COMMENTARY | Uganda’s mining sector stands at a pivotal crossroads. With artisanal and small-scale mining (ASM) accounting for over 90% of mineral production and employing hundreds of thousands across rural areas, its potential to transform the economy is immense.
Yet the sector remains largely informal, under-regulated, and under-taxed—depriving the country of vital domestic revenue.
For decades, ASM has provided livelihoods where few alternatives exist. In regions like Karamoja, Buhweju, Kigezi, and Busia, families survive on small-scale gold mining and extraction of tin, tungsten, gemstones, and industrial minerals like limestone and kaolin.
But this activity often occurs outside legal frameworks, with little oversight, no environmental safeguards, and virtually no contribution to the national treasury.
The numbers are stark. Between 2014 and 2021, formal ASM operations contributed just Shs713.5 million to government revenue—an amount that does not even scratch the surface of the sector’s potential.
Uganda is losing not only taxes and royalties, but also control over the quality, traceability, and environmental impacts of its mineral wealth.
Recognising this, the government introduced the Mining and Minerals Policy of 2018 and followed it up with the more robust Mining and Minerals Act, which replaces outdated laws and explicitly recognises ASM as a legitimate economic activity.
Importantly, the new law distinguishes between artisanal and small-scale operations, creating tailor-made licenses and clearer governance structures for each.
This legal recognition is more than symbolic. It lays the groundwork for a regulated, transparent, and tax-contributing mining ecosystem. It allows for zoning of mining areas, streamlined oversight, improved safety, and mechanisms for community development.
With structured licensing, Uganda can begin to stem mineral smuggling across porous borders, curb capital flight, and mobilise meaningful revenue from within.
But the promise of formalisation will remain unfulfilled unless key implementation challenges are addressed. Many ASM operators are unaware of the new laws. Others cannot navigate the costly or bureaucratic licensing procedures. The result is predictable: informality persists.
To overcome this, the government must simplify licensing processes, invest in awareness campaigns, and subsidise compliance costs for small operators. Support should also go toward equipment access, safety training, and cooperative formation.
As Paul Twebaze, a research fellow at ACODE, rightly puts it, “The policy environment must be supported by very clear regulations and incentives to help miners embrace formality.”
Civil society organisations like ACODE are already helping bridge the gap. Through financial literacy training, safety workshops, and leadership development, NGOs are helping miners organise into cooperatives and engage meaningfully with government institutions.
These cooperatives can be powerful vehicles for formalisation, as they offer structure, accountability, and collective bargaining power.
The Ministry of Energy and Mineral Development should also strengthen its partnerships with civil society, local governments, and development partners to establish community mineral resource centers, digitise traceability systems, and enhance enforcement capacity.
Formalisation is not a one-off event—it is a process that requires sustained investment and political will.
Beyond revenue, formalising ASM brings significant social and governance benefits. It can reduce child labour, mitigate conflict, protect miners from exploitation, and introduce grievance mechanisms. It can also unlock international markets, as global buyers increasingly demand traceable, responsibly sourced minerals.
Uganda’s mineral wealth should be a blessing, not a missed opportunity. Formalising ASM is not just about improving tax collection—it’s about ensuring that one of Uganda’s most important grassroots industries is safe, sustainable, and inclusive.
If done right, formalisation could become one of Uganda’s most effective tools for domestic revenue mobilisation and rural development. The time to act is now.