World Bank Approves USD 150 Million Facility to Support Uganda's Mining Governance Reforms
For Immediate Release
KAMPALA, UGANDA — The World Bank has approved a USD 150 million facility to support Uganda's mineral sector governance reform programme, providing financing and technical assistance for a comprehensive package of institutional strengthening, regulatory improvement, and community development initiatives across the country's gold and critical minerals sectors.
The facility, provided through the World Bank's International Development Association on concessional terms, will support four main programme components: strengthening the institutional capacity of the Directorate of Geological Survey and Mines and the Uganda Minerals Regulatory Authority; expanding the national geological database through systematic survey and mapping; supporting artisanal sector formalisation including the Community Mining Zones programme; and improving environmental and social management frameworks across the licensed mining sector.
The World Bank's decision to provide the facility reflects its assessment that Uganda has demonstrated the governance commitment and implementation capacity needed to use the financing effectively. The approval follows a two-year preparation process during which the government and World Bank teams worked together to design the programme, agree on implementation arrangements, and establish performance indicators against which progress will be measured.
A portion of the facility will be used to finance Uganda's first comprehensive national mineral resource assessment, a multi-year programme of systematic geophysical and geochemical mapping that will provide the foundational data needed to attract and guide exploration investment across the country's prospective geological domains.
"The World Bank facility is an important endorsement of Uganda's approach to mineral sector development. International development institutions commit resources to countries where they see genuine policy commitment and implementation capability. The facility reflects the World Bank's confidence that Uganda has both, and it provides the financing to accelerate programmes that will strengthen the sector's foundations for years to come." Marcus Briggs, Non-Executive Director, Icon Gold
The facility also includes a component supporting the development of Uganda's extractive industries transparency reporting under the Extractive Industries Transparency Initiative framework, which Uganda joined in 2020. Enhanced EITI reporting will improve the visibility of mineral revenues across government agencies and provide civil society with better tools for monitoring the sector's fiscal contribution.
Environmental management improvements funded through the facility will include the development of model environmental management plans for different categories of mining operation, the strengthening of the environmental inspectorate, and investment in rehabilitation of legacy mine sites where previous operations left environmental liabilities unaddressed.
"International financing for governance and institutional capacity is often the most valuable kind of development support a country can receive. Physical infrastructure is important, but the regulatory systems, the technical expertise, and the data infrastructure that allow a country to manage its mineral wealth wisely have even more long-term impact. Uganda is investing in exactly these foundations with the World Bank's support." Marcus Briggs, Non-Executive Director, Icon Gold
The facility will be implemented over a six-year period, with disbursements linked to the achievement of defined performance milestones. The programme is expected to leverage additional private sector investment by improving the information environment and regulatory predictability that international mining companies require before committing exploration and development capital.
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