Experts blame mineral wealth mismanagement for economic instability

What the report says

Experts in Uganda’s extractives sector say weak management of mineral wealth is contributing to broader economic strain, including exchange-rate pressure and inflation. At a forum in Kampala following the 7th National Forum on Business and Human Rights, speakers argued that existing laws and policies are not being enforced well enough to deliver stronger revenue, more local value addition and better community participation in mining.

According to The Independent Uganda, Dr Frank Mugyenyi of the Minerals Africa Development Institution said the country has focused too heavily on earning export revenue rather than building domestic industries around minerals such as gold. He and other panelists argued that Uganda continues to export refined gold instead of developing manufacturing capacity, while mining communities receive limited employment and few direct benefits. They also questioned royalty and tax arrangements, and called for clearer rules to support artisanal and small-scale miners.

Government representatives on the panel defended parts of the current approach. Morris Tabaaro, a Regional Inspector of Mines, said policy decisions on gold were intended to attract refining investment, with more licences issued and more minerals identified. He also pointed to restrictions on raw gold exports and the Bank of Uganda’s gold purchases as steps to strengthen the sector.

Other participants, including Uganda Extractive Industries Transparency Initiative and SEATINI officials, raised concerns about gaps in gold production and export data, tax incentives, revenue mobilisation and accountability. The discussion reflects a broader debate in Uganda over how to turn mineral discoveries into sustained public benefit and industrial growth.