KAMPALA, July 14, 2025 — The Uganda Chamber of Mines and Petroleum [UCMP] is moving to formalise the country’s vast network of artisanal miners as part of a broader strategy to position the mining sector at the heart of Uganda’s economic transformation.
According to Humphrey Asiimwe, the Executive Director of UCMP, Uganda is home to over 600,000 artisanal miners, the majority of whom operate in gold-rich districts such as Mubende, and Busia.
Asiimwe stressed the need for formalisation, citing improved sector oversight, increased access to financing and technology, and enhanced productivity as key benefits.
“This is a demographic that must be prioritised. We need to strengthen our artisanal and small-scale mining industry through formalization, introducing banking systems, modern technology, and financial support. That way, they can continue mining while also engaging in value addition,” Asiimwe said.
He noted that artisanal miners currently contribute an estimated Shs 3.7 billion to the gold sector. This figure, he argued, could rise significantly with access to the right facilities and support mechanisms.
Untapped mineral wealth
Asiimwe also revealed findings from a recent geological survey which confirmed that Uganda holds coal reserves valued at over USD 3.7 billion. He highlighted the urgent need for further exploration to quantify the country’s full mineral potential.
“Uganda has at least 58 different mineral types, based on the latest geological data,” he said. “We need to develop a homogenous geological map through comprehensive geomagnetic surveys to attract both local and foreign investment.”
Government support and strategic investments
The formalisation of artisanal miners aligns with Uganda’s broader development agenda under the National Development Plan IV, which prioritises value addition in minerals, as well as in oil and gas. The government has earmarked Shs 850 billion to support the sector.
A key part of this plan includes capitalising the Uganda National Mining Company, which will serve as the government’s investment vehicle within the mining industry.
As part of the same investment strategy, the government plans to establish additional industrial parks to facilitate petrochemical offshoots as Uganda prepares for first oil production in July 2026. These ventures are projected to generate more than USD 2.5 billion in revenue.
Local content challenges in oil and gas
Despite policy efforts to boost local content in the oil and gas sector, Asiimwe expressed disappointment with some Ugandan companies and entrepreneurs who have failed to meet the demands of awarded contracts.
The government had ringfenced 13 key sectors for local firms, aiming to ensure that at least 40 percent of the projected USD 20 billion investment in oil and gas remains within the domestic economy.
“You win a contract to supply eggs, 5,000 trays a week for three years. Week one, fine. Week two, still good. By week seven, you’re delivering 4,000 trays and coming with explanations. They don’t want explanations, they want eggs,” Asiimwe remarks, illustrating the sector’s struggle with consistency and reliability among local suppliers.
A sector of opportunity and challenge
Artisanal and small-scale mining [ASM] remains a crucial sector in Uganda, contributing significantly to gold production, creating employment, and supporting thousands of livelihoods. However, the sector still grapples with challenges around legal recognition, environmental concerns, and worker safety.
The UCMP’s drive to formalise these miners is therefore seen not only as a step towards transparency and accountability but also as an effort to unlock the sector’s full economic potential.
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