Harnessing Uganda’s Mineral Wealth: Pathways to sustainable growth

1st, Oct 2024 Share This

The 13th Annual Mineral Wealth Conference 2024, held at Serena Hotel, Kampala, brought together key players in Uganda’s Mining sector to discuss and strategize on leveraging the country's vast mineral resources for sustainable development and economic transformation. Themed “Unlocking Uganda's true value through investment”, the conference aimed to foster partnerships between the government, private sector, and investors. Stakeholders at the conference included high-level government officials, industry leaders, mining experts, insurance & reinsurance professionals.

Hon. Dr. Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development, the Guest of Honour emphasized the urgent need for increased financing in the mining sector, particularly for critical minerals like phosphates. She emphasized government's commitment to creating a conducive environment for private sector growth and fostering collaboration between miners, the government, and private entities. Dr. Nankabirwa also announced significant milestones, such as the completion of the redevelopment of Kilembe Mines and the formation of the Uganda National Mining Company, which will manage the state’s commercial interests.

Hon. Dr. Ruth Nankabirwa Ssentamu, Minister of Energy and Mineral Development, addressing guests at the conference

The Minister also addressed the importance of miner safety, with a special focus on artisanal miners. She assured guests that regulations are in place to promote national content development and ensure the safety of all involved in the industry.

Rt. Hon. Thomas Tayebwa, Deputy Speaker of Parliament, further highlighted the mining sector’s pivotal role in unlocking Uganda’s economic potential. He called for the formulation of laws that support the business community and stressed the need for transparency and efficiency in the sector. Tayebwa also urged miners to adopt international Environmental, Social, and Governance (ESG) standards to mitigate the environmental impact of their activities.

Rt. Hon. Thomas Tayebwa, Deputy Speaker of Parliament delivering his speech at the conference

Moderating a session titled "Unlocking Africa's True Value: Derisking Mining Investments," our CEO, Jonan Kisakye discussed the role of insurance in supporting investors by mitigating risks within the mining sector. He noted that insurance is essential for ensuring the safety of employees, the most valuable asset of any mining company. Jonan emphasized that comprehensive insurance policies tailored to the unique risks of mining are crucial for sustainable mining business.

Jonan Kisakye, UIA CEO moderating the insurance panel discussion at the conference

During the session, James Maguru, General Manager at UAP Old Mutual Insurance, explained that the diversity of mining operations requires customized insurance solutions to cover property damage, business interruptions, third-party liabilities, and mandatory policies. Joshua Akena, Head of Operations at Old Mutual Life Assurance, also spoke about the Group Life Cover as a critical safety net for employees, highlighting the unique risks miners face, such as trauma and critical illness, adding that Insurance provides income protection and worker compensation in cases of fatality.

James Maguru, General Manager at UAP Old Mutual Insurance, explaining about the need for customized insurance solutions for the mining operations

Ronald Musoke, CEO of Uganda Reinsurance Company, expounded on the role of reinsurance in enhancing the mining sector's capacity. He explained that reinsurance provides additional financial backing to insurance companies, allowing them to manage larger risks and offer comprehensive coverage for high-stake mining operations. Musoke highlighted the importance of risk distribution, which ensures full settlement in case of losses. He also emphasized the need for local content, encouraging Ugandan companies to participate actively in strengthening the sector by working closely with insurers and reinsurers to create a resilient financial safety net for mining investments.

Alexander Mukasa, CEO of Marsh Insurance Brokers, and Rita Kabayiza Mutesi, Vice Chairperson of the Insurance Brokers Association of Uganda (IBAU) highlighted the critical role of tailored insurance solutions in the mining sector. Mukasa emphasized that despite the significant risks involved, insurance remains affordable and essential for companies to manage assets and comply with Environmental, Social, and Governance (ESG) standards. Expanding on this, Ritah Kabayiza Mutesi explained that the complexity of the mining sector requires specialized insurance policies at each stage of the mining process, as different risks emerge throughout operations. They stressed that consulting insurance experts is vital for identifying and mitigating these diverse risks effectively.

Alexander Mukasa, CEO of Marsh Insurance Brokers highlighting the critical role of tailored insurance solutions for the mining sector

Hon. Phiona Nyamutoro, Minister of State for Mineral Development, reiterated the government's focus on value addition within the sector and commended efforts to align Uganda’s mineral resource management with Africa’s vision of a greener energy transition. She called for increased investment in the sector and urged the media to actively support government's agenda by helping to dispel misconceptions surrounding mining. Hon. Nyamutoro also emphasized the importance of environmental compliance for mining companies to ensure smooth operations and sustainable growth.

Hon. Phiona Nyamutoro, Minister of State for Mineral Development speaking at the conference

In conclusion, the 13th Mineral Wealth Conference 2024 positioned the mineral sector as a key driver of the country's economic transformation.

Group photo moment at the end of the insurance panel discussion at the conference