Uganda
Legislation
- Mining and Minerals Act 2022
- National Environment Act 2019
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
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
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
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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