KAMPALA – Limited access to affordable financing is hindering Uganda’s efforts to eliminate mercury use in artisanal and small-scale gold mining, with stakeholders 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 during the planetGOLD Uganda Fourth Annual Stakeholders Meeting in Kampala, which brought together government officials, development partners, financial institutions and mining sector representatives to discuss 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 depend 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 are available, the cost of acquiring processing equipment and improving mining operations remains beyond the reach of many miners.
Speaking at the meeting, Bob Paul Lusembo, Head of Micro Business at Equity Bank, said financing solutions must go beyond traditional loans to address the broader needs of mining communities, including financial literacy, equipment acquisition and business formalisation.
“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 human cost of unsafe mining practices was highlighted 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 demonstrate the dangers miners face when they continue using hazardous substances without adequate protection or access to safer alternatives.
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 requirement and an environmental priority.
Representing the National Environment Management Authority (NEMA), Dr John Ekure urged miners and other sector stakeholders to prioritise human health, cautioning against pursuing economic gains at the expense of workers’ safety.
Participants also called for stronger 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 emphasised the need to improve miners’ access to financial services and technical support.
Stakeholders concluded that closing financing gaps and supporting the formalisation of mining groups would be critical to achieving a mercury-free gold mining sector while protecting miners’ livelihoods, public health and the environment.
