Access to finance slowing Uganda’s shift to mercury-free gold mining
Kampala, Uganda | ENTEBBENEWS.NET | Limited access to affordable financing is hindering Uganda’s efforts to eliminate mercury use in artisanal and small-scale gold mining, stakeholders have said, warning that thousands of miners remain exposed to serious health and environmental risks because safer technologies are beyond their financial reach.
The concerns were raised at the planetGOLD Uganda Fourth Annual Stakeholders Meeting in Kampala, where government officials, development partners, financiers and mining sector representatives discussed strategies for promoting mercury-free mining practices.
Uganda’s artisanal and small-scale gold mining sector supports an estimated 70,000 miners, many of whom rely on mining as their primary source of income. However, the sector continues to face challenges including informality, inadequate equipment, limited access to credit and the continued use of mercury in gold processing.
Stakeholders warned that although mercury-free technologies exist, the cost of acquiring processing equipment and improving mining operations remains out of reach for many miners.
Speaking at the meeting, Bob Paul Lusembo, Head of Micro Business at Equity bank, said financing solutions must go beyond traditional loans and support the broader needs of mining communities, including financial literacy, equipment acquisition and business formalization.
“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,” he said.
The issue was illustrated through testimonies shared during the meeting, including that of a miner who reported suffering long-term health effects linked to mercury exposure. Participants said such experiences underscore the human cost of unsafe mining practices.
Mercury is widely recognised as a hazardous substance that can damage the nervous system and contaminate water sources and ecosystems. Uganda’s mining regulations prohibit its use, making the adoption of safer alternatives both a legal and environmental priority
Representing the National Environment Management Authority (NEMA), Dr John Ekure urged miners and sector stakeholders to prioritize human health, cautioning against pursuing economic gains at the expense of workers’ safety.
Participants also called for greater collaboration among government agencies, financial institutions, development partners and mining communities to accelerate the transition to safer mining methods.
Magara Siraje, Extractive Industries Coordinator at Oxfam Uganda, said responsible exploitation of mineral resources could support Uganda’s export growth, but stressed the need to improve miners’ access to financial services and technical support.
Stakeholders concluded that addressing financing gaps and supporting formalization of mining groups will be critical if Uganda is to achieve a mercury-free gold mining sector while protecting livelihoods and the environment
