Uganda’s mineral industry has experienced a remarkable expansion in recent years, with gold exports soaring and new mining sites emerging across the country. This growth has created employment opportunities for thousands. However, reports highlight a darker side to this boom, revealing how the mineral sector is entangled in corruption, conflict, human rights violations, and environmental degradation.
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1 Exports and Imports of Uganda’s Gold
Uganda’s gold exports skyrocketed over tenfold in 2023, reaching $2.3 billion. Despite U.S. sanctions on major gold processor African Gold Refinery and its owner. Authorities accused the Belgian businessman Alain Goetz of smuggling gold from the Democratic Republic of Congo (DRC). The surge was largely attributed to new processing capacity, particularly from the Chinese-run Wagagai Mining Ltd in eastern Uganda, as well as a suspension of tariffs on gold exports. While Uganda continues to establish itself as a major regional gold hub, concerns persist over its role in laundering illicit gold, especially from conflict-affected areas.
Uganda’s gold production reached 3,200 kg in December 2022, marking an increase from 2,900 kg in 2021. Over the years, production has fluctuated, averaging 1,500 kg annually from 1993 to 2022, with notable highs and lows. The country recorded its peak production at 3,400 kg in 2016, while the lowest output was 0 kg in 2009. As of now, this is the most recent available data reported by the U.S. Geological Survey and maintained by the China Economic Information Center (CEIC). It highlights Uganda’s evolving role in the global gold market. Also, categorised under the World Trend Plus Metal and Mining Sector for tracking precious metals production.
Smugglers bring most of the gold into Uganda from abroad, despite its status as the country’s top export. Benefiting political elites and international actors while contributing little to local economic development. Scandals continue, such as the controversial 2019 shipment of Venezuelan gold to the Africa Gold Refinery, which strained Uganda’s relations with the U.S. Today, the core issue remains land rights and exploitation. Particularly in Karamoja, where resource wealth often leads to displacement and conflict rather than prosperity for local communities. [source, source, source]
2 Major Scandals: Smuggling Networks and Key Players
Uganda’s prominence in illicit gold trading has been marred by a series of scandals and exposés, both historical and recent, that illustrate how deeply entrenched the smuggling networks are. These scandals involve high-profile individuals, international smugglers, and even state complicity, underscoring the challenge Uganda faces in cleaning up its gold sector.
2.1 The ‘’Gold Scandal’’ of 1965
Politics, conflict, and corruption have long shaped Uganda’s gold trade, dating back to the 1965 Gold Scandal. Involving Milton Obote (Prime Minister of Uganda 1962-1966), Idi Amin (Army Commander and later dictator of Uganda from 1971-1979), and allegations of illicit deals linked to Congolese rebels. Gold played a pivotal role in shaping Uganda’s militarism. Influencing power struggles and fueling tensions that led to coups and political realignments.
The political fallout was immense: it eroded trust in the government and fed into the tensions that led to Obote’s overthrow a few years later. This episode established a template wherein Ugandan elites exploited regional chaos for personal gain, a pattern that would recur in various forms. Indeed, during the 1970s under Idi Amin’s rule, officials in Uganda plundered gold from Congo, though the military dictatorship kept details opaque.These historical cases show that gold smuggling and high-level corruption have long been intertwined in Uganda’s governance. [source, source]
2.2 “The Golden Laundromat’’ of 2018
An investigative report by The Sentry, “The Golden Laundromat: The Conflict Gold Trade from Eastern Congo to the United States and Europe,” exposes how conflict gold from the Democratic Republic of Congo (DRC) is being laundered through Uganda and entering global supply chains, including 283 U.S. publicly listed companies such as Amazon, Sony, and General Electric. The report highlights a gold smuggling network controlled by Belgian tycoon Alain Goetz, whose African Gold Refinery (AGR) in Uganda allegedly refines illegally sourced gold from conflict zones in the DRC before exporting it to Europe and the U.S. through intermediaries, like Tony Goetz NV, a Belgian refinery operating in Dubai. In 2017, AGR exported $377 million in gold despite Uganda’s own production being significantly lower, confirming suspicions of illicit sourcing.
The report states that gold smuggling funds armed groups in eastern Congo. Also, contributing to ongoing conflict and human rights abuses, with an estimated 4.5 million people displaced. It called for targeted sanctions, anti-money laundering measures, stricter banking regulations, and investigations into AGR, Tony Goetz NV and associated companies. Additionally, it urges stronger airline security measures to prevent gold smuggling. The findings underscore the urgent need for greater oversight in the global gold trade. The conflict over gold continues to fuel violence, corruption, and illicit financial networks while discreetly entering mainstream markets [source, source]
2.3 Gold transfer from Venezuela to Uganda
Another high-profile incident underscored Uganda’s role in circumventing international sanctions. In 2019, Uganda’s AGR was embroiled in controversy after 7.4 tons of gold from Venezuela – a country under U.S. sanctions – were flown into Entebbe in two shipments. The cargo was worth around $300 million. It raised alarms as Venezuela’s embattled regime sought to sell off gold reserves for much-needed cash.
More recently, flights from Caracas to Entebbe have fueled suspicions that Venezuelan President Nicolas Maduro’s government is moving gold to Africa and the Middle East to evade sanctions. Ugandan authorities initially seized 3.6 tons of the gold over suspicion that it violated sanctions or customs laws. However, in a startling turn, Uganda’s Attorney General declared that AGR’s import of the gold was lawful under Ugandan tax exemption rules and ordered the seized bullion returned to the refinery. Police promptly released the gold and withdrew from AGR’s premises, essentially giving the green light to the transaction. It later emerged that, while no Ugandan laws were broken, the U.S. government had pressured Uganda to halt dealings in Venezuelan gold – the Attorney General even directed AGR to refrain from further imports from Venezuela in light of the international sanctions.
This scandal highlighted how Uganda’s lax policies made it a magnet for “blacklisted” gold. Gold from sanctioned countries like Zimbabwe and Sudan has also made its way to Uganda in recent years. Each such episode not only tarnishes Uganda’s image but also exposes it to diplomatic friction. [source, source, source]
2.4 Recent Scandals
In recent times, Uganda’s gold sector has been rocked by repeated fraud and smuggling scandals. Earning the country’s negative headlines in domestic media and watchdog reports, which have described a “relentless wave of gold scandals.” For instance, Kampala has seen numerous fake gold scams targeting foreign investors.
In January 2025, Kazakhstani nationals Baishev Rinad and Jambulov Olzhas accused Ugandan businessmen of defrauding them in a counterfeit gold scam. They were invited to Uganda in March 2023 by a man named Eric. He falsely claimed ties to the Ugandan president. Eric introduced them to Joseph Akandwanaho and Joram Kamukama, alleged gold dealers operating under Sero Minerals Ltd in Kampala. To verify the deal, the investors hired lawyer Raymond Ntende, paying him $14,000. Later, they claimed he was also part of the scheme.
The Kazakhs agreed to purchase 25 kg of gold, paying $113,125 in taxes and fees, and received 3 kg as a deposit. Soon after, they were asked for an additional $40,000, which they also paid. However, the sellers delayed shipment. When the investors demanded a refund, they were threatened and later discovered the gold received was counterfeit. They also alleged that Eurogold testing facility employees swapped real gold for fake alloys. [source, source, source]
3 Gold Flows Between Uganda and DRC Recently
Uganda’s gold trade remains deeply entangled in illicit activities. With military operations and smuggling networks shaping its economic and political landscape. Uganda’s military operates in eastern DRC under the justification of counterterrorism against the Allied Democratic Forces (ADF), but it also works to secure access to gold resources and control key smuggling routes. Analysts argue that gold smuggling fuels regional instability.
The reports indicate that the Ugandan People’s Defence Force (UPDF) has facilitated the illicit movement of gold. As a result, it complicates peacekeeping efforts. Uganda’s gold exports surged to $2.3 billion in 2023. Despite producing only a fraction of that amount domestically, underscoring its role as a hub for laundering gold from the DRC. A 2024 U.N. Panel of Experts report further exposed a Kampala-based firm, Metal Testing and Smelting Company, for orchestrating a sophisticated smuggling scheme. The company pre-financed Congolese smugglers, sent agents to Uganda’s northern border city of Arua, and arranged weekly deliveries of 20 kg of illicit gold.
The company then aggregated the gold and exported it as a Ugandan product. This highlights the adaptability of smuggling networks despite past scandals and international oversight. The persistence of gold laundering—from the 1960s to today—reveals the lucrative and deeply entrenched nature of the trade, often involving powerful figures and international players operating with impunity. [source, source]
4 Conclusion
Uganda’s gold laundering is a complex tale of opportunity and abuse, where the promise of economic gain has been marred by corruption, conflict, and international crime. Historically a minor gold producer, Uganda leveraged regional turmoil to become a major gold exporter. But at the cost of turning into a laundromat for dirty gold. The geopolitical impact of Uganda’s gold trade underscores that this is not just a Ugandan problem. It is deeply woven into the fabric of regional conflicts and global supply chains. The economic and social consequences at home have so far been double-edged: a statistical boom that belies persistent poverty and graft on the ground. As the international response shows, there is a collective will emerging to address this challenge, treating Uganda’s gold laundering as part of a broader fight against conflict minerals and illicit financial flows.
Uganda now stands at a crossroads. It can choose to continue business as usual – courting gold investors at any cost and serving as a transit hub with little oversight – but this risks further entrenching corruption and international isolation. Alternatively, Uganda can robustly implement the reforms it has begun. Embracing transparency and lawful mining, thereby transforming its gold sector into a legitimate engine of development. The coming years will determine whether Uganda sheds its image as Africa’s “gold laundromat”. Instead, it can strike a balance between economic prosperity, ethical sourcing, and peace – turning what is now a troubled tale of laundered gold into a success story of clean gold fueling sustainable growth.
