Uganda’s Ministry of Finance recently disclosed that gold trade in Uganda is back at the top becoming Uganda’s major export.
This declaration was based on data compiled from the last 12 months leading up to February when gold trade accounted for 37% of all export revenues.
According to Business Insider, Gold was a big deal in Uganda before accounting for over 44% of Uganda’s export income but tax issues hampered the trade and watered down its effect on the Ugandan economy.
This interruption of the gold trade by tax issues lasted for over a year.
Back in May 2023, the Ugandan Parliamentary Committee on Finance, Planning, and Economic Development reported that Uganda had lost out on about $160.77 million in uncollected tax from the export of gold goods since July 2021 due to a dispute with exporters and refiners over levies.
In response to the claim, Ruth Nankabirwa, Uganda’s Minister for Energy and Mineral Development attributed the loss to a dispute between the Uganda Revenue Authority and over 20 gold exporters and refiners.
However, a Ugandan national newspaper reported that the gold trade has bounced back to the top in Uganda making the country over $228.4 million per month, in the twelve months leading to February.
The report also pointed out that during the period under review, the gold trade accounted for 37% of total export revenue at a total of $2.7 billion about a third of the total export income of $7.4 billion making it the east African country’s largest export at the time.
What to Know
- The revenue figures stated above indicate that around 45,988 kilograms of gold were sold during the financial year, a monthly average of 3,538 kilograms.
- The major importers of Uganda’s gold are countries in the Middle East, particularly the United Arab Emirates which imported about 98% of Uganda’s gold.
- Besides the Gold Trade, Tourism is also a big revenue earner for the Ugandan economy.
