Minister of State for Planning Amos Lugoloobi has challenged stakeholders in Uganda’s extractive industry to strengthen governance, promote responsible investment and improve revenue management to ensure the country derives greater economic value from its mineral resources.
Lugoloobi said Uganda must move beyond extracting and exporting minerals to ensuring that the country benefits fully from its natural resources through effective monitoring, transparency and accountability.
“Are we maximising the value of our mineral resources before they leave the country?” he asked.
He made the remarks on Friday while officiating at the national dissemination of Uganda’s Fifth Extractive Industries Transparency Initiative (EITI) Report at Protea Hotel in Kampala.
Uganda has so far published five EITI reports covering the financial years 2019/20 to 2023/24, providing information on revenue generated from the extractive sector, mineral production, exports and payments made by companies to government.
According to Lugoloobi, Uganda’s extractive sector generated approximately Shs663.24 billion in revenue during the financial year 2023/24, with mining and quarrying contributing Shs336.97 billion.
He said the figures demonstrate the sector’s growing contribution to the economy but also raise questions about whether government is collecting all the revenue due and adequately monitoring mineral production, exports and company payments.
“Are we collecting all the revenues due to government?” he asked, calling for stronger revenue administration and improved compliance with tax obligations, licensing requirements and reporting standards.
Lugoloobi noted that information generated through EITI reporting gives government a better understanding of mineral production volumes, exports, company operations and fiscal payments, enabling authorities to identify potential revenue leakages and strengthen oversight.
He said the information could also help government identify under-reporting and improve the collection of royalties, corporation tax, withholding tax and surface rentals.
The minister emphasised that transparency in the extractive industry should go beyond publishing periodic reports, describing EITI as an important tool for economic management and domestic revenue mobilisation.
“EITI should not be viewed simply as a reporting exercise or an obligation to publish periodic reports. It is a governance and economic management instrument that can help Uganda mobilise more domestic revenue and derive greater value from its natural resources,” he said.
The five EITI reports recommend continued efforts to institutionalise EITI reporting, improve the quality and accessibility of data, strengthen beneficial ownership and mineral licensing transparency, and enhance revenue and financial disclosures.
They also call for expanded reporting on environmental and climate-related issues to promote responsible and sustainable management of the country’s natural resources.
