Lugoloobi Challenges Stakeholders to Maximise Value From Minerals
Minister of State for Planning, Amos Lugoloobi has challenged stakeholders in the extractive industry to ensure Uganda derives greater economic value from its mineral resources through improved governance, responsible investment and effective revenue management.
Lugoloobi said the country must maximise the benefits of its natural resources. “Are we maximising the value of our mineral resources before they leave the country?” Lugoloobi asked.
He made the remarks today while opening the national dissemination of the Fifth Extractive Industries Transparency Initiative (EITI) Report at Protea Hotel in Kampala.
Lugoloobi said Uganda's extractive sector generated approximately Shs 663.24 billion in revenue during the financial year 2023/24, with mining and quarrying accounting for Shs 336.97 billion.
He noted that the figures demonstrate the economic contribution of the sector, adding that this contribution should prompt stakeholders to examine whether Government is collecting all the revenues and adequately monitoring mineral production, exports and company payments.
“Are we collecting all the revenues due to Government?” he asked, pointing to the need to strengthen revenue administration and address potential weaknesses in tax compliance, licensing and reporting.
Lugoloobi said information generated through EITI reporting provides Government with a better understanding of production volumes, mineral exports, company operations and fiscal payments.
The Minister said this information can help identify under-reporting, weaknesses in tax compliance and opportunities to improve the collection of royalties, corporation tax, withholding tax and surface rentals.
He emphasised that transparency in the extractive industry should go beyond publishing periodic reports, describing EITI as an important instrument for economic management and domestic revenue mobilisation.
“EITI should not be viewed simply as a reporting exercise or an obligation to publish periodic reports. It is a governance and economic management instrument that can help Uganda mobilise more domestic revenue and derive greater value from its natural resources,” he said.