Tax challenges had previously obstructed the Ugandan gold trade, an industry crucial for generating 44% of Uganda’s export revenue, as reported by the Bank of Uganda.
The gold trade encountered a nearly year-long interruption due to a tax dispute, which was subsequently resolved.
In May 2023, the Ugandan Parliamentary Committee on Finance, Planning, and Economic Development disclosed that Uganda had missed out on Ush600 billion ($160.77 million) in uncollected taxes from gold exports since July 2021, owing to disagreements with exporters and refiners over tax assessments.
Responding to these assertions, Ruth Nankabirwa, Uganda’s Minister for Energy and Mineral Development, attributed the revenue loss to a standoff between the Uganda Revenue Authority and over 20 gold exporters and refiners.
However, recent reports published in The Monitor, a Ugandan newspaper, indicate a remarkable resurgence in the gold trade, with the country averaging $228.4 million in monthly earnings over the twelve months leading to February.
During this period, gold exports contributed 37% to total export revenue, amounting to $2.7 billion, representing approximately one-third of Uganda’s overall export income of $7.4 billion.
These figures suggest that around 45,988 kilograms of gold were traded during the fiscal year, averaging 3,538 kilograms monthly, with the bulk of the precious metal exported to the Middle East, notably the United Arab Emirates, accounting for approximately 98% of the transactions.