Equity Bank Pledges Support for Uganda's Mercury-Free Mining Transition

Uganda's efforts to eliminate mercury use in artisanal and small-scale gold mining are being hindered by limited access to affordable financing, stakeholders have warned. The sector, which supports an estimated 70,000 miners, continues to face challenges including informality, inadequate equipment, and limited access to credit. As a result, thousands of miners remain exposed to serious health and environmental risks.

The concerns were raised at the planetGOLD Uganda Fourth Annual Stakeholders Meeting in Kampala, where government officials, development partners, financiers, and mining sector representatives discussed strategies for promoting mercury-free mining practices. Bob Paul Lusembo, Head of Micro Business at Equity Bank, emphasized the need for financing solutions that go beyond traditional loans and support the broader needs of mining communities.

Mercury is widely recognised as a hazardous substance that can damage the nervous system and contaminate water sources and ecosystems. Uganda's mining regulations prohibit its use, making the adoption of safer alternatives both a legal and environmental priority. Dr. John Ekure of the National Environment Management Authority (NEMA) urged miners and sector stakeholders to prioritize human health, cautioning against pursuing economic gains at the expense of workers' safety.

The issue was illustrated through testimonies shared during the meeting, including that of a miner who reported suffering long-term health effects linked to mercury exposure. Participants said such experiences underscore the human cost of unsafe mining practices. Magara Siraje, Extractive Industries Coordinator at Oxfam Uganda, stressed the need to improve miners' access to financial services and technical support.

Equity Bank has pledged to help Ugandans promote mercury-free mining practices, citing the need to finance the entire value chain. Lusembo said that if Uganda is to ensure a safe and sustainable mining industry, it needs to support the broader needs of mining communities, including financial literacy, equipment acquisition, and business formalization.

Stakeholders concluded that addressing financing gaps and supporting formalization of mining groups will be critical if Uganda is to achieve a mercury-free gold mining sector while protecting livelihoods and the environment. They also called for greater collaboration among government agencies, financial institutions, development partners, and mining communities to accelerate the transition to safer mining methods.

The adoption of mercury-free technologies is crucial for Uganda's artisanal and small-scale gold mining sector, which is a significant contributor to the country's economy. With the right support and financing, miners can adopt safer and more sustainable practices, reducing the risks associated with mercury use and improving their overall well-being.

Key points

• Limited access to affordable financing is hindering Uganda's efforts to eliminate mercury use in artisanal and small-scale gold mining.
• Equity Bank has pledged to support Uganda's transition to mercury-free mining practices by providing financing solutions that go beyond traditional loans.
• The adoption of mercury-free technologies is crucial for Uganda's artisanal and small-scale gold mining sector, which is a significant contributor to the country's economy.