Uganda has launched its first large-scale gold mine, a $250 million Chinese-owned project in Busia District, as the government moves to expand mining revenues and reduce dependence on raw mineral exports.
The Wagagai Gold Mining Project, covering more than nine square kilometres, was inaugurated by President Yoweri Museveni on Saturday.
The facility has already started operations and is expected to process 5,000 tons of ore daily, with projected annual output of 1.2 metric tons of refined bullion.
That compares to just 0.0042 tons of domestic gold production in 2023, almost entirely from artisanal miners.
“Under my leadership, we will not export unprocessed minerals, as this undermines our economy,” Museveni said in a statement on social media X, formerly Twitter.
According to government estimates, the mine will generate more than $100 million annually over the next 21 years. The project is owned by Wagagai Mining (U) Limited, a Chinese firm, and is designed to refine bullion to 99.9% purity, a milestone for Uganda’s mining sector.
Rising gold exports
Gold has become a key source of foreign exchange for the landlocked East African nation.
Uganda earned $3.4 billion from gold exports in 2023, accounting for about 37% of total export revenues, according to central bank data. However, the bulk of that came from re-exports of foreign-sourced gold rather than domestic output.
By comparison, Ghana — Africa’s largest gold producer — shipped $11.6 billion worth of the metal last year, highlighting the gap Uganda is seeking to close. Museveni said he wants to position the country as a competitive producer and exporter while creating jobs and industrial value chains at home.
“Wagagai aims to achieve 99.9% purity in gold processing locally, benefiting Uganda financially and creating over 5,000 jobs once fully operational,” he noted. He also called on other miners to invest in refining and value addition for resources such as lithium, tin and copper.
Infrastructure funding
The president added that revenues from the mine will support key infrastructure projects, including power plants and the €2.7 billion standard gauge railway under construction. The line, which links Uganda to Kenya’s port of Mombasa, is intended to cut the cost of transporting imports and exports.
Uganda’s broader mining strategy is part of Museveni’s push to diversify the economy and boost foreign exchange earnings.
Officials say the inauguration of the Wagagai project signals a turning point for the country’s underdeveloped minerals sector, long dominated by small-scale artisanal miners.
With large-scale production now underway, Uganda is betting that gold can deliver steady revenues, support industrialisation and secure a stronger foothold in Africa’s mineral economy.
