Uganda and Tanzania address mining sector gaps
Uganda and Tanzania’s public and private sectors must address gaps in mining activities to create opportunities aligned with their development plans.
Speaking at the 2nd Uganda-Tanzania Business Forum, held in Dar es Salaam from May 23-24, Sebastian Kolowa, who moderated the panel discussion on the mining industry value chain, said both nations are emerging economies with significant potential for revenue generation, industrial development, and socio-economic transformation through the mining sector.
“Despite the potential benefits, the mining industry in Uganda and Tanzania faces various challenges, including regulatory uncertainties, infrastructure deficits, environmental concerns, and access to finance,” Kolowa said.
Addressing these challenges, he said, requires collaboration among governments, the private sector, and civil society to foster an environment conducive to responsible and sustainable mining practices.
Humphrey Asiimwe, the Chief Executive Officer of the Uganda Chamber of Mines and Petroleum, underscored the importance of learning from Tanzania’s advanced mining sector, particularly its success in growing the artisanal mining sector and improving market access for artisanal miners.
He noted that Uganda’s recent passage of the Minerals and Mining Act of 2022, which recognizes the role of artisanal miners, was inspired by Tanzania.
Currently, Tanzania’s mining sector contributes 9% to its GDP while Uganda’s contribution remains at a steady 2%.
Asiimwe encouraged Tanzanian mining companies to explore investment opportunities in Uganda, emphasizing that geology knows no boundaries. He also stressed the importance of maintaining a stable investment environment and urged governments to play a crucial role in creating an attractive investment climate.
“There is a need for boosting livelihoods rather than providing handouts. Mining companies should engage in corporate social responsibility initiatives as a social license to operate in communities,” Asiimwe said.
He noted that while Uganda faces challenges in mining skills, these skills exist in Tanzania and can be shared through chambers of mines and other collaborative spaces.
Benjamin Mchwampaka, the Executive Secretary of the Tanzania Chamber of Mines, highlighted Tanzania’s success in refining gold, noting the presence of two gold refineries.
He revealed the Tanzanian government’s interest in purchasing a $400 million malt metal machine to add value to raw materials, enhancing the quality of the output.
Mchwampaka pointed out that Tanzania’s mining sector contributed 19% to GDP last year, with gold exports accounting for 56.9%. He emphasized the importance of mapping and collecting geological data on the abundant minerals in Uganda and Tanzania, including gold, coal, and more.
Mchwampaka also underscored the need to focus on large-scale mining rather than small-scale operations and proposed the establishment of geological centers in various districts to support this initiative.
Emphasis on value addition
Chris Lubangakene, the Assistant Commissioner at the Ministry of Energy and Mineral Development in Uganda, emphasized the government’s bold move to encourage value addition to mineral resources, citing mineral value chains as crucial for economic development.
He highlighted Tanzania’s successful strategies in gold mining as a learning opportunity for other African countries, including Uganda. Lubangakene stressed that Uganda aims to invest in data management for the mining sector, emphasizing the importance of accurate data in monitoring mineral contracts and attracting investment.
He advocated for national participation in the sector through mining cooperatives to ensure that local communities benefit from mining activities. “In terms of local content in gold mining, 30% of services are accorded to the gold mining sector of Uganda,” Lubangakene said.
He added that the two countries could cooperate in developing ongoing mining projects in Uganda, such as the phosphate and graphite projects, which are critical in reducing dependence on mineral imports and promoting local economic development.
Henry Zephaniah from the Tanzania Mining Commission provided insights on involving local communities in the mining sector through effective mineral policies and legal frameworks.
He emphasized the importance of the social license to operate, which involves investors engaging with communities to reach common ground and offer incentives such as compensation.
He also highlighted the need for investors to cooperate with local governments to ensure communities understand their roles and expectations in mining projects. He stressed the importance of a memorandum of understanding (MoU) as a key requirement for successful cooperation.
Source: https://www.independent.co.ug/