Museveni Blocks Raw Mineral Exports, Inaugurates $200m Gold Refinery in Busia
President Yoweri Kaguta Museveni has drawn a firm red line on the export of unprocessed minerals, declaring that Uganda’s natural wealth must fuel domestic industries instead of enriching foreign economies.
The directive came on Saturday during the commissioning of the US$200 million Wagagai Gold Refinery in Buteba Sub-County, Busia District a project the government hails as a game-changer for Uganda’s mining sector.
“We will not export unprocessed minerals, as this undermines our economy,” Museveni told leaders and investors gathered at the launch, stressing that only value-added products will leave Uganda’s borders.
The refinery, among the largest of its kind in East Africa, is expected to refine gold to 99.9% purity, generating an estimated US$100 million annually for the next 21 years and directly employing more than 5,000 people.
Gold Driving Uganda’s Economy
Uganda’s gold industry has become the cornerstone of the export economy. During the 2023/24 financial year, the commodity accounted for 42% of all export receipts. By March 2025, gold had already earned US$3.788 billion out of the nation’s US$11.81 billion (Shs 43 trillion) in total foreign exchange. Within just the first five months of 2025, exports fetched US$1.91 billion.
It is against this backdrop that Museveni argued the time had come to tighten control and channel maximum benefit back home.
“Wagagai aims to achieve 99.9% purity in gold processing locally, benefiting Uganda financially and creating over 5,000 jobs once fully operational. I urge other miners to ensure minerals are processed before export. By maximising our natural resources, gold, lithium, tea, iron, etc., we can create jobs and industrialize Uganda.”
Anchoring Industrialisation
Government officials say the Wagagai project will serve as a cornerstone for Uganda’s industrial base, helping the country position itself as a regional hub for mineral processing. The refinery is part of Museveni’s broader push for value addition, which he has repeatedly described as the only path to sustainable growth.
“By processing here, we keep the wealth, we create employment, and we strengthen our economy,” the President reiterated.
Analysts note that Museveni’s latest directive not only protects Uganda from the pitfalls of raw commodity dependence but also signals a shift toward long-term industrialisation and job creation.
With Wagagai now in place, Uganda is sending a clear message: the era of shipping out raw minerals is over.
