By Andrew Irumba Katusabe [Sankara]
Busia, Saturday, 16 August 2025 — His Excellency President Yoweri Kaguta Museveni on Saturday formally launched the Wagagai Gold Mining Project in Busia District, marking a breakthrough in Uganda’s aspiration to process minerals domestically and maximize economic benefit.
Jobs, Production, and Revenue
- The Wagagai project is set to generate over 5,000 direct local jobs once fully operational, underpinning a bold shift toward employment-rich value addition.
- The facility aims to produce gold of 99.9% purity, processed entirely within Uganda, for the next two decades.
- It is expected to contribute over USD 100 million annually in revenues over a 21-year operational period.
Speaking on the occasion, Ambassador Zhang Lizhong lauded the milestone initiative, noting the project would create “over 2,000 local jobs directly” and train more than 500 Ugandans in technical skills, delivering an estimated USD 10 million in annual tax revenue.
Economic Role
- The mining and quarrying sector contributed approximately 2.2% to Uganda’s GDP in the financial year 2022–2023
- If artisanal and small-scale mining (ASM)—which employs over 600,000 people, accounts for over 90% of mining output, and supports production valued around USD 850 million annually—were fully accounted for, the sector’s GDP contribution could be even higher
- Historically, mining once comprised up to 30% of Uganda’s exports in the 1950s, although its GDP share dipped to below 0.5% by 2010 before recovering modestly
Notably, Uganda’s gold exports surged in 2023 to USD 2.3 billion, more than a tenfold increase from the previous year. Analysts attribute this sharp rise in part to new processing capacity—including Wagagai—and the removal of export tariffs
President Museveni’s Clarion Call
At the event, President Museveni stressed that no unprocessed minerals should leave Uganda’s frontiers. He warned that exporting raw minerals undermines the economy and urged local miners to partner with initiatives like Wagagai to ensure value addition occurs within the country.
A major highlight was his promise to fully compensate landowners impacted by mining activities:
“All minerals underneath belong to Government … but Government must compensate you for the surface land, grass, trees and water,” President Museveni affirmed, adding: “including Sam’s by the way”—a pointed reassurance to affected locals.
Summary: Why This Matters
| Factor | Impact |
|---|---|
| Job Creation | Over 5,000 local jobs and technical training opportunities |
| Revenue | Projected USD 100 million/year over 21 years |
| Value Addition | 99.9% pure gold processing within Uganda |
| GDP Impact | Energizing a sector contributing ~2.2% to GDP, with major growth potential |
| Strategic Leadership | Clear government policy to stop raw mineral exports and fully compensate land owners |
This commissioning of the Wagagai project signals Uganda’s determined push toward domestically anchored beneficiation of its mineral wealth—boosting industrial growth, generating jobs, and reinforcing the nation’s fiscal and strategic independence.
