Uganda’s $5 Billion Gold Trade Puts Wagagai Mine in the Spotlight

Uganda’s gold exports have passed $5 billion, but much of that trade still depends on gold brought in from neighbouring countries for refining and resale abroad. At Wagagai Gold Mine in eastern Uganda, the focus is on increasing the country’s own output. The project has created more than 2,000 jobs for Ugandans and is targeting annual production of about 1.2 tonnes of refined gold, according to Pulse Uganda.

A Chinese investor delegation visited the mine in Busia District on April 17, 2026. Uganda’s ambassador to China, Oliver Wonekha, led the tour of the facility near the Kenyan border. Site officials outlined the project’s progress since its launch and its role in expanding production and attracting investment. The visit put a specific mining project at the centre of a much broader export story.

Building output at home

The mine’s general manager, identified in the report as Lee, said Wagagai was gradually building capacity and was expected to produce around 1.2 tonnes of refined gold a year. That is a production target, rather than a figure for gold already being produced. Lee linked the project’s development to Uganda’s ambition to lift domestic gold output, as the government pushes for a larger mining industry.

Wagagai is expected to produce about 1.2 tonnes of refined gold annually, general manager Lee said, according to Pulse Uganda.

For Ugandan workers, the project’s role extends beyond the gold it aims to supply. More than 700 workers have received technical training, alongside the more than 2,000 jobs already created for Ugandans. Authorities said the training was helping build skills and support local communities. Those employment and training figures show the local stakes in a project being presented as part of the country’s wider mining expansion.

Export strength, a domestic production challenge

Pulse Uganda reported that gold exports earned the country more than $5 billion, or about 18 trillion Ugandan shillings, between late 2024 and 2025. The report did not specify the exact period covered by that total. It said gold had become Uganda’s leading export and accounted for more than three-quarters of export earnings, making it a major source of foreign currency for the economy.

Yet the export total does not tell the same story as domestic mine production. Experts cited by Pulse Uganda said much of Uganda’s gold business still involved refining and re-exporting metal from neighbouring countries. Refining processes gold into a purer product, while re-exporting means selling imported gold abroad. That distinction is central to understanding why a mine such as Wagagai matters alongside the country’s growing gold trade.

Officials described Wagagai as part of the government’s push for value addition—processing minerals before export rather than selling them raw. Uganda already operates several gold refineries, which help supply higher-quality gold to international markets. The policy combines that processing activity with efforts to expand local production and strengthen the country’s mining base.

The next development to watch is Wagagai’s progress towards its annual output target as it builds capacity. The investor visit highlighted interest in the sector; the broader challenge described in the report is to increase Ugandan production within a gold trade still heavily shaped by refining and re-exports.