Equity Bank has expressed its dedication to Uganda's mining and extractive sector, with a strong emphasis on expanding financial inclusion among artisanal and small-scale miners. Christine Mukasa Mugerwa, Senior Sector Head, Energy, Mining and Extractives at Equity Bank Uganda, highlighted the bank's efforts to bring financial services closer to miners. The bank aims to support the transition towards safer and more productive mining practices.
The Ugandan mining sector faces significant challenges, with approximately 80 per cent of miners being artisanal workers who use basic equipment and encounter major barriers to traditional financing. Mugerwa noted that these miners often lack formal paperwork and move with the mines, making it difficult for them to access conventional financing.
To address these challenges, Equity Bank is working with miner associations and refineries to provide financial literacy, asset financing, and access to modern equipment. The bank's initiatives include providing mini-excavators to enhance mining operations. Mugerwa emphasized that the bank's goal extends beyond increasing the sector's GDP contribution from two per cent to 10 per cent, as it seeks to promote socio-economic prosperity, safety, and dignity for every Ugandan miner.
Mugerwa's remarks were made at the 15th Annual Mineral Wealth Conference and Expo, held at Speke Resort Munyonyo from September 29 to 30. The conference, organized by the Uganda Chamber of Energy and Minerals in partnership with the Ministry of Energy and Mineral Development, brought together delegates to discuss Uganda's mining potential. The event's theme, "Beneath the Surface: Unlocking Africa's Next Mining Powerhouse," underscored the country's efforts to unlock its mineral wealth.
The Ugandan government aims to increase the mining sector's contribution to the economy from about two per cent of GDP to 10 per cent. Achieving this target will require significant investment, value addition, and access to finance across the mining value chain. However, many small-scale miners face difficulties in accessing formal financing due to the mobile nature of their operations, limited formal documentation, and informal cash-flow records.
Equity Bank is addressing these challenges through partnerships with miner associations, off-takers, and refineries, as well as financial literacy and asset-financing initiatives. By working with miner associations, the bank can reach workers who might otherwise remain outside the formal financial system. This approach also enables the bank to provide financial literacy, an essential component of building a more sustainable mining sector.
The bank's focus on Uganda's extractive sector aligns with Equity Group's broader Africa Recovery and Resilience Plan (ARRP). The ARRP identifies natural resources and extractives as crucial drivers of industrialization and economic transformation across the continent. By supporting Uganda's mining sector, Equity Bank aims to contribute to the country's economic growth and development.
Key points
- Equity Bank is working to increase financial inclusion among artisanal and small-scale miners in Uganda.
- The bank aims to support the transition towards safer and more productive mining practices.
- Uganda seeks to increase the mining sector's GDP contribution from two per cent to 10 per cent.
