Uganda's gold exports jumped to $3.95 billion in the first half of the 2025/26 financial year, nearly two and a half times higher than the $1.76 billion recorded in the same period of 2024/25, according to the Ministry of Finance's half-year macroeconomic and fiscal performance report. However, net gold earnings stood at only around $495 million because a large portion of exported gold is imported into Uganda, refined there and then shipped out again. The gap between gross and net figures has raised fresh questions about how much revenue and economic benefit the country actually captures from its booming gold trade.
Extractives sector analyst James Opito highlighted a structural issue with Uganda's current taxation approach. The Uganda Revenue Authority charges a fixed export levy of $200 per kilogramme on processed gold, rather than a percentage-based royalty that would rise alongside international gold prices. Opito argued that a percentage-based system, such as a 5% royalty, would allow government revenue to grow in line with higher commodity prices and larger export volumes. He acknowledged that fixed charges offer advantages in simplicity and clarity for distributing revenue among central government, local councils and landowners, but questioned whether Uganda's framework captures a fair share of value from rising international prices and export earnings.
The gold sector includes locally mined supplies alongside material sourced from neighbouring countries such as the Democratic Republic of Congo and South Sudan, which are processed and re-exported through Uganda. This means the value of gold moving through Uganda does not necessarily reflect domestic production. Kenneth Asiimwe, chief executive officer of the Uganda Association of Artisanal and Small-scale Miners, pushed back against suggestions that small-scale miners lack sophistication in assessing their product's value. He argued that artisanal miners understand market prices and can seek competitive buyers, though their actual returns are affected by production costs, access to financing and processing facilities, and the availability of purchasers. Asiimwe also challenged the cost burden of mineral traceability systems, arguing that miners already incur substantial expenses and that regulators should finance tracking mechanisms rather than placing the costs on extractors.
Uganda is also developing large-scale domestic production capacity. The Wagagai Gold Project in Busia District, commissioned in August 2025, is designed to process up to 5,000 tonnes of ore daily and produce approximately 1.2 tonnes of refined gold annually. Such projects illustrate the potential for local processing to create employment and strengthen supply chains, though processing capacity alone does not determine actual output or the tax revenue ultimately retained in the country.
The discussion underscored the need for clearer and more transparent data on domestic gold production, import volumes, export earnings, government tax receipts and how earnings distribute across the supply chain. With gold emerging as Uganda's leading export commodity, the central question remains whether the expanding trade can generate stronger public revenue, greater participation by local businesses and measurable improvements in miners' livelihoods and their communities.
For savers and businesses in Uganda, the uncertainty over how much revenue the state collects and retains from gold exports affects government spending capacity, exchange rate stability and the competitiveness of the mining sector.