Uganda urged to leverage mineral wealth for sustainable development

Uganda is facing increased pressure to maximize the benefits from its rich natural resources, ensuring that revenues from mining, oil, and gas contribute to sustainable development and secure a better future for its citizens. This call to action comes as the country releases its Fifth Extractive Industries Transparency Initiative (EITI) Report for the 2023/24 financial year.

The report highlights a significant increase in extractive sector revenues, which rose by 25.1% to Shs663.24 billion in the last fiscal year, up from Shs530.17 billion the previous year. Direct government revenues saw a substantial jump to Shs606.36 billion, with oil and gas revenues increasing by 41.7% to Shs326.27 billion, while mining revenues reached Shs336.97 billion.

State Minister for Finance and Uganda’s EITI Champion, David Bahati, emphasized the critical need to invest these revenues wisely. “If properly managed, it can generate revenue that can help us put in place the necessary infrastructure to stimulate investment, foreign exchange earnings and value addition,” Bahati stated, underscoring the sector’s potential to drive broader economic growth.

Stakeholders, including the Uganda Chamber of Energy and Minerals, stressed the importance of transparency and accountability. Humphrey Asiimwe, CEO of the Chamber, noted that the EITI report is vital for government policy-making, community understanding, and ensuring public funds are utilized effectively. “Citizens want to know whether the money generated from these resources is being put to proper use,” he added.

While commending Uganda for the quality of its data, the EITI Independent Administrator, Maalej Reached, called for stronger reporting on environmental impacts and improvements to the legal framework supporting transparency. As Uganda gears up for oil production, which is expected to significantly boost revenues, a call has been made for citizens to actively monitor developments and the allocation of funds derived from these resources.

The push is for greater investment in value addition, local content development, industrialization, and robust environmental protection measures, alongside transparent resource management, to ensure Uganda truly benefits from its mineral wealth for generations to come.

Source: https://nilepost.co.ug/news/373096/uganda-urged-to-turn-mineral-wealth-into-sustainable-development