Sustainability
Uganda

Without increasing added value, Uganda risks losing the fight for sustainable development and losing employment opportunities

By Emmanuel Lyimo
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Uganda should process more of its minerals before exporting if it wants to create jobs, strengthen local industries and generate more revenue from its natural resources, industry leaders said. The simple export of raw materials allows other countries to benefit from the production and added value that could be created inside Uganda.

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This call was made in Kampala during the Uganda Catalyst Summit 2026, where politicians, investors and industry experts discussed how Uganda can make better use of its growing mining sector. Their message was clear: the country's long-term prosperity would depend not only on production volumes, but also on what it does with these resources after they are extracted.

The discussion focused on the concept of added value, the process of turning raw materials into more refined or finished products before they are sold. Instead of exporting raw minerals, countries can process, refine, or produce goods from them that are significantly more expensive on international markets.

Daphne Nimusiima, Chief Operating Officer of the Ugandan Chamber of Energy and Minerals (UCEM), stressed that Uganda's mineral resources should become a catalyst for industrial development, and not remain just a source of raw materials exports. «Added value is no longer just an option. This is necessary if Uganda wants to build a competitive industrial economy and maximize the benefits of its natural resources», Nimusiima said. Her remarks came as Uganda continues to expand the exploration and development of valuable minerals, including gold, cobalt, tin, tungsten and rare earths. Many of these minerals are in growing global demand, as they are used in batteries for electric vehicles, electronics, and renewable energy technologies.

According to Nimusiima, the challenge is to ensure that these resources support industry inside Uganda, rather than being exported raw for processing elsewhere. She also called for a broader approach to «local content», a policy that encourages Ugandan businesses and workers to participate in the country's mining industry. Instead of treating local content simply as a legal requirement, she suggested using it to create strong domestic companies capable of providing services throughout the mining sector. «Local content should not be seen as just following the rules. This is a strategy for developing the domestic industry, creating jobs and strengthening Uganda's production potential», she said.

Companies involved in engineering, equipment supply, transportation, and mineral production and processing could expand, creating jobs and strengthening Uganda's industrial base. Local processing of minerals will allow the country to retain a large share of the wealth generated by natural resources, instead of exporting this value to foreign producers.

The discussions reflected broader changes taking place across Africa. Mineral-rich countries are increasingly investing in processing plants and manufacturing facilities to move away from commodity exports. Experts noted that countries that process their own minerals, as a rule, receive more income from exports, attract additional investments and better cope with fluctuations in world prices for raw materials. For Uganda, according to participants, the opportunity lies in using the growing mineral sector as a foundation for broader industrial development.

The production of finished or semi-finished products can increase export earnings, create skilled jobs and increase budget revenues. However, speakers cautioned that achieving these goals would require significant investments. The establishment of processing plants depends on reliable electricity supply, modern infrastructure, financing, advanced technologies and a skilled workforce. Energy has become one of the most serious problems. Mineral processing, such as smelting and refining, consumes huge amounts of electricity, making affordable and reliable energy critical for any future expansion. By the end of the summit, the participants agreed that Uganda's success should no longer be measured solely by the amount of minerals extracted from the depths. Instead, they say, the country's future prosperity will depend on its ability to turn these resources into higher-value-added products within the country.

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