Examining the legal framework governing mineral resources in Uganda: how legislation on gold can push Uganda to middle income status
Abstract
The extraction of minerals in Uganda has become an area of interest for both citizens and foreign investors. While legislation and policy exist to govern the mining sector, there remains concerns around local participation, loss of mining revenue and whether the current framework can support the country to reach middle income status. This research uses mainly desk study method of research, key informant interviews and case study approach to analyze the law on mining in Uganda, Ghana and South Africa. The research finds that the history of mining in Uganda is dominated by copper mining in Kilembe as the leading mineral that was mined. The research also finds that Uganda’s economy is troubled by a huge debt burden, low GDP, poverty, unemployment among other social economic challenges. The current legal regime governing mining is the 1995 Constitution as amended, the Mining and Minerals Act with attendant regulations, and other Acts of Parliament like Water Act, Land Act among others. The Africa Mining Vision among several others. The mining sector is also dominated by Artisanal and small scale miners. The majority minerals mined are exported without being refined. The research also finds that the wining aspect in regards to the mining laws of South Africa in comparison to Uganda and Ghana is the working enforcement mechanism of these laws. This tells us that the law on mining in Uganda lacks strong and working enforcement mechanisms and needs to be amended to restrict export of unrefined minerals. Also, the state needs to come up with laws that ensure it controls a given percentage of the mining sector fully that cannot be licensed out to foreigners. The research recommends economic diversification in the mining sector in that attention should be given to both oil and gold together with other mineral resources like copper. The research also recommends that strong and working enforcement mechanisms of the law and policy on mining be put in place. The need to add value to minerals locally by way of refining in order to reduce loss of revenue from mineral resources is another recommendation.