9 IMPORTANCE OF THE MINING SECTOR TO UGANDA’S DEVELOPMENT

9 IMPORTANCE OF THE MINING SECTOR TO UGANDA’S DEVELOPMENT
  • It has earned Uganda foreign exchange through exportation of minerals like copper by 2003/2004. The exchange earned has been used to for further development.




  • The mining industry has provided employment opportunities to Ugandans. Today the industry is estimated to employ more than 15,000 people and by 1970s Kirembe copper mine were employing thousands of Bakiga and Bakonjo, thus earning income for better standards of living.
  • Mining facilitates urbanization in Uganda, foristance Kasese, Kirembe and Katwe towns grew up as a result of copper and salt mining. Also Tororo and Hima towns from limestone mining and prospects of Masindi and Hoima to develop due to oil exploitation.
  • The industry leads to development of important infrastructure of roads, railway, electricity, education and health facilities. Foristance Kirembe mines Secondary School in Kasese, Jinja-Kampala-Kasese railway line to transport copper, all these leads to further development of Uganda.




  • Mining industry provides market to agricultural products of food to feed the workers in the mines; this explains why the mubuku irrigation scheme was set up in Kasese to produce constant food supply to workers in Kirembe mines.
  • It has helped to diversify Uganda’s economy and has avoided over dependency on agricultural sector. This means there is increased foreign exchange, income and general development of the country.
  • It has improved on Uganda’s international relationship with mineral importers such as China and USA. This has lead to political stabilities and encouraged international trade.
  • The mining industry has fetched a lot of revenue to the government treasury through licenses given to mining companies and taxing miners. The revenue has been used to set up schools and health units.
  • It has led to industrialization in Uganda with industries like Hima and Tororo cement industries which use limestone mineral.




  • Mining has boosted the tourism sector through attracting foreign tourists for copper, iron ore, salt, etc thus earning Uganda foreign exchange.

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