By Guest Writer
KCB Bank Uganda has called for increased investment and financing across Uganda’s mineral value chain to accelerate industrialization and enable the country to capture greater economic value from its mineral resources.
The call was made at the 15th Annual Mineral Wealth Conference, held on 29 and 30 September at Speke Resort Munyonyo under the theme ‘Beneath the Surface: Unlocking Africa’s Next Mining Powerhouse.’ The two-day summit brought together more than 1,500 delegates, 50 speakers, 55 exhibitors, 15 ministers and over 500 CEOs to examine the investment, policy and partnerships required to advance Africa’s mining sector.
Setting out the Government’s direction for the sector, the Minister of State for Energy, Hon. Sidronius Okaasai Opolot said, “Uganda’s mineral resources could drive industrial growth if investment extends beyond extraction to the entire value chain.” He noted that the central objective for Uganda and the continent should not simply be raw mineral extraction, but ensuring that maximum economic value remains within local economies.
“Our focus, therefore, must be developing the entire value chain of our minerals, from exploration and mining, to processing, beneficiation, refining, manufacturing, and other downstream industries,” Hon. Okaasai said. “The objective is to move from mineral potential to productive investment. We want to get the industries here, while ensuring that Uganda captures greater value from its mineral resources.”
Building on the value-addition agenda, Hon. Eng. Jonard Asiimwe Akiiki, Minister for Science, Technology and Innovation, focused on the industrial opportunity created when minerals are processed and transformed locally rather than exported as raw commodities.
“There’s no country which can develop by exporting raw materials. That is just romanticising the economy,” Hon. Eng. Asiimwe stated. “Once we move from raw materials to steel, machinery, vehicle parts, tools, and building systems, the value rises at every stage.”
He added that industrial progression creates broad economic multipliers across engineering, transport, finance, taxation, intellectual property, and skilled employment.
The Ministry of Energy and Mineral Development continues to prioritise value addition, investment promotion, geological mapping, sector regulation and support for artisanal and small-scale miners.
As Uganda seeks to translate growing mineral output into greater domestic economic value, access to appropriately structured finance will be critical to moving businesses from licences and exploration into production, processing, trade and manufacturing.
Addressing delegates on the final day, Timothy Wilkins Okanya, Corporate Banking at KCB Bank Uganda, outlined how financial institutions can help close funding gaps across the mineral value chain, from early-stage operations and equipment acquisition to processing, trade and downstream expansion.
“The gap between what’s under the ground and what reaches the market is the financial gap,” Okanya said. “And that’s actually good news because financing gaps can be fixed.”
Okanya highlighted KCB Bank Uganda’s capacity, backed by the Group’s regional network, to structure financing across the mineral value chain through working capital, trade finance, asset finance, supply chain finance, guarantees and foreign exchange solutions. He added that supporting artisanal and small-scale operators through formalisation and financial inclusion could strengthen their ability to access finance, grow their businesses and participate more meaningfully in the formal mineral economy.
“Every miner who enters the formal financial system becomes a potential business that we can support and finance as they grow,” Okanya noted.
Across East Africa, KCB Group has deployed more than US$100 million in financing to businesses and projects within the energy and mining sectors, demonstrating the Group’s capacity to support capital-intensive industries.
KCB Group’s presence across Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo gives businesses access to local market expertise, cross-border relationships and specialised corporate banking capabilities across seven markets.
Through this network, KCB supports businesses operating across energy and mining value chains, including activities in iron ore, gold and the East African Crude Oil Pipeline (EACOP) supply chain, among other areas.
Uganda’s opportunity now extends beyond extracting its mineral resources to building the businesses, industries and supply chains that can transform those resources into greater economic value. Achieving that ambition will require coordinated action across Government, investors, mining companies, local enterprises and financial institutions. KCB Bank Uganda remains committed to bringing its financial capacity, regional reach and sector expertise to that ecosystem, enabling businesses across the mineral value chain move from opportunity to productive investment. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
