Baseline Assessment of Development Minerals in Uganda

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Baseline Assessment of Development Minerals in Uganda Baseline Assessment of Development Minerals in Uganda Volume 1 March, 2018 Programme Partners: ACP-EU Development Minerals Programme. Implemented in Partnership with UNDP www.developmentminerals.org Baseline Assessment of Development Minerals in Uganda Volume 1 March, 2018 Programme Partners: ACP-EU Development Minerals Programme. Implemented in Partnership with UNDP www.developmentminerals.org Acknowledgements: Special thanks to the Uganda Ministry of Energy and Mineral Development (MEMD), Directorate of Geological Survey and Mines, the District Local Government Ofcials, and the many ASM community members – women and Copyright © 2018 by the United Nations men miners, trades and small enterprise owners Development Programme – who provided signifcant input throughout the feld mission. The study benefted greatly from UNDP Uganda the support of: Maximin Emagna, ACP Secretariat; Plot 11, Yusuf Lule Road, Nakasero Sergio Piazzardi, European Commission, P.O Box 7184, Kampala, Uganda International Cooperation and Development; Degol Tel: (+256) 417-112100 Hailu, Godefroid Bigirimana, Asan Amza, Nicholas www.developmentminerals.org Burunde, Wilson Kwamya and the operational and support staff at UNDP; and fnally the members of the Uganda Country Working Group of the ACP-EU All rights reserved. No part of this publication Development Minerals Programme who provided may be reproduced, stored in a retrieval system or crucial input and suggestions: Data Gabriel (Chair), transmitted, in any form or by means, electronic, Vincent Kedi (Programme Focal Point), Agnes Alaba mechanical, photocopying, recording or otherwise, Kuterema, Catherine Nyakecho and Godfrey Bahati, without prior permission. MEMD; Wilson Kwamya and Hope Kyarisiima, Authors: Jennifer Hinton, Olivia Lyster, Juliet UNDP; Christian Raitz von Frentz, EU Delegation; Katusiime, Moreen Nanteza, Gilbert Naulo, Adam Catherine Wabomba, Uganda Chamber of Mines and Rolfe, Farooq Kombo, Holger Grundel, Kate MacLeod, Petroleum; Don Bwesigye and Chris Musiime, Africa Hope Kyarisiima, Lacina Pakoun, Caroline Ngonze Centre for Energy and Mineral Policy; Ruth Mbabazi, and Daniel M. Franks Environmental Women in Action; Philloh Aryatwijuka, ECO - Uganda; Rose Gertrude Gamwera, Uganda Series Editors: Daniel M. Franks, Lacina Pakoun, Local Government Association; Patience Nsereko, Caroline Ngonze National Environment Management Authority; Patrick Etoko, Ministry of Works and Transport; and About the authors John V. Lutaya, Ministry of Lands Housing and Urban This study was designed by the ACP-EU Development. Development Minerals Programme and performed by This study is published as part of the publication Levin Sources. Jennifer Hinton led the Levin Sources series: Development Minerals in Africa, the research team and is lead author of the report. Caribbean and the Pacifc Daniel Franks led the study design and is the Chief Technical Advisor and Programme Manager of the About the ACP-EU Development Minerals ACP-EU Development Minerals Programme. Programme: The ACP-EU Development Minerals J.H., O.L., A.R., L.P., C.N. and D.F designed the Programme is an initiative of African, Caribbean research; J.H., O.L., J.K, M.N., G.N, A.R., and F.K. Pacifc (ACP) Group of States, coordinated by performed the research; J.H., O.L., M.N., G.N, A.R., the ACP Secretariat, fnanced by the European F.K. and D.F analysed the data; J.H., O.L., J.K, M.N., Commission and United Nations Development G.N, A.R., F.K., K.M., H.G, H.K., L.P., C.N. and D.F Programme (UNDP) and implemented by UNDP. wrote and edited the study. This €13.1 million capacity building program aims to build the profle and improve the management Cover design: Ana Beatriz Dominguez Organero of Development Minerals in Africa, the Caribbean and the Pacifc. The sector includes the mining Cover Photo: Aggregate miner, Masaka, Uganda. of industrial minerals, construction materials, Credit Olivia Lyster; 2017. dimension stones and semi-precious stones. Baseline Assessment of Development 3 Minerals in Uganda. Volume 1 TABLE OF CONTENTS 5 Executive summary 16 Acronyms and Abbreviations 19 Introduction 22 Approach & Methodology 31 Profle of the Development Minerals Sector 72 Policy, Legal and Institutional Framework 110 Institutional and Technical Operating Context 130 Environmental, Occupational And Social Impact Analysis 180 Conclusions & Recommendations 185 Bibliography 196 Annex 1: Geology, Geochemistry and Mineralogy of Selected Mineral Occurrences 202 Annex 2: Main Development Minerals Production Sites and Areas 206 Annex 3: Type and Accessibility of Geodata 207 Annex 4: Table of Networking Events 209 Annex 5: Table of Guides to Investment in Uganda 210 Annex 6: Table of Training Centres 211 Annex 7: Table of Financing Options 212 Annex 8: Table of Organisations and Associations 214 Annex 9: Lists of equipment and prices at Central Materials Lab 221 Annex 10: Selected Research on Development Minerals in Uganda Baseline Assessment of Development 5 Minerals in Uganda. Volume 1 Executive Summary The ACP-EU (African, Caribbean and Pacifc Group of States, with support from the European Union) Development Minerals Programme, a pioneering three-year, multi-country initiative implemented by the United Nations Development Programme (UNDP), seeks to build the profle and improve the management of Development Minerals. Development Minerals are minerals and materials that are mined, processed, manufactured and used domestically in industries such as construction, manufacturing, infrastructure and agriculture. Through capacity building of a diverse range of stakeholders in government, private sector and civil society, the ACP-EU Development Minerals Programme aims to: (i) Enhance employment and incomes, including employment and incomes of women; (ii) Improve the policy and regulatory environment; (iii) Minimize environmental impacts on communities ; (iv) Address individual and community rights and preventing conflict; (v) Ensure decent working conditions and (vi) Facilitate South-South cooperation and cross-country learning. In order to support these aims and, in particular, country-level efforts of the ACP-EU Development Minerals Programme in Uganda, Levin Sources has been contracted to undertake a comprehensive “Baseline Assessment and Value Chain Analysis of Development Minerals in Uganda”. With a particular emphasis on artisanal and small-scale (ASM) operators and related micro- and small-enterprises (MSEs), the study aims to provide a foundation for evidence-based policy and decision-making in Uganda by profling the economic signifcance, scope and potential of the sector, as well as fostering an understanding of the sector’s technical, legal, social, occupational and environmental challenges and opportunities. Approach and Methodology The study objectives were fulflled through collection, analysis and interpretation of primary and secondary data collected from a range of sector stakeholders across all steps of Development Minerals value chains from mine to fnal market. Primary data collection consisted of 42 site assessments in 22 districts, focus group discussions and interviews with 434 participants from Artisanal and Small-scale Mining (ASM) sites, 73 Points of Sale and 10 district governments as well as consultative meetings with central private and public-sector stakeholders. Existing secondary data has been used to supplement and where possible validate primary data. Whilst fgures presented are not statistically signifcant, they allow for a representative picture of the largely undocumented Development Minerals sector. Whilst there are many different kinds of Development Minerals, eight were chosen as focus minerals for the Baseline Study, and four of these eight were selected in consultation with the Country Working Group for more comprehensive market study and value chain analysis. The focus minerals in the baseline include: clay, stone aggregate, dimension stones, sand, limestone, salt, kaolin and gypsum, the frst four of which were chosen for the value chain analysis undertaken in a second phase of work. Results of the latter are presented in Volume 2 of this report “Market Study and Value Chain Analysis of Selected Development Minerals in Uganda.” 6 ACP-EU Development Minerals Programme. Implemented in Partnership with UNDP Development Minerals Context A land-locked country located in East Africa, the Republic of Uganda was one of the 15 fastest growing economies in the world from 1987-2010 with GDP growth averaging at 7% per year, declining signifcantly to 3.9% in Fiscal Year (FY) 2016/17. Although Uganda has made signifcant progress towards the millennium development goals, including by achieving the target of halving the number of people living in extreme poverty before 2015, many development challenges remain, including high school-dropout rates, high unemployment and 25% of Ugandans still living in extreme poverty. Against this backdrop, the Government of Uganda (GoU) has prioritized job creation and massive infrastructure improvements among the critical development priorities outlined within its Uganda Vision 2040. In a drive to stimulate economic growth, reduce business costs and support progress towards industrialization, the GoU aims to rehabilitate and construct 30,000km2 of roads, key bridges, and to build 1.6 million housing units by 2020. The GoU additionally recognizes that micro, small and medium enterprises (MSMEs) constitute 90% of Uganda’s private sector and contribute 20% of the GDP. Through its current National Development Plan,
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