Gold Can Power Uganda’s 'Economic Qualitative Leap,' Expert Says — But Only With Strong Reforms
Gold Can Power Uganda’s 'Economic Qualitative Leap,' Expert Says — But Only With Strong Reforms
Uganda’s surging gold exports are strengthening the shilling, helping the country record its first trade surplus, and making the currency one of the most stable in Africa, Dr. Peter Babyenda told Sputnik Africa.
He said the boom is linked to new laws that formalized gold mining, reduced informal trade, and improved record-keeping, as well as growing value addition through local refineries that now attract gold from across the region.
Babyenda warned that the gains must be managed carefully. He stressed the need to ensure rising revenues are properly taxed and called on revenue authorities and regional bodies to curb informality and evasion.
He also highlighted the role of the central bank in buying domestic gold, building reserves, stabilizing the exchange rate, repaying external debt, and developing gold-backed instruments.
On regulation, he called for:
🟠stronger licensing and oversight
🟠international accreditation of refineries
🟠full traceability to avoid sanctions and illicit trade
To make the boom sustainable, Babyenda urged Uganda to adopt clear fiscal rules, plan for price volatility, and reinvest gold revenues in small businesses, job creation, and industrial development.
Looking ahead, he proposed deeper regional cooperation, including harmonized laws, joint refineries, and coordinated trade systems under the EAC, COMESA, and AfCFTA, to strengthen Africa’s collective position in global markets.
If managed well, he said, gold, alongside coffee and oil, could help drive Uganda’s “economic qualitative leap” — but only if revenues are used to build resilient institutions, infrastructure, and diversified industries.
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