Uganda’s Gold Exports Surge, Overcoming Tax Disputes

Uganda’s Ministry of Finance recently revealed that gold has reclaimed its position as the country’s primary export. Over the past 12 months leading up to February, the gold trade contributed to 37% of Uganda’s total export revenues.

This resurgence follows a period of disruption caused by tax disputes, which reportedly cost Uganda Ush600 billion ($160.77 million).

Initially, tax issues had significantly hindered Uganda’s gold trade, which accounts for a substantial 44% of the nation’s export income, as reported by the Bank of Uganda. However, after nearly a year of interruption due to the tax dispute, the matter was eventually addressed.

In May 2023, the Ugandan Parliamentary Committee on Finance, Planning, and Economic Development reported a loss of Ush600 billion ($160.77 million) in uncollected taxes from gold exports since July 2021.

This loss stemmed from disagreements between the Uganda Revenue Authority and over 20 gold exporters and refiners.

Despite these challenges, recent reports from The Monitor, a Ugandan newspaper, highlight a remarkable rebound in the gold trade.

The country now earns an average of $228.4 million monthly from gold exports, totaling $2.7 billion in the twelve months leading to February.

This figure represents approximately 37% of Uganda’s total export revenue, which amounted to $7.4 billion during the same period.

During this financial year, around 45,988 kilograms of gold were sold, averaging 3,538 kilograms per month. The majority of this precious metal was exported to the Middle East, particularly the United Arab Emirates, which accounted for approximately 98% of Uganda’s gold exports.