Experts at the 6th edition of the UG Economic Forum warned that Uganda’s mineral sector risks underperforming unless access to patient capital is prioritized.
Without long-term financing, the potential of these resources to drive industrialization, create jobs, and boost GDP may remain unrealized.
Panellists from the extractives industry highlighted that while Uganda is richly endowed with oil, gold, copper, and rare earths, investment is being stifled by financing bottlenecks.
Long-term funding for exploration, infrastructure, and downstream industries remains scarce, leaving much of the country’s resource wealth underutilized.
The discussions took place against the backdrop of Uganda’s ambitious Tenfold Growth Strategy, which aims to expand the economy from $80 billion to $130 billion.
Government officials emphasized that value addition, rather than mere extraction, is key to unlocking broad-based growth.
“Value addition is critical. We are exporting jobs if we export raw minerals. By refining and processing our resources locally, we can achieve sustainable growth and hit our targets,” said Nyamutoro, a government representative.
While Uganda’s oil and gas sector is developing following the Final Investment Decision announced on 1st February 2022—with over $15 billion expected to be invested in the next three to five years—experts noted that low funding remains a bottleneck undermining sectoral growth.
The forum underscored that Uganda’s natural resource endowment can underpin exponential growth, but this requires the right capital flows, regulatory clarity, and a strong commitment to local value addition.
Sustainable and environmentally friendly mining practices were also highlighted as essential to unlocking the sector’s full potential.
As the Tenfold Growth Strategy progresses, the mineral sector is being positioned not merely as a source of revenue but as a springboard for industrialization, job creation, and sustainable economic transformation.
