UGANDA LAUNCHES $250M GOLD MINE TO BOOST EXPORTS AND POWER ECONOMIC TRANSFORMATION

Uganda opens $250m gold mine to drive exports and economic growth.

Uganda Economic growth Export Gold mine Investment Industrial development Africa.
Ugandan President Yoweri Museveni commissioning the Wagagai gold mining project in Busia District.
Ugandan President Yoweri Museveni commissioning the Wagagai gold mining project in Busia District.


Uganda has taken a decisive step to reposition itself as a key player in Africa’s mining industry with the inauguration of its first-ever large-scale gold mine, a $250 million investment expected to redefine the country’s export profile and industrial development.

The Wagagai Gold Mining Project, situated in Busia district and covering more than nine square kilometres, officially began operations on Saturday under the ownership of Chinese firm Wagagai Mining (U) Limited. Equipped with a refinery capable of achieving 99.9% purity, the plant is designed to process 5,000 tons of gold ore daily and produce 1.2 metric tons of refined gold annually, an unprecedented leap compared to Uganda’s domestic output of only 0.0042 tons in 2023.

President Yoweri Museveni, who inaugurated the project, described it as a turning point in the country’s mineral sector strategy. “To wake up in the minerals sector, we must have full value addition for all minerals like gold, lithium, tin, among others,” he said, emphasizing the government’s commitment to channel mining revenues into infrastructure development, including power generation and railway expansion.

Gold has already become Uganda’s top foreign exchange earner, accounting for $3.4 billion in export revenue last year, about 37% of total exports. However, most of these earnings came from re-exports and small-scale artisanal miners. With the Wagagai project, Uganda aims to establish itself as a credible gold producer in its own right, with ambitions to narrow the gap with Africa’s leading gold exporter, Ghana, which earned $11.6 billion from gold exports in 2023.

Beyond boosting foreign exchange reserves, the new mine is expected to create jobs, foster technology transfer, and accelerate Uganda’s push for industrialisation. The government is also relying on increased mineral revenues to partly finance its €2.7 billion ($3.16 billion) standard-gauge railway project, which will reduce transport costs for exports and imports through Kenya.

For Museveni, the mine represents more than a business venture; it is a symbol of Uganda’s broader strategy to leverage natural resources for sustainable economic transformation.

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