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HOW TO OBTAIN A MINING LICENSE IN UGANDA

Published

2 years ago

March 2, 2025

To engage in mining activities beyond buying and selling minerals, one must acquire the appropriate mineral rights under the Mining and Minerals Act, 2022. These include:

Artisanal Mining License: For small-scale, manual mining activities.

Small-Scale Mining License: For mining operations with moderate investment.

Medium-Scale Mining License: For mining operations with significant investment but below large-scale thresholds.

Large-Scale Mining License: For major commercial mining operations.

Exploration License: For systematic mineral exploration.

Retention License: For holding a deposit with economic potential.

Mining Lease: For fully developed mining projects.

Mineral Dealer’s License: For buying, selling, and dealing in minerals.

PROSPECTING LICENSE

A Prospecting License is required before applying for an Exploration License. It is granted for one year and is non-renewable.

Requirements:

Individual applicants (Ugandan citizens only): Valid identification (Passport, Voter’s Card, Driving Permit, etc.) Executed Form I Payment of UGX 200,000 statutory fees

Company/Association: Certified copy of incorporation/registration, Certified copy of Articles and Memorandum of Association, Authority letter, Executed Form I Payment of UGX 800,000 statutory fees

EXPLORATION LICENSE

Granted for up to four (4) years, renewable once for up to three (3) years.

Requirements:

Valid Prospecting License
Submission of Prospecting License returns
Map of the desired area (1:50,000 scale)
Work program for exploration
Project brief
Executed Form II
Proof of financial capability

Fees:

UGX 2,000,000 application fee
UGX 75,000 per km² as annual mineral rent
UGX 345,000 for gazetting the grant

RETENTION LICENSE

Granted for up to three (3) years, renewable once for up to two (2) years.

Requirements:

Valid Exploration License
Board resolution of the company authorizing the application for a retention license
Feasibility study conducted by an accredited consultant
Other necessary information requested by the Minister

Fees:

UGX 7,000,000 application fee
UGX 200,000 per km² as annual mineral rent
UGX 345,000 for gazetting the grant

MINING LICENSES

Mining Licenses are categorized based on investment scale and operations.

Purpose

The Artisanal Mining Licence (AML) is issued to Ugandan nationals who wish to engage in small-scale, low-tech, manual mining operations. This licence is intended to regulate traditional, subsistence-based mining and ensure environmental and social compliance.

Validity

The AML is valid for up to 3 years and can be renewed for 2 years.
Exclusively reserved for Ugandan citizens (foreigners cannot apply).

Key Requirements

Proof of Ugandan citizenship
Completed Artisanal Mining Licence (AML) Application Form
Proof of mineral occurrence in the targeted mining area
Proof of technical competence (basic mining knowledge or training)
A statement of mining operations and planned capital expenditure
Provisional agreement with the landowner (for mining on private land)
Proposed production schedule and marketing plan for selling mined minerals
Environmental compliance measures (basic environmental protection steps)

Statutory Fees (UGX)

Application Fee: UGX 1,000,000
Registration Fee: UGX 1,000,000
Annual Mineral Rent: UGX 1,500,000
Renewal Application Fee: UGX 2,000,000
Gazette Grant Fee: UGX 345,000

Application Process

Register on the Mining Cadastre & Registry System (MCRS).
Download and complete the AML application form.
Submit the form online with all required supporting documents.
Pay the application fee (UGX 1,000,000).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, pay the licence and mineral rent fees.
Receive your Artisanal Mining Licence (AML), valid for 3 years.

Additionally

Exclusively for Ugandan nationals – foreigners must apply for a Small or Medium Scale Mining Licence.
Intended for small-scale, manual mining operations (no heavy machinery).
If mining on private land, written consent from the landowner is required.
AML holders must comply with basic environmental and safety regulations.

Small-Scale Mining License

Small-Scale Mining License Granted for up to five (5) years and renewable for up to three (3) years.

Purpose

The Small-Scale Mining Licence (SML) is issued to Ugandan nationals or registered companies intending to carry out mining operations in an area not exceeding 10 km². It is exclusively reserved for Ugandans and is meant for mining projects that require moderate investment and equipment.

Validity

The SML is valid for up to 5 years.
It can be renewed for 3 years at a time.

Key Requirements

Valid Prospecting License, Exploration License, or Retention License
Work program for mining operations
Executed Form IV
Proof of mineral occurrence in the targeted mining area
Proof of technical competence (CVs and academic qualifications)
A statement outlining mining operations and planned capital expenditure
Provisional agreement with the landowner (if the land is privately owned)
Proposed value addition program (optional)
Proposed marketing plan for the sale of mineral production
Environmental protection plan (basic waste management & site restoration plan)
Financial capability statement (proof of investment capacity)

Statutory Fees (UGX)

New Application / Renewal Fee: UGX 10,000,000
Registration Fee: UGX 1,000,000
Annual Mineral Rent: UGX 100,000 per hectare
Gazette Grant Fee: UGX 345,000

Application Process

Register on the Mining Cadastre & Registry System (MCRS).
Download and complete the SML application form.
Submit the form online with all required supporting documents.
Pay the application fee (UGX 10,000,000).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, pay the licence and mineral rent fees.
Receive your Small Scale Mining Licence (SML), valid for 5 years.

Additional Notes

Exclusively for Ugandans – foreign investors must apply for a Medium or Large Scale Mining Licence.
Mining area must not exceed 10 km².
Allows the use of small-scale machinery but prohibits large industrial operations.
Holders must comply with environmental regulations and community engagement rules.

Medium-Scale Mining Licence (MML) – Uganda (2024)

Medium-Scale Mining License Granted for up to ten (10) years or the life of the ore body, renewable for up to seven (7) years.

Purpose

The Medium-Scale Mining Licence (MML) is granted to companies or individuals intending to conduct mining operations on a medium scale, covering an area not exceeding 50 km². This licence is meant for mining projects that require moderate to large investments in machinery, labor, and processing facilities.

Validity

The MML is valid for up to 10 years.
It can be renewed for 7 years at a time.

Key Requirements

A joint venture partnership registered in accordance with the Partnership Act 2010 comprising of Uganda citizens and foreigners
Company registered and incorporated under the companies act, 2012
Valid Prospecting License, Exploration License, or Retention License
Submission of required reports
Executed Form II
Completed Medium-Scale Mining Licence (MML) Application Form
Mine plan (including break-even analysis, production capacity, mineral recovery, environmental rehabilitation, and restoration plans)
Proof of technical competence (CVs and academic qualifications of the technical team)
Written proof of surface rights acquisition (landowner agreements or compensation plan)
Detailed report on mineral resources (proving the economic feasibility of the mining project)
Proposed value addition program (if applicable)
Marketing and sales strategy for the minerals produced
Environmental and social impact assessment (ESIA) in line with the National Environment Act, 2019
Business plan (capital investment forecast, operational costs, revenue projections)
Proof of financial capability to sustain the mining project
Statement on employment and training of Ugandan workers

Statutory Fees (UGX)

New Application / Renewal Fee: UGX 15,000,000
Registration Fee: UGX 1,000,000
Annual Mineral Rent: UGX 120,000 per hectare
Gazette Grant Fee: UGX 345,000

Application Process

Register on the Mining Cadastre & Registry System (MCRS).
Download and complete the MML application form.
Submit the form online with all required supporting documents.
Pay the application fee (UGX 15,000,000).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, pay the licence and mineral rent fees.
Receive your Medium-Scale Mining Licence (MML), valid for 10 years.

Additionally

Mining area must not exceed 50 km².
Requires significant investment in infrastructure and mining equipment.
Mining activities must comply with environmental, health, and safety regulations.
Holders must submit annual mining and environmental compliance reports.

Large-Scale Mining Licence (LML) – Uganda (2024)

Large-Scale Mining License Granted for up to twenty-one (21) years or the life of the ore body, renewable for up to fifteen (15) years.

Purpose

The Large-Scale Mining Licence (LML) is issued to companies intending to conduct large-scale mining operations in Uganda. It allows for the extraction of minerals in areas not exceeding 50 km², requiring a capital investment of at least 388 billion UGX (19,410,000 currency points, where 1 cp = UGX 20,000).

Validity

The LML is valid for up to 21 years.
It can be renewed for 15 years at a time.

Key Requirements

Valid Prospecting License, Exploration License, or Retention License
Proof of payment of taxes and fees due
Certificate of Incorporation and Memorandum of Understanding
Board resolution
Names and Nationalities of the Director and the names of every shareholder who is the beneficial owner of five percent or more of the issued share capital
Company Profile And history of mining operations in Uganda (Where applicable)
Name and qualifications of the person responsible for supervising the proposed programme of mining operations
Submission of required reports
Executed Form II
Proof of financial capability
Community Development Agreement with affected local communities
Detailed feasibility study and assessment conducted by a certified expert or accredited consultant
Detailed report on mineral resources proving economic viability
Mine plan (break-even analysis, production capacity, mineral recovery rates, environmental rehabilitation, and restitution plan for land rights upon expiry or termination)
Proof of technical competence (CVs and academic qualifications of key personnel)
Business plan (capital investment, operating costs, revenue forecasts)
Proof of surface rights acquisition (agreements with landowners or compensation plan)
Environmental and Social Impact Assessment (ESIA) in accordance with the National Environment Act, 2019
Plan for coexistence with local communities and landowners, including proof of consultations and compensation measures
Statement on employment and training of Ugandan workers
Statement on procurement plans for goods and services from Uganda
Proposed marketing and sales strategy for the minerals to be extracted
Details of insurance coverage, including health and worker compensation for employees

Statutory Fees (UGX)

New Application / Renewal Fee: UGX 20,000,000
Registration Fee: UGX 1,000,000
Annual Mineral Rent: UGX 150,000 per hectare
Gazette Grant Fee: UGX 345,000

5. Application Process

Register on the Mining Cadastre & Registry System (MCRS).
Download and complete the LML application form.
Submit the form online with all required supporting documents.
Pay the application fee (UGX 20,000,000).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, pay the licence and mineral rent fees.
Receive your Large-Scale Mining Licence (LML), valid for 21 years.

Additionally

Mining area must not exceed 50 km².
LML requires significant infrastructure and machinery investment.
Mining operations must follow strict environmental, safety, and community engagement laws.
Annual environmental and mining compliance reports must be submitted.
Holders must create employment opportunities for Ugandan citizens and promote local procurement of goods/services.

Mineral Processing Licence (MPL) – Uganda (2024)

Purpose

The Mineral Processing Licence (MPL) is issued to individuals or companies that intend to process raw minerals through methods such as crushing, grinding, leaching, and separation to increase the mineral concentration before sale or export.

Validity

The MPL is valid for up to 5 years.
It can be renewed for 3 years at a time.

Key Requirements

Completed Mineral Processing Licence (MPL) Application Form
Plan and layout of the mineral processing facility
Proof of appropriate technology for processing minerals
Proof of technical competence (CVs and academic documents)
Statement of the applicant’s knowledge and experience in mineral processing
Environmental and waste management plans in accordance with the National Environment Act, 2019
Written proof of surface rights (land acquisition, compensation, relocation, and resettlement plan if applicable)
Tax clearance from the Uganda Revenue Authority (URA)

Statutory Fees (UGX)

Application Fee: UGX 500,000
Registration Fee: UGX 1,000,000
Licence Fee: UGX 5,000,000
Annual Mineral Rent: UGX 1,000,000
Renewal Application Fee: UGX 500,000
Gazette Grant Fee: UGX 345,000

Application Process

Register on the Mining Cadastre & Registry System (MCRS).
Download and complete the MPL application form.
Submit the form online with all required supporting documents.
Pay the application fee (UGX 500,000).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, pay the licence and mineral rent fees.
Receive your Mineral Processing Licence (MPL), valid for 5 years.

Additionally

MPL is required for processing minerals but does not cover mining operations (a separate mining licence is needed).
All processing facilities must comply with environmental and waste management laws.
Processing plants must have adequate safety and pollution control measures.
Holders must submit periodic reports on mineral processing activities and environmental compliance.

Mineral Smelting Licence (MSL) – Uganda (2024)

Purpose

The Mineral Smelting Licence (MSL) is issued to individuals or companies that intend to extract metals from their ores using smelting technology, which involves heating and melting to separate valuable metals from waste material.

Validity

The MSL is valid for up to 15 years.
It can be renewed for 10 years at a time.

Key Requirements

Completed Mineral Smelting Licence (MSL) Application Form
Plan and layout of the smelting facility
Proof of appropriate smelting technology
Proof of technical competence (CVs and academic documents)
Statement of the applicant’s knowledge and experience in mineral smelting
Environmental and waste management plans in compliance with the National Environment Act, 2019
Written proof of surface rights (including compensation, relocation, and resettlement plan, where applicable)
Tax clearance from the Uganda Revenue Authority (URA)

4. Statutory Fees (UGX)

Application Fee: UGX 500,000
Registration Fee: UGX 1,000,000
Licence Fee: UGX 10,000,000
Annual Mineral Rent: UGX 5,000,000
Renewal Application Fee: UGX 1,000,000
Gazette Grant Fee: UGX 345,000

Application Process

Register on the Mining Cadastre & Registry System (MCRS).
Download and complete the MSL application form.
Submit the form online with all required supporting documents.
Pay the application fee (UGX 500,000).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, pay the licence and mineral rent fees.
Receive your Mineral Smelting Licence (MSL), valid for 15 years.

Additionally

MSL is required for smelting but does not cover mining operations (a separate mining licence is needed).
Smelting facilities must comply with strict environmental and pollution control regulations.
Holders must submit periodic reports on smelting activities, environmental impact, and safety compliance.
The licence can be renewed for an additional 10 years upon satisfactory compliance with regulations.

Mineral Refining Licence (MRL) – Uganda (2024)

Purpose

The Mineral Refining Licence (MRL) is issued to individuals or companies that intend to purify minerals or process mineral products to obtain refined metals or mineral compounds. This includes operations such as gold refining, copper refining, and other metallurgical processes that remove impurities and increase the mineral’s purity and market value.

Validity

The MRL is valid for up to 15 years.
It can be renewed for 10 years at a time.

Key Requirements

Completed Mineral Refining Licence (MRL) Application Form
Plan and layout of the refining facility
Proof of appropriate refining technology
Proof of technical competence (CVs and academic documents)
Statement of the applicant’s knowledge and experience in mineral refining
Environmental and waste management plans in compliance with the National Environment Act, 2019
Written proof of surface rights (including compensation, relocation, and resettlement plan, if applicable)
Tax clearance from the Uganda Revenue Authority (URA)

4. Statutory Fees (UGX)

Application Fee: UGX 1,000,000
Registration Fee: UGX 1,000,000
Licence Fee: UGX 10,000,000
Annual Mineral Rent: UGX 10,000,000
Renewal Application Fee: UGX 1,500,000
Gazette Grant Fee: UGX 345,000

5. Application Process

Register on the Mining Cadastre & Registry System (MCRS).
Download and complete the MRL application form.
Submit the form online with all required supporting documents.
Pay the application fee (UGX 1,000,000).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, pay the licence and mineral rent fees.
Receive your Mineral Refining Licence (MRL), valid for 15 years.

Additionally

MRL is required for refining but does not cover mining or smelting operations (separate licences are needed).
Refining facilities must comply with strict environmental and pollution control
Holders must submit periodic reports on refining activities, environmental impact, and safety compliance.
The licence can be renewed for an additional 10 years upon satisfactory compliance with regulations.

Export & Import Permits for Minerals – Uganda (2024)

Uganda regulates mineral trade through export and import permits, ensuring compliance with mineral laws, tax regulations, and environmental standards. These permits are issued per consignment and are required for anyone transporting minerals in or out of Uganda.

EXPORT PERMIT

Purpose: Authorizes the export of minerals from Uganda.
Validity: Issued per consignment (valid only for the shipment covered).

Requirements for Export Permit

Valid Mineral Dealers Licence (MDL) or Mineral Right
Completed Form 52 (as per the Mining and Minerals (Licensing) Regulations, 2023)
Export permit or related documents from the country of origin (if minerals are not from Uganda)
Proof of payment of royalty fees (for minerals where applicable)
Declaration of mineral type, quantity, value, and country of destination

Statutory Fees (UGX) for Export Permit

Licence Fee: UGX 700,000 per consignment

Application Process for Export Permit

Register on the Mining Cadastre & Registry System (MCRS).
Fill out and submit Form 52 online with all required supporting documents.
Pay the export permit fee (UGX 700,000 per consignment).
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, receive the Export Permit.
Proceed with customs clearance and shipping.

IMPORT PERMIT

Purpose: Authorizes the import of minerals into Uganda.
Validity: Issued per consignment (valid only for the shipment covered).

Requirements for Import Permit

Valid Mineral Dealers Licence (MDL) for the specific minerals being imported
Completed Form 54 (as per the Mining and Minerals (Licensing) Regulations, 2023)
Export permit from the originating country
Pre-shipment documents (certificate of origin, invoice, packing list, etc.)

Statutory Fees (UGX) for Import Permit

Application Fee: UGX 1,000,000 per consignment

Permit Fees:

1% of the prevailing price on the London Metal Exchange (LME) for precious metals, precious stones, and base metals.
- UGX 4,000 per tonne for industrial minerals.
- UGX 2,000 per tonne for clinker or semi-processed industrial minerals.

Application Process for Import Permit

Register on the Mining Cadastre & Registry System (MCRS).
Fill out and submit Form 54 online with all required supporting documents.
Pay the import permit application fee (UGX 1,000,000) and any applicable permit fees.
MEMD (Ministry of Energy & Mineral Development) reviews the application.
If approved, receive the Import Permit.
Proceed with customs clearance and transportation of minerals into Uganda.

Additionally

Permits are issued per consignment – a new application is required for each shipment.
Failure to obtain a permit before exporting or importing minerals is illegal and can lead to penalties or confiscation.
Royalties must be paid before export, where applicable.
Both permits require a valid Mineral Dealers Licence (MDL) or a relevant mineral right.

Opinions

Before You Write Off Uganda, Ask What You Have Contributed

Singapore’s transformation offers lessons in leadership, policy, and institutional reform. Rather than simply admiring successful countries, Ugandans should study their journeys and identify what can work at home.

Published

2 weeks ago

October 18, 2026

Mark Okot

They say travelling is one of the few things you will never regret spending money on. But why do some of us travel? Why do I travel?

I travel to learn, to experience, and to see what the world has to offer in terms of economic progress, infrastructure, governance, and development. I travel to benchmark. We study what has worked elsewhere, identify the lessons worth learning, and explore how to adapt them to our own circumstances and the needs of our people.

It is our responsibility to contribute to the development of our country.

And then there are people like Dj City Gal, in an engagement with renowned Ugandan rapper Big Tril. Watch here: Everything she said may be true, but what was the purpose of this? Beyond pointing out what is wrong, what has she done that can be counted as a contribution to Uganda’s development?

She referenced Singapore. But does she understand where Singapore came from and what it took to become the country it is today?

Does she know the circumstances surrounding Singapore’s separation from Malaysia in 1965? Does she understand the challenges Lee Kuan Yew and his government faced, the policies they pursued, and the difficult decisions and institutional reforms that helped transform Singapore?

China has also studied and drawn lessons from Singapore’s economic development experience. But who did Singapore itself learn from? What countries, systems, and ideas influenced the people who built the Singapore we admire today?

These are the questions people with a development mindset ask. We do not simply admire successful countries; we investigate their journeys. We look at the people who inspired them, the systems they adopted, the mistakes they made, and the lessons we can apply to our own circumstances.

Uganda will still be here long after we are gone. The question is: What will your contribution have been?

It is perfectly fine to criticise individual Ugandans. You can love them, dislike them, agree with them, or disagree with them. But do not confuse the actions of particular individuals or those in positions of responsibility with the entire country.

Uganda is not one person. It is all of us.

Lumping an entire nation together in criticism because of the actions of a few is neither fair nor constructive. Direct your criticism at the people responsible, the decisions they make, and the systems that enable them. Do not make every Ugandan a defendant in a case they had no part in creating.

Finally, development begins at home. To everyone in that video, I have a few questions. What meaningful development have you contributed to your home? What have you done for your neighbourhood? Your village? Your parish? Your district? Your region? And beyond all that, what have you contributed to Uganda as a whole?

These questions are not meant to suggest that individual effort alone can solve every national problem. Government has a responsibility to provide leadership, build infrastructure, deliver public services, and create an environment in which citizens can thrive. Holding leaders accountable is necessary. But so is recognising that we, as citizens, also have a role to play.

Before writing off an entire country, consider what you can do to make your own corner of it better. Nobody has stopped you from contributing to the development of your home, your community, or your country.

And if you genuinely believe that your future lies elsewhere, you are free to seek opportunities beyond Uganda’s borders. But leaving should not be confused with contributing, just as staying should not automatically be mistaken for patriotism.

The real question is not simply what Uganda has failed to do for you, but also what you are doing, within your means and responsibilities, to make Uganda better.

Business

Standard Chartered Uganda Retail Banking Migration to Absa Set for November 2026

Standard Chartered Uganda’s retail banking migration to Absa is set for November 2026. Here’s what customers need to know about account transfers, digital banking registration, debit cards, recurring payments, and customer support.

Published

3 weeks ago

October 16, 2026

lumologroup

Standard Chartered Bank Uganda’s Wealth and Retail Banking (WRB) business is scheduled to migrate to Absa Bank Uganda on November 13, 2026. Customers can access their Absa accounts, services, and digital banking channels starting November 16, 2026.

In separate communications to customers, both banks outlined the transition timelines and arrangements, which will involve transferring customers’ existing banking relationships to Absa.

On October 13, 2026, Standard Chartered confirmed that the migration would be completed on November 13. The bank assured customers that their existing account terms and conditions, banking facilities, and services would remain unchanged until the migration is fully completed.

Absa Bank Uganda has indicated that final migration and integration activities will occur over the weekend of November 13-15, 2026. Access to Absa accounts and banking channels will commence on November 16.

Absa has assured customers that their current banking arrangements will remain unchanged after the transfer. This includes current and savings accounts, term deposits, loans, insurance policies, wealth products, and other banking facilities such as overdrafts.

The bank has confirmed that existing loan terms and repayment arrangements, as well as the terms, conditions, and benefits associated with other banking products, will remain the same.

As part of the transition, customers will receive separate communications containing their new Absa account details. These details may be required when registering for Absa digital banking services.

Customers will need to set up their digital banking profiles using the Absa Uganda mobile application after receiving confirmation that digital access has been enabled.

The registration process involves downloading the official Absa Uganda app, selecting the “Standard Chartered Customer” option, and providing the required identification details, date of birth, and new Absa account number. Customers will then complete facial verification, create a new password, and register their primary device before setting up a four-digit passcode.

Customers’ existing Standard Chartered usernames will remain unchanged; however, they will need their new passwords and passcodes to access their profiles from November 16, 2026, onwards.

Absa has also confirmed that debit cards are currently being processed, and customers will receive further information on delivery arrangements through the bank’s approved service providers. Existing cheque books will be replaced and delivered alongside the new debit cards, with collection available from the Standard Chartered Bank Speke Road Branch as an alternative.

Customers are encouraged to monitor official SMS and email communications from Absa to obtain their new account details. Once received, these details should be shared with employers, service providers, and other organizations that make payments to or collect payments from their accounts.

Customers should also review standing orders, direct debits, subscriptions, and other recurring payment arrangements linked to their accounts, following Absa’s instructions for any necessary updates.

To prepare for digital banking registration, customers should download the official Absa Uganda mobile application when instructed and have their National Identification Number (NIN) or passport number (for non-Ugandan nationals), date of birth, and new Absa account number ready. Registration should only be completed once the bank confirms that digital access is enabled.

Customers are also advised to monitor official communications regarding the delivery or collection of their new debit cards and replacement cheque books. With final integration activities scheduled for November 13-15, customers should plan accordingly and follow official instructions from both banks regarding changes to their accounts and services. Until the migration is complete, they should continue using the existing banking channels of Standard Chartered.

Until the migration is complete, Standard Chartered customers may continue to access banking services through the bank’s existing branches, ATMs, contact centers, and Relationship Managers.

For assistance before the migration, customers can reach Standard Chartered at ug.service@sc.com or through its 24-hour helplines at +256 313 294 100 and +256 200 524 100.

After the transition, customers can contact Absa through the relevant customer support channels. Personal banking customers can email Absa.Uganda@absa.africa, Prestige customers can reach out at PrestigeBanking.Uganda@absa.africa, Premier customers can contact PremierBanking.Uganda@absa.africa, and SME customers can use BusinessBanking.Uganda@absa.africa.

Customers can also call Absa’s toll-free line at 0800 222 333 or use +256 312 218 348 for assistance.

Agriculture

A restriction on smallholder maize would trade food security for a cash-crop bet Uganda has already lost once

A restriction on smallholder maize is not intensification. It is prohibition.Most Ugandan farms are already under four acres. A legal line at that size covers the people who grow the staple, not a fringe of inefficient plots.

Published

1 month ago

September 22, 2026

lumologroup

Under Four Acres, Off Maize

Prime Minister Robinah Nabbanja states that President Museveni has directed her to draft legislation that would prohibit farmers with less than four acres from growing maize, sugarcane, tobacco, and cotton. Instead, smallholders would be encouraged to focus on coffee, poultry, piggery, dairy, and fruit cultivation, which are considered high-value crops at the core of the Four-Acre Model. The aim of this policy is to maximize returns from limited land. However, there is a concern that such a restriction may reduce the cultivation of maize, which is a staple crop for many farming households, especially during times of drought, rising food prices, and increasing regional demand for grain. This is not merely a debate about agricultural intensification; it centers on the issue of prohibition.

Maize is already recognized as the main temporary crop in Uganda. According to the Uganda Bureau of Statistics (UBOS) 2019 Agricultural Survey; the last comprehensive survey detailing crop production to maize was the most cultivated temporary crop, grown by 69 percent of agricultural households. In that season, Uganda produced 2.8 million metric tonnes of maize, a decrease from 3.4 million tonnes in 2018. The regions leading in production included Buganda North with 710,000 tonnes, followed by Bunyoro at 561,000, and Buganda South at 266,000. Of the total harvested, 63.4 percent was sold raw while 27.4 percent was retained for household consumption. Over the past decade, households have increasingly shifted towards growing cassava, maize, and bananas while moving away from millet and beans. Maize is not a secondary crop; it is a core staple for many households and a primary source of income.

It is estimated that around 90 percent of Uganda’s maize is produced by smallholders, a figure often cited in agricultural research and value-chain reports, including those from Wageningen University and CIMMYT-related maize studies. However, this figure is not published by UBOS itself. While UBOS does report who grows maize, how much is produced, and its uses, it does not break down national production into smallholder versus estate contributions. Research literature that uses the 90 percent figure typically characterizes production as being led by households cultivating less than two hectares, growing maize primarily for food and income. Some reports mention millions of households growing maize, with varying cultivation rates depending on the survey and year. What remains consistent is the structure of production: commercial estates are in the minority, and small farms make up the majority.

A ban on maize cultivation for smallholders would not be a minor adjustment. The average Ugandan farm size is already around 1.2 to 1.5 hectares, with many households farming less than one hectare. Reports from Kilimo Trust and other value-chain work indicate that maize plots are commonly under two hectares. Therefore, a legal limit of four acres would encompass most of those who currently grow maize.

The Four-Acre Model allocates one acre for food crops, but enacting a law that prohibits maize cultivation on smaller plots contradicts this framework. While coffee, fruit, and livestock can provide cash income, they do not replace staple foods like posho (maize flour), which is essential for household meals, including school lunches and the feed necessary for poultry and pigs. Both UBOS’s figure of 27.4 percent of maize used for household consumption and research estimates suggesting even higher figures highlight that a significant portion of the harvested maize remains within the household food system.

Maize yields in Uganda are low, presenting an argument for increased investment rather than a ban on cultivation. National average maize yields hover around 2.2 tonnes per hectare; approximately 900 kilograms per acre while well-managed conditions can yield between 6 and 8 tonnes, and sometimes higher in controlled research settings. Subsistence plots typically yield between 700 and 1,000 kilograms per acre, whereas high-input plots can reach 1,800 to 2,200 kilograms. The drop in national production from 3.4 million tonnes to 2.8 million tonnes between 2018 and 2019 already highlighted how sensitive output is to weather and input availability.

The yield gap is well-documented, caused by factors such as the use of recycled and informal seeds, low fertilizer application compared to other African countries, reliance on rain-fed production, pests, and climate-related shocks. Flooding can lead to yield losses of nearly 18 percent, while drought can cause a decline of about 10 percent. Projections indicate further national declines of approximately 10 to 12 percent by 2030 if current seed varieties remain unchanged. In northern districts like Lamwo and Pader, extended dry spells in 2024 disrupted flowering and led to poor harvests, prompting local agricultural officials to advise farmers to diversify their crops, as cereals suffered significant losses. This situation calls for the adoption of drought-resistant seeds, improved water management, and assessment of flood risks, rather than a ban on maize cultivation for the farms that still produce the majority of it.

These facts do not indicate that growing maize is unfeasible on plots smaller than four acres; rather, they reveal that public policy has consistently under-invested in this staple crop. Combining improved seeds with better fertilizer application has been linked to substantial yield gains on existing small plots. Advanced hybrid varieties could potentially double yields under current climatic conditions according to modeling studies. Relying solely on a smaller number of large-scale farms to increase maize production assumes that such units will emerge, remain involved in maize production, and sell at competitive prices in domestic markets. This is more of a hope than a concrete plan.

The story of Uganda’s vanilla market serves as a warning, not a peripheral issue. The country has experienced the consequences of shifting smallholders towards high-value export crops, as was seen in Madagascar in the late 1990s.