Col. Nakalema engages mining sector stakeholders to shape Uganda’s mineral future

KAMPALA, November 1, 2024 — The Head of the State House Investors Protection Unit (SHIPU), Col. Edith Nakalema, has urged stakeholders in Uganda’s mining sector to protect and promote the industry, highlighting its potential to drive economic growth, industrialisation, job creation, and increased foreign exchange earnings.

Speaking during consultative meeting on responsible mineral sourcing and investor protection held at SHIPU offices in Kampala, Nakalema said it was an opportunity for stakeholders to address challenges, seize opportunities, and establish responsible practices that align with international standards. The meeting included senior government officials and representatives from the private sector.

Nakalema noted that SHIPU has received numerous complaints regarding fraud and other challenges faced by investors in the mining sector, stating that such meetings are essential for collaboratively resolving these issues. “We are inspired by your commitment to discussing lasting solutions for better utilisation of our mineral resources,” she stated.

She reiterated SHIPU’s mission to coordinate efforts among stakeholders to create a secure investment landscape in Uganda, particularly in the mining sector. “His Excellency the President established SHIPU to protect both domestic and foreign investors from unnecessary delays and exploitation by fraudsters. We have registered several complaints related to fraud in gold trade, and we are working with anti-corruption agencies to address these concerns,” Nakalema explained.

Additionally, she proposed that the government should incentivise responsible mineral sourcing practices and implement measures to protect investors, while also elevating the role of Artisanal and Small-Scale Mining [ASM] to align with national development goals. “I urge everyone to commit to this cause and work together to safeguard Uganda’s reputation as a secure and thriving investment destination,” she asserted. “By implementing the solutions discussed today, we can transform challenges into significant opportunities that benefit all Ugandans.”

Nakalema also suggested establishing a technical steering committee to streamline the mining sector through guidance and technical expertise.

Moses Kaggwa, Director of Economic Affairs at the Ministry of Finance, Planning, and Economic Development, revealed the government’s goal to grow Uganda’s economy ten-fold to US$ 500 billion within the next 10 to 15 years. He outlined the key areas identified for this growth, termed ATMS: Agro-industrialization, Tourism, Minerals and Gas, and the Science/Knowledge Economy. Kaggwa emphasised the importance of minerals in driving economic growth and assured that the government has formed the Uganda Mining Company, which will serve as the country’s investment arm in the mining sector.

Dr. Joseph Muvawala, Executive Director of the National Planning Authority, advised that achieving ten-fold economic growth requires a shift in strategy. “We must add value to our products, adopt new technologies, and have a strategic plan. If we aim for faster growth, we need to focus on minerals,” he said. He expressed concern that the minerals sector is often neglected in favor of petroleum, noting its critical importance for Uganda’s future.

Agnes Alaba, Commissioner of Mining at the Ministry of Energy and Mineral Development, affirmed Uganda’s rich mineral potential and the need for more exploration to determine the country’s reserves. She highlighted the ministry’s focus on prioritizing policies, regulations, and laws to regulate the mining sector effectively.

Prof. Gerald Karyeija, a Government Policy Analyst, called for the establishment of a mining school to train individuals in technical skills and expertise. He emphasised that the benefits of the sector should be collective, improving the lives of all Ugandans, especially those living in poverty. “Mineral wealth should be public wealth, benefiting all citizens. We need transparency and accountability in the sector,” he stated.

CP James Ruhweza, Deputy Director of Operations Services for the Uganda Police, assured stakeholders of continued support in protecting the mining sector. ACP Tusingirwe Julius Caesar, Commander of the Police Mineral Protection Unit, acknowledged the numerous fraud cases reported, particularly in gold trade, but assured that these issues are being addressed.

Special guest Fred Sapong, CEO of Oheneba Poku Foundation in Ghana, advised Uganda to learn from Ghana’s strict regulations in the mining sector, which have facilitated significant benefits for the country. “In Ghana, gold transactions are regulated, requiring traders to register and conduct business through banks, eliminating black markets,” he explained.

Patricia Gulyetonda, Head of Reserves and Investment Management at the Bank of Uganda, assured stakeholders that the Central Bank is committed to collaborating with them to ensure the sector is effectively regulated for greater gains.

Humfrey Asiimwe, CEO of the Uganda Chamber of Mines and Petroleum, expressed gratitude to Nakalema for organizing the meeting, stating, “This is a step in the right direction.” The meeting also included representatives from the State House Anti-Corruption Unit, Uganda Civil Aviation Authority, Uganda Revenue Authority, Uganda Manufacturers Association, among others.

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