At the 2nd Uganda-Tanzania Business Forum, held in Dar es Salaam from May 23-24, experts emphasized the need for both nations to address gaps in their mining sectors. This initiative is crucial for unlocking financial and regulatory opportunities that can drive growth, foster economic development, and advancing socio-economic transformation.
Sebastian Kolowa, who moderated the panel discussion on the mining industry value chain, highlighted that Uganda and Tanzania are emerging economies with significant potential for revenue generation, industrial development, and socio-economic transformation through the mining sector.
He stressed the importance of strategic interventions to maximize the benefits from their rich mineral resources.
Kolowa and other experts pointed out that despite the substantial mineral wealth in both countries, several challenges hinder the mining sector's full potential. These include inadequate infrastructure, lack of modern technology, insufficient funding, and regulatory bottlenecks.
Addressing these issues, they argued, is essential for the mining sector to become a cornerstone of economic growth and development in Uganda and Tanzania.
One of the key recommendations from the forum was the need for both governments to create a conducive environment for investment in the mining sector. This involves streamlining regulatory frameworks to make them more investor-friendly, reducing bureaucratic red tape, and ensuring transparency and accountability in the issuance of mining licenses.
Experts also called for stronger enforcement of existing laws to curb illegal mining activities, which not only deplete resources but also pose significant environmental risks.
Kolowa emphasized the importance of infrastructure development. Efficient transportation networks, reliable energy supply, and modern communication systems are vital for the effective operation of mining activities. He suggested public-private partnerships as a viable solution to bridge the infrastructure gap, noting that collaborative efforts can mobilize the necessary resources and expertise.
The forum also emphasized the need for capacity building within the mining sector. Investing in education and training programs for local communities can equip them with the skills needed to participate in mining activities, thereby promoting local content and ensuring that the benefits of mining extend to the broader population. This approach aligns with both countries' development plans, which prioritize inclusive growth and socio-economic empowerment.
Financing remains a critical challenge for the mining sector in Uganda and Tanzania. Traditional banks are often reluctant to fund mining projects due to perceived risks. The forum encouraged the exploration of alternative financing mechanisms, such as mining-specific funds and international partnerships, to attract the necessary capital. Strengthening financial institutions and creating tailored financial products for the mining industry can also help mitigate these challenges.
Kolowa and other panelists also called for increased collaboration between Uganda and Tanzania. By sharing best practices, joint ventures, and harmonizing policies, the two nations can create a more robust and competitive mining sector. Regional cooperation can also enhance their bargaining power in the global market, ensuring better terms for their mineral exports.
The 2nd Uganda-Tanzania Business Forum highlighted the critical steps needed to address the gaps in the mining sectors of Uganda and Tanzania. By focusing on regulatory reforms, infrastructure development, capacity building, and innovative financing solutions, both countries can unlock the full potential of their mining industries.
This, in turn, will contribute to their broader economic goals and foster sustainable development for their populations. As emerging economies, Uganda and Tanzania have a unique opportunity to transform their mineral wealth into long-term prosperity, provided they take decisive and collaborative action.
