Govt Loses Billions in Illegal Gold Exports

This blatant violation of Section 149 of the Mining and Minerals Act (Cap. 159), which requires export permits for all minerals, has not only undermined regulatory compliance but also deprived the government of significant revenue.
A report from Auditor General Edward Akol has uncovered widespread irregularities in Uganda’s gold export industry, revealing that exporters have shipped gold worth Shs11 trillion without obtaining the mandatory export permits from the Ministry of Energy and Mineral Development.
This blatant violation of Section 149 of the Mining and Minerals Act (Cap. 159), which requires export permits for all minerals, has not only undermined regulatory compliance but also deprived the government of significant revenue.
The law imposes penalties of up to Shs200 million or five years' imprisonment for offenders, but enforcement appears to be lacking.
The report further details a Shs68.842 billion revenue shortfall from unpaid export levies.
Additionally, Shs439 billion in mineral rent fees owed by exploration and mining companies remains uncollected as of June 30, 2024.
Uganda Revenue Authority (URA) has also faced difficulties in taxing gold exports, with Shs340.56 billion in taxes reportedly uncollected.
The Mining and Minerals Act stipulates a levy of $200 per kilogramme on processed gold for export, but the government’s failure to enforce these payments has resulted in substantial revenue losses.
“These regulatory lapses jeopardize not just the mining sector but also Uganda’s fiscal health,” Akol warned, urging urgent government intervention to tighten oversight and enforcement mechanisms.
As these revelations come to light, pressure mounts on the government to address these gaps in regulation and ensure compliance within the gold export industry.
The stakes are high, and Uganda can no longer afford to lose billions in revenue to lax enforcement and non-compliance.