Uganda’s gold exports have surged from $1.26 billion in 2019 to $6.4 billion in 2025, marking a more than fivefold increase in just six years and making gold the country’s largest export commodity.
But beneath that dramatic rise lies a striking reality, after accounting for gold imports, Uganda’s net gain from the trade is only about $200 million.
The contrast shows a deeper structural issue in the country’s export model and explains why the central bank is stepping in.
Speaking at the Stanbic Economic Forum 2026, Prof Augustus Nuwagaba, Deputy Governor of the Bank of Uganda, said gold now dominates Uganda’s export earnings.
Gold generates approximately $6.4 billion annually, compared with $2.4 billion from coffee and about $700 million from cocoa. Remittances from Ugandans working abroad, including in Oman and Jordan, contribute around $1.7 billion, while tourism brings in a similar amount.
The gold paradox
Despite being Uganda’s largest export earner, gold is also its largest import invoice.
Uganda imports significant volumes of raw gold, refines it, and re-exports it. While this boosts gross export figures, it means much of the value does not originate domestically.
When imports are deducted, the trade balance for gold is only about $200 million.
“For those familiar with finance, this highlights a paradox: while gold is the largest export earner, it is also the largest import invoice. Looking at the trade balance for gold alone, the net figure is only about $200 million, which raises questions about the origins of some of this gold,”he said.
In simple terms, the headline export number reflects the total value of gold leaving the country. But the net figure reflects what actually remains in the economy after paying for imported gold.
The gap between $6.4 billion and $200 million raises important questions about origin, traceability and domestic value addition.
Why origin matters
If a country exports far more gold than it produces domestically, it suggests that much of the metal may be sourced from neighbouring states or through regional trading channels before being refined and shipped abroad.
This does not necessarily imply wrongdoing. Uganda has developed refining capacity and positioned itself as a regional gold hub.
However, large discrepancies between domestic production and export volumes increase scrutiny around transparency, supply chains and compliance with international standards.
That is where policy is now shifting.
Central bank intervention
“At the Bank of Uganda, we are taking this seriously. We are ready to implement a gold purchase programme,”Nuwagaba said.
The Bank of Uganda is preparing to launch a gold purchase programme aimed at improving oversight and increasing domestic value capture.
Under the initiative, the central bank will purchase gold in quantities of one kilogram and above from pre-qualified suppliers. It says it has the refinery infrastructure to handle the transactions.
A traceability system will also be introduced to track gold from mining areas such as Glisa, Busia, Kasanda and Karamoja.
The move reflects a broader shift across Africa, where central banks are re-evaluating their relationship with gold amid currency volatility and rising global uncertainty.
Some African monetary authorities are increasing gold holdings as a hedge against external shocks. Others have sold bullion to shore up foreign exchange reserves.
Uganda’s approach shows a more structured attempt to formalise gold flows while strengthening reserve management.
Email Us on editorial@nnafrica.com
