Uganda must add value to create jobs or lose out

Uganda should process more of its minerals before exporting them if it wants to create jobs, strengthen local industries and earn more from its natural resources, industry leaders have said.

They argue that simply exporting raw minerals allows other countries to benefit from the manufacturing and value that could instead be created within Uganda.

The call was made in Kampala during the Uganda Catalyst Summit 2026, where policymakers, investors and industry experts discussed how Uganda can make better use of its growing mineral sector.

Their message was clear: the country’s long-term prosperity will depend not only on how much it mines, but also on what it does with those minerals after they are extracted.

At the centre of the discussion was the concept of value addition**, **the process of turning raw minerals into more refined or finished products before they are sold. Instead of exporting minerals in their raw state, countries can process, refine or manufacture them into products that command much higher prices on international markets.

Daphine Nimusiima, head of operations at the Uganda Chamber of Energy and Minerals (UCEM), said Uganda’s mineral wealth should become a driver of industrial growth rather than remain a source of unprocessed exports.

“Value addition is no longer an option. It is essential if Uganda is to build a competitive industrial economy and maximise the benefits from its natural resources,” Nimusiima said.

Her remarks come as Uganda continues to expand exploration and development of valuable minerals, including gold, cobalt, tin, tungsten and rare earth elements. Many of these minerals are in growing global demand because they are used in products such as electric vehicle batteries, electronics and renewable energy technologies.

According to Nimusiima, the challenge is to ensure that these resources support industries inside Uganda instead of being exported in their raw form to be processed elsewhere.

She also called for a broader approach to local content, a policy that encourages Ugandan businesses and workers to participate in the country’s mining industry. Rather than viewing local content simply as a legal requirement, she said it should be used to build strong domestic companies capable of providing services throughout the mining sector.

“Local content should not simply be viewed as compliance. It is a strategy for developing domestic industries, creating jobs and strengthening Uganda’s productive capacity,” she said.

Industry participants said stronger local participation would benefit far more than the mining industry alone. Companies involved in engineering, equipment supply, transport, manufacturing and mineral processing could all expand, creating employment opportunities and strengthening Uganda’s industrial base.

They also argued that processing minerals locally would allow the country to retain a greater share of the wealth generated from its natural resources instead of exporting that value to overseas manufacturers.

The discussions reflected a wider shift taking place across Africa. Increasingly, mineral-rich countries are investing in processing plants and manufacturing industries to move beyond exporting raw commodities.

Experts said countries that process their own minerals tend to earn more from exports, attract additional investment and are better able to withstand swings in global commodity prices.

For Uganda, participants said, the opportunity is to use its growing mineral sector as a foundation for wider industrial development. Producing finished or semi-finished mineral products could increase export earnings, create skilled jobs and generate more government revenue.

However, speakers cautioned that achieving these goals will require substantial investment. Building mineral processing industries depends on reliable electricity, modern infrastructure, financing, advanced technology and a skilled workforce.

Energy emerged as one of the biggest challenges. Processing minerals through activities such as smelting and refining consumes large amounts of electricity, making affordable and dependable power essential for any future expansion.

By the close of the summit, participants agreed that Uganda’s success should no longer be measured only by the amount of minerals extracted from the ground. Instead, they said, the country’s future prosperity will depend on its ability to transform those resources into higher-value products at home.

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