Financing Gap Hobbles Uganda’s Shift to Mercury-Free Gold Mining

November 9, 2026 in Business, Financial Services, Land & Agriculture by Editor

Limited access to affordable credit is keeping Uganda’s estimated 70,000 artisanal gold miners dependent on hazardous mercury-based processing, despite the availability of safer alternatives.

 

Limited access to affordable finance is slowing Uganda’s transition to mercury-free artisanal gold mining, leaving thousands of miners reliant on hazardous processing methods despite the availability of safer technologies.

Stakeholders at the planetGOLD Uganda Fourth Annual Stakeholders Meeting in Kampala said the high cost of acquiring processing equipment and upgrading mining operations was preventing small-scale miners from adopting alternatives to mercury, exposing workers and surrounding communities to health and environmental risks.

Uganda’s artisanal and small-scale gold mining sector supports an estimated 70,000 miners, many of whom depend on the activity for their livelihoods. However, widespread informality, inadequate equipment and limited access to credit continue to constrain efforts to improve productivity, safety and environmental compliance.

The financing challenge is particularly significant because the transition requires more than replacing mercury with alternative processing methods. Miners also need capital to acquire equipment, improve operations, develop commercially viable enterprises and formalise their businesses.

Bob Paul Lusembo, Equity Bank’s Head of Micro Business, said financing interventions needed to address the wider mining value chain rather than rely exclusively on conventional lending.

“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.

Lusembo called for financing to be accompanied by financial literacy, support for equipment acquisition and assistance to mining enterprises seeking to formalise their operations.

The meeting also heard personal accounts illustrating the consequences of continued mercury exposure, including testimony from a miner who reported long-term health effects associated with the substance.

Mercury can cause serious neurological damage and contaminate water sources and ecosystems. Its continued use presents a challenge to Uganda’s efforts to make small-scale mining safer and more environmentally sustainable. Uganda’s mining regulatory framework also prohibits its use.

Representing the National Environment Management Authority (NEMA), Dr John Ekure urged miners and other stakeholders to place human health and environmental protection ahead of short-term economic returns.

Magara Siraje, Extractive Industries Coordinator at Oxfam Uganda, said responsible mineral exploitation could contribute to export growth, but would require better access to financial services and technical support for small-scale operators.

The discussions pointed to a structural challenge in Uganda’s gold sector where mercury-free technologies offer a pathway towards safer production, but their adoption depends on whether miners operating largely outside formal financial systems can afford the transition.

Stakeholders called for closer collaboration between government agencies, financial institutions, development partners and mining communities, identifying access to finance and the formalisation of mining groups as critical to accelerating the shift.