Stakeholders in Uganda’s extractive industry have called on the government to urgently operationalise Community Development Agreements (CDAs), warning that gaps in implementation are preventing mining communities from receiving meaningful benefits despite a strong legal framework.
The concerns were raised during an engagement convened by the National Resource Governance Institute (NRGI) in collaboration with Advocates for Natural Resources and Development (ANARDE) in Kampala, where civil society groups, community representatives, and government officials reviewed findings from earlier consultations.
Ruth Nagadya, Legal Officer and Researcher at ANARDE, said that while CDAs are now mandatory under the Mining and Minerals Act 2022, communities are yet to fully benefit due to weak enforcement and limited awareness.
“We are passionate about what we do because we’ve been down in these communities. Despite having all this wealth beneath their land, they remain among the poorest regions in the country,” Nagadya said.
“CDAs are binding agreements between mining companies and host communities meant to ensure benefit sharing, participation, accountability, and transparency. But while the law is clear, critical gaps remain, including lack of regulations, weak monitoring systems, and poor community participation.”
She further warned that mismanagement of community funds is common:
“We are seeing funds being transferred to individual accounts instead of structured community systems. The beneficiaries often do not even receive the money.”
Adding to these concerns, ANARDE Executive Director Frank Tumusiime revealed that legal action had already been taken over alleged breaches of a CDA in Moroto.
“We wrote a demand notice because over 400 people petitioned claiming that a mining company in Moroto breached a community development agreement,” Tumusiime said.
“The people were assessed and supposed to receive compensation, but now the company wants to channel the money to a trust instead. This points to gaps in implementation and the lack of a clear regulatory framework.”
Tumusiime also noted confusion among mining companies about CDAs, with some questioning whether the agreements duplicate obligations like royalties or corporate social responsibility contributions.
“They were asking, are CDAs replacing royalties? Are they an additional cost that could force companies to close shop? These gaps need to be addressed,” he said.
Stakeholders recommended developing clear regulations, standardised CDA guidelines, stronger enforcement mechanisms, and increased community sensitisation. Inclusive participation, transparency in fund management, and local government involvement were also emphasized.
Paul Bagabo from NRGI stressed the importance of balancing investment with community benefit:
“We would like to see more foreign direct investment in this sector, but companies also need a social licence to operate,” Bagabo said.
“There is so much money in mining, but it is not translating into benefits for government and communities. We need regulations to monitor and ensure the sector contributes to development.”
Responding to the concerns, Loyola Karobwa, a Legal Officer at the Ministry of Energy and Mineral Development, confirmed that the government is addressing the gaps:
“The requirement for Community Development Agreements already exists and is mandatory for all license holders. These companies should already be engaging communities to conclude such agreements,” Karobwa said.
“Proper consultation must be inclusive, involving men, women, youth, and vulnerable groups—not just a few selected members. We are also increasing the number of inspectors to ensure more frequent monitoring on the ground and developing regulations, including a model CDA and guidelines, expected in the next financial year.”
Maurice Tabaalu, a regional inspector with the Ministry, acknowledged enforcement delays due to capacity challenges but assured stakeholders that progress is being made.
“The CDA is new, and we have had limitations in personnel and capacity, but we are implementing as we go. I can assure you, these CDAs will be established and enforced,” Tabaalu said.
“Local governments and host communities must also play a role. If all stakeholders are not united, we will never get a good deal.”
Community representatives echoed frustrations over lack of tangible benefits. Augustine Okau, chairman of the Mawero Mining Host Community Welfare Association, highlighted the ongoing challenges:
“Up to this point, we have not had a meaningful agreement between the company and the host community. Some families lost up to 50 percent of their land, yet we still expect to benefit from these resources,” Okau said.
As Uganda seeks to grow its mining sector and boost domestic revenue, stakeholders emphasize that the success of CDAs will be key in ensuring that mineral wealth translates into real development for host communities rather than widening inequality.