Studies have found that Uganda’s gold exported have surpassed coffee yet little contribution in revenueCivil society organizations have raised concerns that Uganda is deriving limited benefits from its booming gold exports, despite the mineral overtaking coffee as the country’s leading export earner.Magara Siragi Luyima, the Energy and Extractive Industries Coordinator at Oxfam, said gold exports reached approximately USD 5.8 billion in 2025, surpassing coffee exports, which earned about USD 3.5 billion during the same period.Speaking at a dialogue on extractives governance and energy transition held under the theme “Ensuring a Just and Equitable Oil, Gas and Mining Sector to Finance Uganda’s Energy Transition,” Magara questioned whether the sharp increase in gold exports is translating into meaningful government revenue.“That is almost close to 10 percent of our GDP, but whereas we see the gold exports surging, is it translating into government revenue? Should it be able to support what we are dreaming about?” Magara asked.Magara noted that although gold exports have surpassed coffee exports for the first time, questions remain about whether the country is realizing adequate returns from the sector.“Gold exports have surpassed coffee exports for the first time. But the question is, whereas we see the gold exports surging, is it translating into government revenue?” he asked.According to Magara, Uganda’s mining sector contributes only about 2.2 percent to Gross Domestic Product (GDP), despite the sharp increase in gold exports.He said the Uganda Revenue Authority (URA) has assessed taxes and levies on several gold-exporting companies, but many have allegedly failed to settle their obligations.Magara cited examples of companies that accumulated substantial tax assessments between 2020 and 2024 but reportedly paid little or nothing.“In 2020 to 2024, Anish Trading Company had an assessment of Shs5.8 billion and paid zero. Bullion Refinery was assessed Shs17 billion and paid zero. Metal Testing and Smelting Company was assessed Shs12 billion and paid zero. Africa Gold Refinery also did not pay anything,” he said.He added that some companies issued promissory notes committing to settle their tax liabilities, but later ceased operations or left the country without making payments.“This means that what we hear about gold, yes, we are generating exports and everyone is talking about it, but nothing is coming to the Treasury,” he said.The concerns were echoed by Gloria Mugambe Kempaka, Head of the Uganda Extractive Industries Transparency Initiative (UGEITI) Secretariat, who described the situation as unacceptable.She argued that while Uganda celebrates impressive export figures, the benefits are not translating into public revenue.“It is so bad that people are making so much money from gold, and that gold is just going out of the country, and it is not paying a single shilling in taxes,” Mugambe said.Mugambe further noted that although gold has become Uganda’s leading export, the gains are largely accruing to private actors rather than the wider population.“We keep saying gold is a leading export, but it’s not bringing in anything. More gold goes out of the country than coffee, but no one is benefiting from it apart from the people who are in the business,” she said.Magara also criticized Uganda’s current gold taxation regime, arguing that the country’s export levy of USD 200 per kilogram remains fixed regardless of changes in international gold prices.He said the arrangement allows exporters to reap the benefits of rising gold prices while government revenues remain stagnant.“Prices are increasing, but the levy is fixed. As the price increases, we are not benefiting because we are losing much more value,” he said.According to Magara, the fixed levy effectively lowers Uganda’s share of the value generated by the gold trade as international prices continue to rise.Civil society groups have also raised concerns about the removal of gold royalties, which previously provided local governments and host communities with a share of mining revenues.Magara argued that the abolition of royalties has deprived mining communities of direct benefits from resources extracted in their areas.“As we talk, there is no royalty on gold. What does that mean? It means that communities are being robbed. They are not getting any value from what they have,” he said.He added that communities continue to bear the social and environmental impacts of mining activities without receiving adequate compensation or development benefits.Mugambe called for stronger public scrutiny of the sector and increased transparency regarding companies involved in gold refining and exportation.The concerns come amid growing debate about how Uganda can maximize returns from its extractive resources as the government prepares for commercial oil production and seeks additional revenues to finance development priorities.Civil society organizations are now calling for reforms to Uganda’s gold taxation framework, stricter enforcement of tax assessments, and greater transparency in the sector to ensure that the country’s growing gold trade translates into tangible benefits for citizens, local communities, and government revenues.-URNThe post Uganda’s Gold Exports Surge Past Coffee, But Is It Translating Into Meaningful Gov’t Revenue? appeared first on Business Focus.