3171. Uganda's Mining Legal Regime: Addressing Illicit Financial Flows (IFFs), Risks and Revenue Loss in the Mineral Supply Chain
- Author:
- Onesmus Mugyenyi, Paul Twebaze, Phoebe Atukunda, Eugene Ssemakula, Peter Watua, and Oscord Mark Otile
- Publication Date:
- 01-2025
- Content Type:
- Research Paper
- Institution:
- Advocates Coalition for Development and Environment (ACODE)
- Abstract:
- Uganda's rich mineral endowment holds immense potential for economic development. However, illicit financial flows (IFFs) risks threaten to undermine this potential by diverting revenue away from critical national priorities. IFFs can occur at various stages of the mineral supply chain, from licensing and exploration to production and exportation. These illicit flows not only deprive the government of the much-needed domestic revenue but also hinder transparency and accountability within the sector. While the mining sector has in the past contributed significantly to Uganda’s economy reaching a peak of up to 30% of export revenue in the 1950S and 1960; the contribution has in the last few years declined to 2.2% of the country's GDP (Nyakabwa & Wepukhulu, 2023). This decline is partly attributed to illicit financial flows. As domestic revenue mobilization becomes increasingly important for Uganda’s long-term development, curbing illicit financial flows in the mining sector remains central to realising this goal. This briefing paper examines Uganda's current mining legal regime and its effectiveness in addressing IFFs risks along the mineral supply chain. It also identifies key, strengths, and gaps in the existing mining legalregime, and proposes recommendations for strengthening the legal and regulatory safeguards. By plugging these leaks in the system, Uganda’s mineral wealth will translate into tangible benefits for its citizens thus achieving economic development.
- Topic:
- Mining, Risk, Supply Chains, Minerals, Illicit Financial Flows, and Revenue
- Political Geography:
- Uganda and Africa