Gold trade in Uganda makes a huge comeback

UGANDA’S Ministry of Finance recently disclosed that gold is yet again Uganda’s major export. This assessment is based on data compiled from the last 12 months leading up to February, where the gold trade accounted for 37 percent of all export revenues.

The gold trade in Uganda had been hampered by tax disputes which cost the East African country Ush600 billion (US$160,77 million).

Tax issues had hampered the Ugandan gold trade, an industry said to be raking in 44 percent of Uganda’s export income, at one point, according to the Bank of Uganda.

The gold trade had been interrupted for almost a year, following the tax debacle that was later addressed.

Back in May 2023, it was reported by the Ugandan Parliamentary Committee on Finance, Planning, and Economic Development, that Uganda has lost out on Ush600 billion (US$160,77 million) in uncollected tax from the export of gold goods since July 2021 because of a dispute with exporters and refiners over levies.

In reaction to the claim, Ruth Nankabirwa, Uganda's Minister for Energy and Mineral Development, attributed the loss to a disagreement between the Uganda Revenue Authority and over 20 gold exporters and refiners.

However, a recent report seen in the Ugandan newspaper, The Monitor notes that the gold trade has rebounded dramatically, earning the country an average of US$228,4 million per month, in the twelve months leading to February.

The report also noted that during the period under review, the gold trade accounted for 37 percent of total export revenue at a total of US$2,7 billion, about a third of the total export income of US$7,4 billion.

This figure indicates that around 45,988 kilograms of gold were sold during the financial year, a monthly average of 3,538 kilograms, the majority of which were exported to the Middle East, particularly the United Arab Emirates, which purchased around 98 percent of the precious metal. —Business Insider Africa