Equity Bank Uganda is seeking to expand access to finance for artisanal and small-scale miners as Uganda looks to increase the contribution of the mining sector to the economy.
The bank says many small-scale miners remain outside the formal financial system because of the informal and mobile nature of their operations, limited documentation and lack of conventional records required by banks.
Christine Mukasa Mugerwa, Senior Sector Head for Energy, Mining and Extractives at Equity Bank Uganda, said the bank is working with miner associations, off-takers and refineries to make financial services more accessible to the sector.
“Eighty per cent of Uganda’s miners are artisanal workers using basic sticks and basins, facing major barriers to traditional financing because they move with the mines and lack formal paperwork,” Mugerwa said.
She said the bank is supporting miners through financial literacy programmes and asset financing to help them acquire modern equipment, including mini-excavators.
The bank’s interventions were highlighted during the 15th Annual Mineral Wealth Conference and Expo held at Speke Resort Munyonyo from 29 to 30 September.
More than 1,500 delegates attended the conference, organised by the Uganda Chamber of Energy and Minerals in partnership with the Ministry of Energy and Mineral Development.
The meeting brought together government officials, mining companies, investors, financial institutions and experts to discuss ways of developing Uganda’s mining industry under the theme, “Beneath the Surface: Unlocking Africa’s Next Mining Powerhouse.”
Mugerwa said Equity Bank’s objective is not only to help increase mining’s contribution to Uganda’s GDP from about two per cent to 10 per cent, but also to improve the livelihoods and working conditions of people involved in the sector.
“Our goal goes beyond lifting mining’s GDP contribution from two per cent to 10 per cent. We are championing socio-economic prosperity, safety and dignity for every Ugandan miner,” she said.
Artisanal and small-scale miners are estimated to make up about 80 per cent of Uganda’s active mining workforce, but many struggle to obtain loans from conventional financial institutions.
Their operations often move from one mining site to another, while some miners lack fixed addresses, formal business records and documented cash flows. This can make it difficult for them to meet standard lending requirements.
Without access to affordable financing, many small-scale miners may also struggle to purchase better equipment and can become dependent on middlemen to finance their operations or buy their minerals.
Equity Bank says it is addressing some of these challenges by working with miner associations and players further along the supply chain, including off-takers and refineries.
The bank is also working with major industry players such as Wagagai to strengthen links between miners and markets, improve the structure of payments and support more transparent transactions.
At the conference, State Minister for Science, Technology and Innovation Jonard Asiimwe called for greater investment in processing minerals locally instead of exporting them in their raw form.
“Exporting our minerals in their raw form is like exporting our future prosperity,” Asiimwe said, arguing that Uganda needs better geological data, value-chain mapping and local processing capacity to retain more value from its mineral resources.
Uganda Chamber of Energy and Minerals Chief Executive Officer Humphrey Asiimwe said the country has identified 58 minerals, presenting opportunities for investment and development of the sector.
He also pointed to the growing mining industry and operations such as Wagagai Gold Mine as examples of opportunities for mineral value addition.
Equity Bank’s focus on the extractive sector is also part of Equity Group’s wider Africa Recovery and Resilience Plan, which identifies natural resources and mineral value addition as important drivers of industrialisation and economic growth.
The bank says supporting small-scale miners with finance, financial literacy and appropriate equipment could help improve productivity while promoting safer mining practices.
