Uganda has launched its first large-scale gold mine in a major step toward positioning itself as a leading gold producer and exporter in Africa. The Wagagai Gold Mining Project, a $250 million Chinese-owned investment in the eastern Busia district, was inaugurated by President Yoweri Museveni on Saturday.
The project, operated by Wagagai Mining (U) Limited, spans just over nine square kilometres and marks a significant shift from Uganda’s reliance on artisanal gold production. The plant has already begun operations, with the capacity to process 5,000 tons of gold ore per day and produce approximately 1.2 metric tons of refined gold annually. This dwarfs Uganda’s official domestic output in 2023, which stood at just 0.0042 tons.
Gold has become a cornerstone of Uganda’s economy in recent years. According to the central bank, the country earned $3.4 billion from gold exports in 2023, accounting for nearly 37% of total export revenue. Much of this revenue, however, came from the re-export of gold sourced elsewhere, rather than local production. The Wagagai project is expected to change that, boosting domestic output and reducing dependence on imports.
Despite this progress, Uganda still trails behind Africa’s largest bullion producer, Ghana, which earned $11.6 billion from gold shipments last year. Museveni emphasized that Uganda’s strategy is not only to increase production but also to enhance value addition by refining gold and other minerals locally.
“In order to wake up in the minerals sector, we must have full value addition for all minerals like gold, lithium, tin among others,” Museveni said in a statement.
The government hopes revenue from gold exports will support infrastructure development, including power generation and transport projects. Currently, Uganda is constructing a €2.7 billion ($3.16 billion) standard gauge railway to cut the cost of transporting imports and exports through neighboring Kenya.
With the Wagagai mine now operational, Uganda is set to transform its mining landscape, positioning itself as a competitive player in the global gold market while channeling mineral wealth into long-term national development.
