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Uganda

Legislation

  • Mining and Minerals Act 2022
  • National Environment Act 2019

Regulatory Risk Rating

Severe
Regulatory Risk

Regulatory Corruption Risk

Extremely High
Regulatory Corruption Risk

Corruption Exposure Risk

Very High
Corruption Exposure Risk
Regulatory Risk Rating Factors Risk Level
First Come / First Serve Subscribe
Application Criteria Subscribe
Duration Subscribe
Right to Renew Subscribe
Competing Licences Subscribe
Mineral Coverage Subscribe
Right to Mine Subscribe
Criteria for Mining Rights Subscribe
Tenure Subscribe
Surface Rights Subscribe
Government Take Subscribe
Transfer Rights Subscribe
Change of Control Subscribe
EIA Process Subscribe
Power to Revoke Subscribe
Age of Legislation Subscribe
Other Factors Subscribe

Uganda’s reform efforts have not proved to be successful from a legal risk perspective, with risk in the country rising under the 2022 mineral legislation. The MMA provides the Minister with unfettered discretion over the mining sector and contains numerous provisions which expose mining companies to legal and corruption risks. The law falls far short of expected standards, and although principles of transparency, anti-corruption and beneficial ownership are acknowledged within its many provisions, it fails entirely to provide an environment where investors who value such principles may rush to. It is high time for countries to start considering the type of investors and companies they want to attract and start working with industry to ensure balanced laws that work for all parties. Unfortunately, in Uganda’s case, we find yet another example of a law which has been drafted without acknowledging the fundamental issue that a country’s mining sector potential will never be fulfilled unless the legislative framework provides a sound basis for investment. The economic and other benefits nations hope to gain from their mining sectors cannot be achieved without the mining companies themselves and it would seem that Uganda has forgotten that with its 2022 mineral law.

Contents

Legislation

  • Mining and Minerals Act 2022
  • National Environment Act 2019

Regulatory Risk Rating

Severe
Regulatory Risk

Regulatory Corruption Risk

Extremely High
Regulatory Corruption Risk

Corruption Exposure Risk

Very High
Corruption Exposure Risk

Overview

Historically, Uganda had a strong mining sector, which accounted for around 30% of the country’s export earnings in the 1950s and 1960s (Investment Uganda). However, the sector weakened in subsequent years due to numerous factors including economic downturns, mineral prices and political instability. Uganda is home to numerous metallic and non-metallic minerals, with the primary minerals including marble, gold, copper, cobalt, iron ore, rare earths, construction minerals, and phosphates. In more recent years, the mining sector has continued to contribute to export revenues and GDP – accounting for almost 2.0% of GDP in 2021. The sector remains dominated by artisanal and small-scale operations, with figures estimating that at least 90% of the sector is artisanal. Large-scale operations remain limited. The country underwent a legal reform process which concluded in 2022 with the issuance of a new mining law, replacing the previous law which dated back to 2003. Uganda has been an EITI member since 2020 and the legislation introduced in 2022 incorporates EITI requirements on transparency, contract publication, anti-corruption and beneficial ownership.

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