Uganda’s Gold Exports Soar Despite US Sanctions, Driven by New Processors
Uganda witnessed a remarkable surge in its gold exports in 2023, surpassing previous records despite facing US sanctions on a major processor in the country, according to data released by the central bank on Tuesday.
Bank of Uganda data revealed that Uganda’s gold exports skyrocketed to $2.3 billion in 2023, a significant increase from $201 million recorded in the preceding 12 months.
The surge in exports is attributed to the emergence of new processing facilities, notably the Chinese-owned Wagagai Mining plant in eastern Uganda, suggested Stephen Turyahikayo, an expert on the mining sector in the Great Lakes region.
“It was likely a result of the new capacity from that Chinese plant and possibly smaller others,” Turyahikayo commented in an interview with Reuters.
Furthermore, exporters capitalized on the temporary suspension of tariffs on gold exports in the previous year, as highlighted by an official from the ministry of energy and mineral development.
The significant rise in Uganda’s gold exports comes despite the imposition of US sanctions in 2022 on Belgian businessman Alain Goetz and his affiliated companies, including African Gold Refinery, one of Uganda’s prominent gold refiners.
The sanctions were imposed following accusations of Goetz’s involvement in the illicit movement of gold from the Democratic Republic of Congo, allegations that Goetz vehemently denied.
