Uganda bets on $250 million Chinese-owned gold mine to drive economic growth
Presiden Museveni said the new facility represents a shift in Uganda’s approach to its vast resources, as exporting unprocessed minerals denies the country significant revenue.
Uganda has unveiled its first large-scale gold mine, a Sh32.4 billion ($250 million) Chinese-owned project in Busia District, marking a major step in the country’s strategy to boost revenues from mineral processing and cut reliance on raw exports.
President Yoweri Museveni, who commissioned the Wagagai Gold Mining Project on Saturday, said the new facility represents a shift in Uganda’s approach to its vast resources, as exporting unprocessed minerals denies the country significant revenue.
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"I commissioned the Wagagai gold mining project in Busia District today, celebrating a significant step towards processing minerals in Uganda. Under my leadership, we will not export unprocessed minerals, as this undermines our economy," Museveni said in a statement on X.
The mine, which has already started operations, will refine bullion to 99.9 per cent purity and process 5,000 tons of ore daily.
Annual output is projected at about 1.2 metric tons of refined gold — a dramatic increase from Uganda’s domestic production of just 0.0042 tons in 2023, mostly from artisanal miners.
Museveni said the project will not only boost production but also create jobs and provide steady incomes.
"Wagagai aims to achieve 99.9 per cent purity in gold processing locally, benefiting Uganda financially and creating over 5,000 jobs once fully operational," he said.
Uganda earned Sh440 billion ($3.4 billion) from gold exports in 2023 — about 37 per cent of its total export revenues — though most of that came from re-exports of foreign gold.
By comparison, Africa’s top producer, Ghana, earned $11.6 billion (Sh1.5 trillion) from gold shipments the same year.
Museveni also urged other mining companies to invest in local processing.
"I urge other miners to ensure minerals are processed before export. By maximising our natural resources — gold, lithium, tin, among others — we can create jobs and industrialise Uganda," he said.
Officials estimate the mine will generate more than Sh12.9 billion ($100 million) annually for the next 21 years.
Museveni added that the revenues will help fund key infrastructure, including power plants and the €2.7 billion (Sh409 billion) standard gauge railway currently under construction to reduce transport costs.
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