Overview:
This follows growing concerns about discrepancies between gold mined in Uganda and that exported mainly to the United Arab Emirates.
Uganda’s Ministry of Energy and Mineral Development (MEMD) has directed that gold trading should be conducted between parties that hold valid licences.
In a statement, the Ministry Permanent Secretary, Eng Irene Batebe, said where minerals are not from Uganda, an export permit or any other related documents issued by the relevant government department is required. One has also to prove payment of royalties from the country of origin.
According to Batebe, an import permit will only be granted per consignment. For exporters, there should be proof that the gold has been refined to purity level of 99.9% and proof of payment of $200 through URA.
This follows growing concerns about discrepancies between gold mined in Uganda and that exported mainly to the United Arab Emirates.
The new regulations follow consultations with Uganda Revenue Authority’s Customs department and the Directorate of Geological Surveys and Mines (DGSM).
As part of its efforts to fight the smuggling of gold from the Great Lakes, Uganda attained the Regional Certification Mechanism in May 2024. It is a compulsory regional standard for certification of the 3Ts (tin, tantalum, tungsten) and gold sourced from or transiting across an ICGLR Member State.
Uganda was the 5th country among the 12 to attain the certificate after ratifying the protocol on the fight against illegal exploitation of natural resources in the region. It followed DRC, Rwanda, Burundi, and Tanzania.
The ICGLR is part of the implementation of the pact on security, stability, and development as enshrined in the Great Lakes Region Act 11 of 2018 to prevent illegal exploitation of and illicit trade of designated minerals.
Reports have indicated that at its most basic level, the smuggling of Artisan Mined deprives governments of the region of tax revenue – up to $22 million per year – desperately needed for development.
Regional and international reports have recently indicated that Uganda has not been strict in enforcing the International Conference on the Great Lakes Region (ICGLR) rules against illicit gold from DRC and other neighboring countries. Illicitly traded gold has been blamed for some of the worst conflicts in the Great Lakes region.
Figures show that Uganda exported gold worth more than $2 billion in 2022. In mid-August 2022, the Central Bank of Uganda will start purchasing locally-produced gold.