Uganda is situated in the eastern part of Africa, they are blessed with mineral resources and one of which that is profound is gold and as a country, with fewer variation in the economic viewpoint, most of its citizens have dived into the mining of gold.
Africa also called the mother continent, is blessed with natural resources that vary from diamonds, cobalt, oil, natural gas, copper, gold, arable land, and the likes. These natural resources are being applied to different sectors like the industrial sector, agricultural sector, and other sectors. It is interesting to know that a huge part of the world’s natural resources emanates from Africa. And the continent, Africa, houses about 30% of mineral resources, 8% of natural gas, 12% of oil reserves, and 40% of gold. Most African countries have gained from these natural resources particularly for countries that do not have varieties as regards economic development and one of such countries is Uganda.
The availability of gold in Uganda has helped curb poverty and has been an instrument of change in the lives of its citizens. Aside from that, the availability of gold in the country attracted foreign investors to take interest in investing in the country.
The preliminary gold in Uganda
There has been an increase in the industry that mines gold in Uganda and this particularly has doubled the sales of gold exported to other countries by 30%. In the past years, gold was mined in smaller quantities and you will always find this gold in areas like Kigezi, Karamoja, Mubende, Busia, and also Buhweju. Nonetheless, In recent times there has been a notable increase in the sales of gold. In the year 2016, the country of Uganda recorded a $514 million sale of exported gold due to the variety of gold deposited in the country. There have been records of notable productivity in the mining industry also the continual mining of gold in the country has attracted many foreigners to be able to invest their capital in the mining sector. Regardless of the current changes in the country, there was once a time the country had set back in the mining industry when the native miners were still mining gold in a minimal quantity around the river basin not until the Spanish and Portuguese slavery merchants enriched the region and purchased the added interest that was attached to the gold then.
Stormy times in mining gold in Uganda
If you have ever taken time to study the records of the country, Uganda you will realize that several factors had been a limitation in the development of the country particularly around the 19th and 20th centuries. The country was then considered the least place investors would want to pour in their capital into. Not until President Yoweri Museveni came into power in 1986 to restore the political strength of the country. It was during his regime that notable changes began to take place which even attracted foreign investors and international mining companies to have a keen interest in investing in the mining sector. And this triggered them to request gold exploration licenses to enable them to have entry to the gold surveying in Uganda. However, this change was hugely favorable to miners that mined in a large order and less favorable to miners that mined on a smaller scale. When the bustle and hustle began for the International mining companies they were able to discover more gold in areas like Mubende, Kanungu, and Basia Districts. It was during this time that Basitema Gold mine and Kisita Gold mine were created. Even to date, there are still unknown places in Uganda that are yet to discover gold.
Progress with Gold mining in Uganda
The progress with Gold mining in Uganda has been a consistent one. Currently, the gold mining in Uganda is doing well. However, to gain entry into mining in the country there are several processes to take but the first is getting a surveying license from the ministry of environment. Although they are still other licenses you will but it will take 20 years or more before considering a renewal. Several mining companies in Uganda are doing well at the moment but the one that has hit the limelight is the Vangold company. Their major is surveying activities within the West Nile area, which encompasses the greenstone belt that is on Uganda’s side also known as Kito moto goldfields aside from the surveying activities, the company still carry out mining explorations with the help of her associates which are Dome mines Ltd and Rwenzori Cu & Ni Ltd.
Another remarkable company that is part of gold mining in Uganda is Ghana’s Blaze metal Resources Ashanti, which runs in the eastern part of Uganda like Namayingo and Bugiri.
Artisanal mining and disagreements
Also known as small-scale mining. This kind of mining has been in operation for more than 10 decades and the artisanal miners around the globe are around 20 million. The majority have long been fighting to turn it into a lawful kind of mining. Artisanal miners often operate without a license rather they would pay a landowner to gain entry to their land or perhaps will state an agreement of sharing a portion of the ore that will be mined. Some miners that operate in this mining, will either go to mining with their axes, diggers, or crushers. Hence, this kind of mining is seen as criminal in Uganda, and its exportation is seen also as a criminal act. This has caused a lot of damages in the mining sector like the stealing of gold, mishandling of human rights, tax revenue losses, land competition, and many more.
This triggered the authorities to pass different bills, first was the mining policy in 2001 followed by the mining act in 2003, and lastly, the mining regulations in 2004 to help prevent damages in the mining sector. Therefore, there is a possibility to increase the production rate of gold in Uganda with all that has been put in check. However, there still may be some setbacks particularly for miners using older methods and the only solution that can be proffered is if companies will assure these miners that they will help build infrastructure for their community as a means of reward.
A need for investors in the gold sector
At a meeting attended by the Director-General of Uganda Investment Authority(UIA) with other officials from the ministry, UIA headquarters in Kampala. The Ministry of Energy and mineral development made a report in February 2021 stating that the availability of gold in the country was estimated to be about a million ounces. The above report highlighted the need for investors to invest in the country particularly in the mining sector and also in jewelry so that investors can join forces with established mining companies to produce gold on a large scale since like areas that have been identified to have 10% of Uganda’s gold deposit. For instance, In the Kagezi region where gold was accentuated in the Chelima valley and also the Bwindi Impenetrable forest. Other areas that have the likelihood of having gold include Kaboong, Kupoth, Loyoro-Lopedo, Kalapata, Kathile, Kotome, Kanguoth, Lemonye, Loith. The good thing about investing in this sector as a foreign investor is that you could partner with the Shikana law group. They provide solutions to investment-related issues
Why you should invest in Uganda
There are several reasons to invest in Uganda and among others are:
- Entry to market
Uganda is an advantage to be situated in the center of Sub-Saharan Africa that permits business and investment. Aside from that, they have progressed to be a part of COMESA( Commonwealth market for Eastern and Southern African States) with over 300 million fellows in 20 countries.
- Powerful root in natural resources
The country is endowed with natural resources like untapped mineral resources which comprise Gold, Zinc, Wolfram, Petroleum, etc. They are blessed with attractive tourist locations packed with opportunities for international investors.
- Uganda is clear and safe for international investments.
As ensured in the constitution and investment code 1999. The country remains safe for international investment which is one of the reasons it is a key signatory to institutions that take part in investment activities.
- There are so many untouched business opportunities in the following areas like agriculture, energy, ICT, infrastructure, education, tourist centres and few others.
- The authorities provide encouragements for international investors
Sectors to invest in Uganda
There are several sectors to invest in Uganda and they include:
- Mining
- Agribusiness
- Power
- Electricity
- IT(Information Technology)
- Tourism etc
However, our focus for the now is the mining sector.
Conclusion
I believe this article will guide you and if you are ever in doubt of a firm to provide you law and business solutions in investment-related matters then Shikana group is the go-to firm in East Africa. They will provide you with business solutions as regards investing in the gold mining sector and how to startup either on a small scale or large scale. You can also feel free to share in the comment section if investing in Uganda’s mining sector is worth it or not. Happy reading!
Recent Comments