Development Minerals: Innovation and Enterprise Empowering Women Artisanal Miners of Uganda

June 24, 2024

Comfort Okello, founder of Atim Ki Kuma Quarry Mine and beneficiary of the UNDP ACP-EU Development Minerals Programme

Uganda is geologically endowed with a rich variety of valuable minerals present in commercially viable quantities. These include high-value minerals such as gold, uranium, iron ore, wolfram, nickel, copper, cobalt, tin, and rare earth elements, as well as development minerals like industrial minerals, construction materials, dimension stones, and semi-precious stones. The mining sector in Uganda encompasses both large-scale mining operations and artisanal and small-scale mining (ASM) activities. Despite having large underexploited mineral deposits, Uganda's mining potential remains significantly untapped.

The Role of Mining in Uganda’s Socioeconomic Transformation

The mining sector holds immense potential to drive Uganda’s socioeconomic transformation and accelerate progress toward achieving the Sustainable Development Goals (SDGs). The mining sector plays a pivotal role in poverty reduction, employment generation, sustenance of livelihoods, and wealth creation. In the fiscal year 2022/23, mining contributed 1.9% to Uganda’s Gross Domestic Product (GDP), up from 1.4% the previous year. According to the Uganda Bureau of Statistics (UBOS), the mining and quarrying industry directly employs close to 600,000 people.

An artisanal miner at Atim Ki Kuma Quarry Mine

Artisanal and Small-Scale Mining (ASM): An Important Sector for Uganda

Artisanal and Small-Scale Mining (ASM) is prevalent in Uganda and is one of the most important rural non-farm economic activities. ASM contributes over 90% of Uganda's mining production and employs more than 60% of the mining workforce. According to a baseline assessment and value chain analysis of the development minerals sector in Uganda, ASM contributes at least $850 million USD in production value to Uganda’s economy. If integrated into the national economic statistics, Uganda’s GDP would grow by an additional 1.3%.

Women constitute a significant portion of the ASM workforce, engaging in roles from panning and processing to trading goods and services. Despite the high value of ASM production, the majority of the workforce earns minimal income. ASM, largely an informal poverty-driven activity, often results in environmental damage and poses serious health and safety risks for workers and surrounding communities, with limited economic benefits. However, if properly harnessed, ASM has the potential to drive the growth of decent work for millions, foster micro and small enterprise (MSE) growth, increase household incomes, boost government revenues, and accelerate progress towards several SDGs.

Challenges Facing ASM in Uganda

Numerous factors have impeded the potential of ASM operations to accelerate Uganda’s economic prosperity and sustainable development. Key constraints include:

Limited Access to Finance: The informal nature of ASM and lack of collateral limit capacity to invest in equipment, technology, and safety measures.
Inadequate Entrepreneurial Skills and Competences: Many ASM operators lack the necessary business acumen to manage their operations efficiently.
Limited Access to Markets and Value Chains: Artisanal miners often struggle to connect with broader markets, reducing their income potential.
Lack of Technical Knowledge and Skills: ASM operators often lack the technical expertise required to adopt safer and more efficient mining practices.
Absence of Geological Data: Limited access to geological data hinders effective mining operations.
Complex Regulations: Inconsistent regulations create barriers to entry and compliance burdens for artisanal and small-scale miners.

The sector also faces sustainability challenges due to the methods used in extraction, processing, and utilization of development minerals. Recognizing these challenges, the United Nations Development Programme (UNDP) has included support for ASM operations in its Uganda Country Programme 2021-2025, aiming to promote economic prosperity, job creation, and sustainable development.

UNDP’s Efforts to Support ASM

In partnership with the Organization of African, Caribbean and Pacific Group of States (OACPS) and the European Union (EU), UNDP is addressing these challenges through various initiatives:

Strengthening Regulatory Frameworks: Ensuring issues pertaining to ASM enterprises (ASMEs) are mainstreamed into mining and mineral laws and policies.
Environmental and Social Safeguards: Providing onsite training in sustainable mining practices, developing handbooks on conflict management, safety, health, and environmental restoration.
Technological Innovation: Creating digital platforms to improve market access, providing grants for formalization, value addition, and job creation for youth, and supporting technological development in the mining sector.

Atim Ki Kuma Quarry Mine

Atim Ki Kuma Quarry Mine, founded by Ms. Comfort Okello in Gulu, Northern Uganda, is a success story of the UNDP-implemented ACP-EU Development Minerals Programme. The quarry received a grant of 18 million UGX ($4,800 USD), which was used to establish a Village Savings and Loans Association (revolving fund) and purchase essential equipment such as motorized water pumps, sledgehammers, helmets, gloves, and masks. Additionally, the grant funded capacity-building training in first aid response to manage onsite accidents.

The revolving fund and business growth at the quarry have significantly improved the capital base and living standards for the women involved. Ms. Okello mentions that borrowing from the fund has enabled her to open a hardware shop in a nearby trading center, providing essential items for the quarry site. The grant and equipment have increased productivity, reduced production costs, and boosted profits.

Networking and Capacity Building

Beyond financial support, the ACP-EU Development Minerals Programme has provided the group with networking opportunities and strategic partnerships. Ms. Okello participated in a forum on sustainable mineral value chains in Zambia, where she shared experiences and adopted climate-smart mining practices. Her association now runs a campaign to restore the environment by planting trees along swamps and streams.

Through UNDP’s support, the group was also connected to the African Centre for Energy and Mineral Policy, which built a drainable pit latrine with a 45-year lifespan and drilled a clean borehole with a solar pump for improved site safety.

Future Needs and Expansion

The group's biggest need for expansion and growth is acquiring a machine to grade, extract, crush, and sort stones, sieve stone dust, cut stones, and design them for productive use. This machinery would significantly boost productivity and profitability.

Empowering ASM for Sustainable Development

The success story of Atim Ki Kuma Quarry Mine highlights the transformative power of well-supported artisanal mining. With the right tools, training, and financial backing, artisanal miners can drive substantial economic growth, benefiting their communities and the entire country. Empowering ASM groups with an enabling environment for production and growth serves both the macro economy and micro-level communities engaging in such activities.

The ACP-EU Development Minerals Programme and UNDP's efforts have laid a strong foundation for the continued success and growth of ASM operations. The lessons learned and progress made at Atim Ki Kuma Quarry Mine offer a blueprint for similar initiatives across Uganda and beyond.

The future of Uganda's mining sector is bright, with the promise of increased economic empowerment and sustainable development for communities engaged in artisanal mining.