uganda
Uganda has a favourable geological environment that hosts over 27 commercially exploitable mineral resources. The mining sector has great potential of contributing to economic growth and poverty alleviation through mineral exports, local consumption, manufacturing, employment generation and diversification of the economy. The sector is projected to be a major driver in employment creation and GDP growth over the medium term especially through value addition.
Uganda’s mining sector sustains about two million people directly and indirectly through formal and artisanal/small scale mining operations. Artisanal and Small-scale Miners (ASMs) alone are responsible for over 90% of the entire mineral production in the country (i.e. precious and semi-precious minerals and metals as well as building and construction minerals and materials).
Specifically, the ASMs are involved in the extraction of building and construction materials, collectively referred to as Development Minerals, contributing about 3.5% to GDP, according to a recent joint study by Ministry of Energy and Mineral Development and ACP-EU/UNDP.
Uganda’s construction sector continues to grow at an average of 6% per annum, gradually increasing the demand for sand, clay, limestone, marble, kaolin, stone aggregate and other building materials or minerals. Agriculture, which provides a source of livelihood for 65% of Uganda’s labour force and constitutes 26% of the GDP, will increasingly call for a range of agro-mineral inputs, such as phosphates, vermiculite and lime which are needed to spur agricultural production, counter depleting soil fertility and maintain food security.
Other sectors such as the plastics, pharmaceuticals and oil-well drilling also require salt, kaolin and bentonite, respectively, providing a glimpse into the range of industrial applications of Development Minerals, a sector that is dominated by ASMs. In total, 84% of the value of all Development Minerals production in Uganda is attributed to ASMs, with an estimated value of USD 350 million in 2016.
Artisanal and Small-scale miners continue to work only marginally, using hand tools or basic machinery because they cannot afford equipment to enhance their production. The available financial service providers have continued to ignore them because they believe that their business is not sustainable.
Uganda’s formal micro-finance and commercial banking sector has not taken steps to deliberately understand the mining sector and explore ways in which they can be supported with affordable financing. For example, the financial institutions do not treat Location and Exploration Licenses or even Mining Leases as assets good enough to be used as collateral by the miners to acquire loans.
Yet, the reality is that moving towards safe, scalable and equitable benefits for marginalized and mining-dependent communities requires capital and resources. This would enable ASMs to invest in technologies that eliminate wasteful mining practices, increase their efficiency and productivity and ultimately lead to a creation of economically bankable and viable small and medium-sized enterprises.
Meanwhile, the onset of Covid-19 has significantly affected ASM production, disrupted markets and ultimately lowered their earnings. While the sector is gradually picking up and will eventually recover, therein lies a great opportunity for financial service providers to support ASMs in this recovery process on mutually beneficial terms.
With the above context in mind, ACEMP has organised the second Annual ASM-Q Conference and Exhibition to bring together ASM-Q players across Uganda to discuss these challenges and collectively devise strategies of enhancing the management and productivity of the ASMQ-sector, amidst the challenges presented by the Covid-19 pandemic.
This is the second such event organised by ACEMP.The inaugural event was held in June 2019 and it was a resounding success. It was held in partnership with the Uganda Association of Artisanal and Small-scale Miners (UGAASM). In attendance were over 200 mining sector leaders, representatives from responsible government ministries and agencies, mineral exporters, financial institutions, mining sector service providers media, development partners and civil society representatives.
The second annual ASM-Q Conference and Expo is now planned for 3-4 December 2020. It will be held at the Lake View Hotel Gardens in Mbarara. The event aims at showcasing the mineral potential of the Western Region and discuss key issues to ASMs in that region, with a special focus on enhancing access to affordable financing amidst the challenging business context that Covid-19 presents.
It will be a two-day conference and exhibition held under strict observance of anti-Covid 19 Standard Operating Procedures. It is expected that 200 people will attend, drawn from the different mining regions of Uganda, while at least 100 more people will join in through different online platforms that will be created for the event.
ACEMP will take opportunity to also launch three reports at the event namely: A Mapping Study Report of the Artisanal and Small Scale and Quarrying Sector; The Minerals Sector Development Scorecard (2018-2019) and the Petroleum Sector Development Scorecard (2018-2019).
