Uganda’s gold exporters have decried the current export halt which they say poses a setback to the gold industry.
This follows the implementation of an order by the Uganda Revenue Authority (URA) to temporarily suspend gold exportation.
The move has resulted in widespread frustration among exporters and left gold refineries in a state of uncertainty, with a growing stockpile of gold awaiting refining and re-exportation.
For the past five days, the exporters said they have been unable to export gold, resulting in financial losses and logistical complications for the affected businesses.
On the other hand, Rwanda has seized this opportunity to bolster its gold industry following an agreement signed with the President of Guinea, directing all gold from Guinea to be refined in Kigali, Rwanda.
Kumran Singh, Chairperson of the Aurum Tradewinds Refineries Association, says the diversion of potential clients who had planned to bring their gold to Uganda for refining, further exacerbates the challenges faced by Ugandan gold exporters.
Singh claims that the URA has authorized a leading exporter of gold in Uganda to use a transshipment customs procedure, allowing them to export more than 30% of gold without undergoing the necessary processing.
Stakeholders are urgently calling for dialogue and action to address the issues surrounding the closure and to protect and promote the local gold refining business.
In 2023, the Minister of Energy and Mineral Development brought the issue of the gold export levy to the attention of Parliament.
The Attorney General advised the Minister to revoke the illegal Mining & Minerals (Export Levy on Refined Gold) Regulations, 2023, which introduced the illegal export levy.
Subsequently, the Minister of Energy and Mineral Development, Ruth Nankabirwa, advised the URA to halt the implementation of the regulations and cease the collection of the illegal export levy.
However, the authority has disregarded the government’s position and continues to demand the unlawful export levy from gold refineries.