UGANDA witnessed a remarkable surge in gold exports in 2023, defying US sanctions imposed on a major processor in the East African nation, according to data released by the Bank of Uganda on Tuesday.
The data revealed that Uganda, emerging as a pivotal gold trading hub in the region, recorded a staggering ten-fold increase in gold exports, soaring to $2.3bn in 2023 from $201 million in the preceding year.
Stephen Turyahikayo, a mining sector researcher in the Great Lakes region, attributed the significant surge to the emergence of new processing facilities, including the Chinese-operated Wagagai Mining plant in eastern Uganda. He stated:
‘The substantial increase was likely a result of the new capacity from that Chinese plant and possibly smaller others.’
Additionally, exporters capitalised on the temporary suspension of tariffs on gold exports last year, contributing to the exponential growth in Uganda’s gold trade, as noted by an official from the Ministry of Energy and Mineral Development, who preferred anonymity due to lack of authorization to speak publicly.
In 2022, the United States imposed sanctions on Belgian businessman Alain Goetz and a network of associated companies, including African Gold Refinery, one of Uganda’s major gold refiners. The US accused Goetz of involvement in the illicit movement of gold from the Democratic Republic of Congo, an allegation vehemently denied by Goetz.
Despite the sanctions, Uganda’s gold industry demonstrated resilience and continued to expand, highlighting its importance in the regional gold trade landscape. The surge in exports underscores Uganda’s growing prominence as a key player in the global gold market amidst geopolitical challenges and regulatory scrutiny.