dfcu pushes for mining risk pool to attract capital

dfcu Bank proposed establishing a dedicated mining risk pool to help financial institutions confidently finance mineral projects.

Press Release – Kampala, Uganda; 30 September 2026: dfcu Bank has called for the establishment of a dedicated mining risk-sharing mechanism to unlock financing for Uganda’s growing minerals sector, arguing that stronger risk mitigation structures are essential to attract capital and support the industry’s long-term growth.

The proposal was made by Moses Malinga, dfcu’s Sector Head, Infrastructure and Energy, during a panel discussion on “De-risking the Mine” at the 15th Annual Mineral Wealth Conference and Expo held at Speke Resort Munyonyo.

Malinga said a mining risk pool would enable insurers, banks and other industry stakeholders to collectively absorb and manage sector-specific risks, improving the ability of financial institutions to support projects from exploration through to production.

Drawing lessons from Uganda’s oil and gas industry, he said the mining sector could benefit from a similar consortium approach, allowing multiple players to share exposure while expanding access to financing.

“Mining projects carry different risks at every stage of development, from exploration to production. Financial institutions must understand and appropriately mitigate these risks before deploying capital,” Malinga said.

He noted that insurance should not be viewed solely as protection for lenders, but as a shared safeguard that supports both financiers and project developers while strengthening confidence across the investment ecosystem.

Malinga also called for greater investment in Uganda’s reinsurance capacity, arguing that stronger local balance sheets would enable domestic insurers to retain more risk while reducing reliance on foreign markets for ordinary exposures.

As Uganda’s mining sector continues to attract increasing interest from investors, he said access to finance remains one of the key factors that will determine the pace at which opportunities are converted into commercially viable projects.

He added that dfcu supports the sector through a value-chain approach that includes asset financing, performance guarantees, transactional banking and payment solutions tailored to mining enterprises.

The conference, held under the theme “Beneath the Surface: Unlocking Africa’s Next Mining Powerhouse,” brought together 1,112 delegates from 30 countries, including government officials, mining companies, financiers, insurers, investors, development partners and technical experts to discuss the future of Uganda’s mineral sector.

Addressing delegates, State Minister for Minerals Phiona Nyamutoro said Uganda must increase the mining sector’s contribution to the economy if the country is to meet its development ambitions.

“The sector currently contributes about 2.2% of GDP, yet our National Development Plan IV targets 7.9% by 2029. This is a significant gap that we must work together to close,” Nyamutoro said.

She noted that discussions at the conference had generated practical recommendations around licensing, financing, artisanal mining, value addition, geological data and skills development, all of which will be critical to accelerating sector growth.

Uganda National Mining Company Chairperson Maria Kiwanuka emphasized the importance of clarity around Government participation in mining projects, particularly regarding capital commitments, shareholder rights, regulatory approvals and the impact of State participation on project financing.

She said predictable frameworks would give investors greater certainty when assessing project viability and making long-term investment decisions, while ensuring Uganda’s national interests remain protected.

Kiwanuka also highlighted the need to retain greater value from the country’s mineral resources through local processing, refining and downstream industrial development rather than continued reliance on exports of unprocessed minerals.