cent rise compared to the previous year, indicating ongoing development in the sector.
This announcement was made last week during the presentation of Uganda’s Fourth Extractive Industries Transparency Initiative (EITI) Report findings. The report attributes this growth to substantial increases in the production of minerals such as volcanic ash, limestone and marble, among others.
Companies like Sino Minerals Investments, Hima and Tororo Cement Limited accounted for 89 per cent of the total production in the sector. However, there were noted declines in the production of gold, wolfram and kaolin.
Additionally, the report disclosed that the mining and quarrying sector contributed Shs 2,685.76 billion in revenues, representing 1.47 per cent of the national GDP. The oil and gas sector remains in the pre-production phase and did not make a significant contribution to GDP, with initial oil production anticipated in 2026.
During the report’s launch, Amos Lugoloobi, the state minister for Planning, emphasized the report’s importance in strengthening Uganda’s domestic revenue systems, especially as external concessional financing diminishes.
He highlighted that the EITI framework has been instrumental in closing administrative gaps, reducing leakages, curbing illicit financial flows, and improving the accuracy of revenue forecasting, particularly for future oil and gas earnings.
“We must harness every possible source of domestic revenue,” he stated, adding, “Transparent disclosure of payments and receipts has enhanced public confidence and strengthened the integrity of the extractives value chain.”
The minister underscored that transparency and good governance are essential to achieving the objectives of NDPIV and Uganda Vision 2040. Moses Kaggwa, the chairperson of the EITI multi-stakeholder group, emphasized that the transparency initiatives have effectively dispelled longstanding public rumors concerning Uganda’s extractive sector.
These initiatives have particularly addressed fears that oil was being clandestinely transported out of the Albertine region.
He noted, “Prior to this process, there were widespread public speculations suggesting that helicopters seen heading to the Albertine region were secretly transporting oil out of the country.”
Kaggwa further highlighted the positive impact of community engagement under the EITI framework in enhancing public understanding and trust.
“This interaction with the communities has been instrumental in mitigating the various rumours circulating about the extractive industry,” he stated.
Dr Arthur Bainomugisha, a representative from the ministry of Energy and Mineral Development, underscored significant structural changes within Uganda’s extractive sector, citing increased state participation and enhanced industrial capacity.
“The inauguration of the Uganda National Mining Company board in 2024 marked a pivotal moment for government-led investment in minerals,” he remarked.
Dr Bainomugisha also disclosed that Uganda signed its first-ever Mineral Production Sharing Agreement in March 2025 for the development of copper and cobalt at Kilembe Mines, which will produce 99.99 per cent pure cobalt metal.
“This development signals a growing wave of large-scale industrial investments poised to boost manufacturing, create jobs and stimulate local economic growth,” he added.
