Limited access to affordable financing is slowing Uganda's efforts to eliminate mercury use in artisanal and small-scale gold mining, with stakeholders warning that many miners cannot afford safer technologies and equipment.
The concerns were raised at the fourth annual planetGOLD Uganda Stakeholders Meeting in Kampala, which brought together government officials, development partners, financial institutions and mining sector representatives to discuss ways of accelerating the adoption of mercury-free mining practices.
Uganda's artisanal and small-scale gold mining sector supports an estimated 70,000 miners, many of whom depend on the activity for their livelihoods. However, the sector continues to grapple with informality, inadequate equipment, limited access to credit and the use of mercury in gold processing.
Stakeholders said that although safer alternatives are available, the cost of acquiring processing equipment and upgrading mining operations remains prohibitive for many small-scale miners.
Follow us on WhatsApp | LinkedIn for the latest headlines
Bob Paul Lusembo, Head of Micro Business at Equity Bank, said financial institutions needed to develop solutions that address the broader needs of mining communities rather than relying solely on conventional lending.
He said support should cover financial literacy, equipment acquisition and the formalisation of mining businesses to enable operators to adopt safer and more sustainable practices.
"If we are to ensure a safe and sustainable mining industry that contributes to the development of this country, we need to finance the entire value chain," Lusembo said.
The health risks associated with mercury use were also highlighted during the meeting, with participants sharing testimonies of miners who have experienced long-term health effects linked to exposure.
Mercury is a toxic substance that can damage the nervous system and contaminate water sources and ecosystems, exposing miners and surrounding communities to serious health and environmental risks.
Representing the National Environment Management Authority, Dr John Ekure urged mining stakeholders to prioritise human health and occupational safety, cautioning against sacrificing workers' wellbeing in pursuit of economic gains.
Participants called for stronger collaboration between government agencies, financial institutions, development partners and mining communities to make safer technologies more accessible and accelerate the transition away from mercury.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Magara Siraje, Extractive Industries Coordinator at Oxfam Uganda, said responsible mineral exploitation could contribute to the country's export growth but emphasised the need to improve miners' access to financial services and technical support.
Stakeholders said formalising mining groups would also be critical in improving their access to credit, enabling financial institutions to assess and support mining enterprises while encouraging better operating standards.
They concluded that closing the financing gap, supporting formalisation and investing in safer processing technologies would be essential to building a mercury-free gold mining sector that protects livelihoods, workers' health and the environment.
