Commercial banks in Uganda have declared their readiness to finance both large-scale and small-scale mining ventures, provided projects are well-structured and compliant with regulatory and environmental standards.
The move signals a major shift toward formalizing and financing a sector increasingly seen as a new pillar of Uganda’s economy, one that has the potential to drive industrialization, job creation, and export growth.
This commitment comes as minerals overtakes coffee as the country’s top export, earning over $4 billion annually, even though mining still contributes just 1% to GDP. The government aims to increase that contribution to 10% under the National Development Plan IV (2023–2029).
Mark Muyobo, CEO of NCBA Bank Uganda Limited, said the lender has introduced a dedicated mining sector financing cap in alignment with Uganda’s national development priorities.
He explained that NCBA aims to play a catalytic role in formalizing and financing Uganda’s fast-growing minerals sector, which has emerged as a key driver of export earnings inline with the Uganda governments bold plan to expand the country’s economy from approximately USD 50 Billion to USD 500 Billion by 2040 through Agro-Industrialisation, Tourism, Mineral-based Industrial Development and Science, Technology and Innovation (ATMS)
“We have successfully financed over $400 million worth of mining projects in Kenya, and we are now replicating that proven model here through asset and equipment financing, working capital, and structured trade solutions. Mining finance is both feasible and sustainable when done correctly, what we need now is a structured ecosystem, clear regulation, formalized operations, and strong financial partnerships, to make the sector truly investable,” Muyobo said.
Muyobo noted that NCBA’s regional presence in Kenya, Tanzania, Rwanda, and Uganda positions it to offer cross-border financial solutions, such as trade finance, foreign exchange, and risk management for companies involved in importing mining equipment or exporting refined minerals. In addition, we can support miners against the existing contracts without the need of collateral.
Engineer Irene Batebe, Permanent Secretary at the Ministry of Energy and Mineral Development, described Uganda as endowed with abundant deposits of gold, lithium, cobalt, copper, and nickel.
“Gold has overtaken coffee as our top export, generating $3.8 billion, yet mining contributes only about 1% to GDP. Our goal is to raise that to 10% and make the sector a true pillar of economic development,” Batebe said.
She highlighted several reforms, such as a digital licensing system for efficiency and accountability, Zero-rated import duties on mining and exploration equipment and Traceability systems aligned with international mineral trade standards aimed at attracting investment and enhancing transparency.
Uganda currently hosts nine operational gold refineries, while flagship projects such as the $300 million Wagagai Gold Mine reflect renewed investor confidence in the country’s mining potential.
Despite growing investor interest, the mining ecosystem remains tilted toward large corporations, leaving artisanal and small-scale miners (ASM) with limited access to formal financing.
Kenneth Asiimwe, CEO of the Uganda Association of Small-Scale Miners (UGAASM), said many miners rely on informal lenders charging exorbitant rates.
“Many miners borrow at rates equivalent to 60% per month from informal lenders. The system is designed for big players, not small miners,” he said.
Asiimwe urged government and financiers to simplify licensing, establish seed capital funds, and promote joint venture models between artisanal cooperatives and investors to enhance technology transfer and formalization.
Charles Siman from UNDP Uganda emphasized the need for innovative financial products tailored to small-scale miners.
“Most artisanal miners need between $5,000 and $15,000 to buy equipment or expand production but lack conventional collateral. Their mineral reserves are their true assets, yet financial products don’t recognize that,” Siman said.
He called on banks to introduce inventory-backed loans, mineral-backed credit, and flexible repayment structures aligned with mining cycles, measures that could unlock thousands of livelihoods and support inclusive economic growth.
