Key Questions and Answers on the Gold and Minerals Export Business in Uganda

1. BACKGROUND

Uganda is undoubtedly described as a gold hub within the east African region. This is the case because of its growth in its gold exports to the extent that gold is now Uganda’s number one foreign exchange earner. Statistics indicate that Uganda gold exports surged from USD 1.26 billion in 2019 to USD 6.4 Billion in 2025.

This growth has placed Uganda at the centre of international business where gold buyers are jetting into Uganda every day for gold purchase and eventual exportation.

This article will provide an international gold buyer with information they require to commence and conduct a successful gold business. It will take the form of question and answer to allow for specific responses to the many questions intending gold buyers seem to be grappling with. These questions mirror those questions put before  us by several intending international gold buyers.

2.0 KEY QUESTIONS AND ANSWERS

2.1 WHICH LAWS REGULATE MINING AND THE GOLD BUSINESS IN UGANDA?

The gold business in Uganda is regulated under the ministry of Energy and mineral development. Under the Mining and minerals Act Cap 159 and regulations made thereunder, buying and selling of minerals or tailings either as principal or agent without a licence is prohibited. This law thus applies to all activities, operations and transactions related to the prospecting, exploration, mining, development, exploration, research and benefaction of minerals including the processing, smelting, refining of minerals and trading of mineral substances.

The regulation has been aligned in areas of eligibility of for entry, continuing compliance through filing quarterly returns and continued supervision. All required returns are filed using the Cadastre portal which is an interactive electronic platform for all stakeholders in the mining sector in Uganda.

By way of listing, below are the laws that regulate the mining sector:

• The 1995 Constitution
• The Mining and Minerals Act Cap 159
• The Mining (Licencing) Regulations, No. 72 of 2023
• The Companies Act, Cap 106
• The Contracts Act, Cap 284;
•  The Land Act, Cap. 236;
• The Income Tax Act, Cap. 338 
• The Occupational Safety and Health Act, Cap 231;
• The Partnership Act, Cap 110
• The Public Finance Management Act, Cap 171
•  

2.2 WHICH LICENCES ARE REQUIRED TO DEAL IN MINERALS IN UGANDA?

Under the Mining and Minerals Act Cap 159, the licences required entirely depend on the nature of business one intends to conduct or differently put, the nature of mineral right. If one is intending to buy and sell gold or any other precious metal, such company or person will be required to process a Mineral dealer’s licence which expires annually. If one desires to conduct mining upon confirming presence of mineral deposits, such person will apply for a mining licence which may be small, medium or large scale depending on the prospective deposits report. Similarly, if one has prospect for minerals in a particular locality in Uganda, such company or person shall be required to apply for a prospecting licence which is non-exclusive and not renewable.

Briefly this below is a list of licences one can apply for depending on the specific activities or mineral rights they intend to acquire:

1. Prospecting licence
2. Exploration licence
3. Retention licence
4. Large scale mining licence
5. Medium scale mining licence
6. Artisanal mining licence
7. Mineral processing licence (MPL)
8. Mineral smelting licence (MSL)
9. Mineral Refining Licence (MRL)
10. Mineral dealers licence

2.3 WHICH GOVERNMENT BODY IS RESPONSIBLE FOR REGULATING MINERALS AND GOLD IN UGANDA?

Uganda’s ministry of Energy and Mineral Development is responsible for regulating the entire minerals value chain. The ministry created the Directorate of Geological survey and Mines (DGSM) which oversees the regulation of mining activities in Uganda and granting of mineral rights.

The Ministry has created the mining cadastre portal which is the interactive online platform where everyone interested in acquiring mineral rights must register. The said portal also receives and processes all applications for mineral rights, licences and permits.

2.4 ARE FOREIGN APPLICANTS ELIGIBLE TO APPLY FOR LICENCES TO DEAL IN MINERALS IN UGANDA?

The laws do not allow for a foreign individual applicant to be granted a mineral right in Uganda. A foreign company however that has registered under the Companies Act is eligible for granting of mineral rights. Further, foreign nationals who incorporate themselves into a company under the laws of Uganda are also eligible for being granted a mineral right.

2.5 WHAT ARE THE REQUIREMENTS FOR EXPORTATION OF MINERALS AND GOLD FROM UGANDA?

The act requires that holders of licences such as the Mineral dealer’s licence would still require obtaining a permit from the Directorate of Geological Survey and Mines before conducting any export. The Mining Act makes it an offence to export any gold/mineral from Uganda without complying with the Act.

The permit will not be issued until confirmation that the mineral intended to be exported has paid all loyalties and is of the regulatory purity allowed at the time of conducting the export. If the mineral in question is gold, the assay report must indicate the purity, weight and metallic composition of the bars or nuggets.

2.6 WHAT REMEDY IS AVAILABLE TO AN APPLICANT WHOSE APPLICATION HAS BEEN REJECTED?

If one believes that their application has been unreasonably rejected by the Department of Geological survey and mines upon submitting all documents required to be submitted, such aggrieved applicant can appeal to the Minister.

The Minister referred to is the Minister for Energy and Mineral Development who is clothed with powers to vary or confirm the decision. The framework also allows for an applicant who may be aggrieved by the decision of the minster to appeal to the High Court for judicial review.

2.7 HOW LONG ARE LICENCES ISSUED TO DEAL WITH MINERALS IN UGANDA?

Under the Mining and minerals Act and regulations made thereunder, all mineral dealers licences expire on 31^st December of the year it is issued.

This means that the applicants must plan to commence their applications early in the year to allow for sufficient time to process and to do business before the said licences expire.

2.8 WHICH DOCUMENTS ARE REQUIRED TO EXPORT GOLD FROM UGANDA?

Exportation of gold from Uganda requires several documents which we list below but some countries may require additional documentation. As such the list below may be a guide but not an exhaustive list for exportation to all countries. The documents include:

1. Ownership Certificate
   1. Certificate of Origin
   1. Non-criminal Certificate
   1. Assay Report
   1. Exportation Certificate/permit
   1. Commercial Invoice
   1. Tax payment Certificate
   1. Parking list
   1. All shipping documents

2.9 DOES THE MINISTRY REGULATING GOLD BUSINESS IN UGANDA REGULATE THE GOLD PRICE?

No. Whereas the LBMA Gold and silver remain global benchmarks for gold prices, in Uganda gold prices remain a factor of demand and supply. This situation makes it possible for buyers to deal in gold at a price way below the international gold prices.

2.10 HOW CAN ONE FIND LEGITIMATE GOLD SELLERS IN UGANDA?

Gold is a product that is highly pricy and demanded all over the world. For that reason, several scammers target unsuspecting gold buyers especially international gold companies.

As a lawyer, I have always avoided recommending gold sellers to our international gold buyers who retain our legal advisory services because of the risks associated with this business.

I therefore recommend that every buyer should conduct sufficient baseline due diligence before conducting transactions even when the transaction is for a small quantity such as 2-5kgs. Due diligence may require the buyer to retain a lawyer or a similar professional at a fee but saves the buyer from loosing much more money in scam transactions.

2.11 CAN A GOLD SELLER CONTRACT WITH THE GOLD BUYER TO AVOID PAYING TAXES IN UGANDA?

No. In Uganda, any contract to circumvent tax laws and the duty to pay taxes would be illegal and unenforceable. It is best that the buyer ensures that the transaction trajectory agreed to by the seller which should always form part of their supply and purchase agreement (SPA) includes payment of all local loyalties and taxes.

Importantly, tax assessment in Uganda is generated on the Uganda Revenue Authority portal which automatically generates a verifiable Payment reference number (PRN).

2.12 HOW CAN A FOREIGN NATIONAL BUY GOLD FROM UGANDA WITHOUT REGISTERING A COMPANY?

A foreign national may buy gold from Uganda without a licence if he is able to find a licenced partner to work with either independently or through a joint venture arrangement.

What is crucial is that the entity that conducts the exportation is clothed with the right to deal in minerals by way of obtaining and maintaining a valid mineral dealers licence.

3.0 CONCLUSION

From our experience supporting international gold buyers, we have since realised that the gold business is one of those trades that require careful scrutiny at every level of the business chain in order to attain sustainable success.

Whether you are a new gold trader, international experienced gold buyer venturing into a new market for supply, it is crucial to observe scrutiny and obtain all information prior to finalising transactions.