The Deputy Speaker, Thomas Tayebwa, says government must unlock the potential in the minerals sector if it is to achieve its ambitious goal of growing the country’s Gross Domestic Product (GDP) from US$55 billion to US$500 billion by 2039.
Tayebwa based his proposal on the wide coverage of high quality minerals across the country.
“This is a very critical sector which we believe can help us unlock the potential of our country, especially with our target of achieving an economy worth US$500 billion. I do not think we can achieve this without the mining sector,” Tayebwa said.
Tayebwa was speaking as the chief guest at the 13th Annual Mineral Wealth Conference organised by the Ministry of Energy and Mineral Development at Kampala Serena Hotel on Tuesday, 01 October 2024.
The Deputy Speaker observed that in the energy and mining sector, government has for the past years dedicated resources towards electricity generation and its transformation and petroleum exploration. He added that the stability registered so far can allow for a shift to the mining sector, saying it should be a priority in the next financial year.
“I know you have a small budget, Shs49 billion is really little for the ministry, considering the potential of the mining sector. I am going to assign the Committee on Environment and Natural Resources to ensure that US$100 million requested for minerals exploration is obtained,” said Tayebwa.
The Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, who was also the conference host said the sector is steadily growing with new exploration findings and extraction. Nankabirwa hailed the commencement of tin smelting in Ruti, Mbarara District, which she said is a proof of estimable progress.
The minister added that government had concluded the process of redeveloping Kilembe Mines and that the contractor will soon be announced. The winning company, she said, will work with the National Mining Company created to take care of commercial interests of government in Kilembe.
She emphasized the need for increased funding to the sector, which she said prides in having minerals in every region that remain under explored.
“You are having high quality minerals almost everywhere; you have ideas but you do not have money. We are proposing putting money in the local content fund, to be able to do the highest quality of exploration,” Nankabirwa said.
The Chairperson of Uganda Chamber of Mines and Petroleum Board of Directors, Richard Kaijuka, asked government to consider a supplementary budget for the mining sector which he said is able to catapult the economy.
“It is a miserable story to hear that the mining sector contributes only two percent to GDP year in, year out. With additional investment of even US$100 million being sought for exploration, I can predict the sector’s contribution can rise to more than 10 percent,” Kaijuka said.
