Uganda's extractive sector generated approximately 663.24 billion shillings in revenue during the 2023/24 financial year, with mining and quarrying accounting for 336.97 billion shillings, according to the Fifth Extractive Industries Transparency Initiative (EITI) Report released by the Government. The figures have prompted officials to examine whether the country is collecting all the money it is owed from mining operations and to strengthen oversight of mineral production, exports and company payments.
Minister of State for Planning Amos Lugoloobi raised concerns about revenue gaps while officiating at the national dissemination of the report in Kampala. He questioned whether Uganda is maximising the value of its mineral resources before they leave the country and whether the Government is collecting all taxes, royalties and other payments due from extractive companies. Lugoloobi said improving revenue collection from the sector could provide additional resources for public investment in infrastructure and social services while reducing pressure on other sources of government revenue.
The minister emphasised that information generated through EITI reporting gives the Government a clearer picture of mineral production volumes, exports, company operations and fiscal payments, which can help authorities identify discrepancies between what companies produce, export and declare for taxation. He said this data could strengthen the assessment and collection of royalties, corporation tax, withholding tax and surface rentals. Weak reporting systems and inadequate monitoring of mineral movements create opportunities for under-declaration, tax avoidance and revenue leakages, according to the Government.
Lugoloobi called for EITI to be treated as an economic management tool rather than merely a compliance requirement. The Fifth EITI Report, which covers the 2023/24 financial year and is the latest in a series dating back to 2019/20, recommends strengthening institutional arrangements for EITI implementation, improving the quality and accessibility of sector data, and enhancing transparency in beneficial ownership and mineral licensing. The reports also call for better disclosure of revenue and financial information, alongside expanded reporting on environmental and climate-related issues.
Improved beneficial ownership disclosure is important because it enables the Government and the public to establish who ultimately owns or controls companies benefiting from mineral licences. Greater transparency in mineral licensing can strengthen accountability in the allocation of mineral rights and reduce opportunities for irregularities, according to the Government. For businesses and investors, predictable regulations, transparent licensing procedures and reliable industry information can create a more stable operating environment and attract responsible investment to support mineral exploration, processing and value addition.
The Government has also highlighted the need to develop activities beyond extraction, including local processing, manufacturing and the provision of services to mining companies. Such investments could expand business opportunities, create employment and increase the contribution of the mineral sector to the wider economy. The Fifth EITI Report places renewed emphasis on Government agencies and industry stakeholders to translate transparency commitments into improved revenue collection, stronger regulation and greater domestic economic benefits from Uganda's mineral wealth.