Three years after President Yoweri Museveni banned unprocessed minerals, and riding on booming global demand, Uganda has launched a third gold refinery.
The newly launched Euro Gold Refinery will provide comprehensive services including assaying, smelting and refining of the precious metal in Kampala. Bernard Feni, the proprietor, said his plant will among others, boost value of the country’s mineral wealth by refining for the artisanal miners from Busia, Karamoja, West Nile regions of Uganda.
Providing refining services locally by officially licensed outfits is one of the ways that the government is deploying to formalize the country’s gold trade – hitherto informal and unregulated. By refining locally, the government is coaxing the local dealers to align the country’ gold trade with international standards thereby promoting official export- especially to European markets that follow several international standards.
Lack of adapting to international standards is one of the reasons that Uganda’s gold sales in international markets remained low in the past. Neighbours like Tanzania, that follow strict regulations conforming to international standards register higher formal international sales.
According to Bank of Uganda, in the first quarter of 2025 alone, Uganda exported about 10,000kgs of gold, earning the country some US$1,0225 billion (UGX 3.7 trillion). Uganda’s exports mainly go to United Arab Emirates, India, China. Little gold has also been exported to European destinations like Switzerland, United Kingdom, United States of America, Italy, France. Uganda’s exports to Europe are expected to rise when the country’s restores formality to its mineral wealth, therefore adhering to international standards.
In July 2025, gold sold at US$ 3,100 per troy ounce (oz). Market analyst however expects this price to rise to US$3,700/oz, and possibly even to US$4,500/oz by the end of 2025. 32.15oz make 1,000 grammes (1kg).
Globally, pundits estimate that the demand for gold is likely to go up because of the current geopolitical conditions occasioned by US – China trade wars, US tariffs around the world, the Russia-Ukraine war, conflict in the middle East (Israel-Iran). They say these conflicts have created uncertainties in the international markets, leading to the fall in value of the dollar.
As such investors are moving their money away from equities and treasuries and investing in gold which is currently a safe hedge. Moreover, central banks – in countries like China, India are buying gold to increase their own reserves. All of these are driving up the demand for precious metal. It is estimated that the demand will go up to 900 tonnes by the end of 2025.
Launching the plant, Ruth Nankabirwa, Minister of Energy & Mineral Development said the licensing of gold refiners is part of the government’s gold export policy- intended to improve mineral beneficiation but also to support government efforts of ensuring no minerals are exported in raw form. She said the country’s development vision 2040 emphasizes development of the mineral sector.
Phiona Nyamutoro, State Minister for Minerals said the Government was working towards streamlining the mining sector that has been bedevilled by informality, smuggling and sale of raw minerals.
Feni said the establishment of the refinery will assure gold exporters, buyers individual or companies of high-quality gold refined locally following good international eco-practices and regulated under the London Bullion Market Association (LBMA).
Euro Gold Refinery, he said, is the best gold refinery in Uganda as it promotes responsible mining and refining practices, ensuring sustainable use of precious minerals. “Our processes are designed to protect the environment while delivering high-quality gold.” The refinery is expected to further boost Uganda’s gold market.
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