Uganda’s Minister for Energy and Mineral Development, Ruth Nankabirwa, has emphasized the need for a sustainable mineral development policy to optimize the country’s natural resources.
This call to action comes as Uganda launches the Sustainable Development of the Mining Sector project, a joint initiative with the European Union Delegation to Uganda and the German Federal Ministry for Economic Cooperation and Development.
“The project will focus on enhancing Uganda’s mining sector attractiveness, supporting sustainable socio-economic growth,” Nankabirwa said while launching the project at Speke Resort Munyonyo, Thursday.
“We are committed to unlocking the immense potential of Uganda’s mining industry, addressing challenges like informality and limited value addition,” she added.
What is Sustainable Mineral Development?
Sustainable mineral development refers to the responsible and environmentally-friendly extraction, processing, and management of mineral resources. This approach prioritizes the well-being of local communities, environmental conservation, and economic growth.
Why is Sustainable Mineral Development Key to Uganda’s Economic Growth?
Uganda’s mineral sector has the potential to significantly contribute to the country’s economic growth. The sector’s development can create jobs, stimulate local economies, and generate revenue for the government. In 2022/2023, the mineral development sector was allocated a significant portion of the national budget, demonstrating its importance to Uganda’s economic development.
Statistics on Uganda’s Minerals and Their Contribution to the National Budget
Contribution to GDP: The services sector, which includes mining, is the largest contributor to Uganda’s GDP.
Employment: The mining sector employs a significant number of Ugandans, with the sector accounting for a notable percentage of the country’s employment.
Revenue Generation: The mineral sector generates significant revenue for the government, with the sector contributing a substantial amount to the national budget.
The Way Forward
To unlock the full potential of Uganda’s mineral sector, the government must prioritize sustainable mineral development. This includes:
Implementing environmentally-friendly mining practices
Supporting local communities and ensuring fair compensation
Promoting value addition and local processing of minerals
Encouraging responsible investment and adherence to international standards
By adopting a sustainable approach to mineral development, Uganda can ensure that its mineral resources contribute to the country’s economic growth while protecting the environment and supporting local communities.