Uganda Launches First Large-Scale Gold Mine to Boost Mining Sector and Exports

Edited By: Fatomatou konè

Uganda inaugurated its first large-scale gold mine, a $250 million Chinese-owned project in the eastern Busia district, signaling the country’s ambition to expand its mining sector and become a significant gold producer and exporter. The Wagagai Gold Mining Project, operated by Wagagai Mining (U) Limited and covering just over nine square kilometres, will also refine the bullion to 99.9% purity. The plant, which has begun operations, is expected to process 5,000 tons of gold ore per day and produce approximately 1.2 metric tons of refined gold annually, a substantial increase compared with Uganda’s total domestic production of 0.0042 tons in 2023.

The central bank of Uganda reported that gold exports generated $3.4 billion last year, representing around 37% of the country’s total export revenue. Most of this revenue previously came from small-scale artisanal miners and included re-exports of gold brought into the country. While Uganda’s gold earnings have risen in recent years, they remain significantly below Africa’s leading bullion producer, Ghana, which earned $11.6 billion from gold exports in 2024. President Yoweri Museveni emphasized the importance of full value addition for minerals such as gold, lithium, and tin to strengthen the sector and support broader economic development.

The government of Uganda plans to use revenue from gold exports to invest in strategic infrastructure, including power stations and the ongoing construction of a €2.7 billion ($3.16 billion) standard gauge railway. This railway aims to reduce transportation costs for imports and exports via neighbouring Kenya, enhancing the country’s trade competitiveness. By integrating large-scale mining operations with infrastructure development, Uganda seeks to leverage its mineral resources to accelerate economic growth while establishing a more diversified and sustainable export base.