The Ministry of Energy and Mineral Development has announced tougher measures targeting unlicensed mineral dealers as government moves to streamline Uganda’s mineral trade and eliminate illegal dealings in the sector.
Speaking after a two-day stakeholders’ consultative meeting in Kampala, Commissioner for Mines Agnes Alaba said the government intends to ensure that all mineral transactions are conducted through officially recognised and licensed mineral markets.
According to Alaba, several investors are currently involved in buying and trading gold and other minerals without valid licences, a situation authorities say has contributed to smuggling, fraud, and loss of government revenue.
“Under the proposed Mineral Market and Buying Centre Regulations, only licensed operators will be allowed to participate in mineral trade, with strict punitive penalties awaiting those who fail to comply,” Alaba said.
The consultations brought together miners, refiners, processors, security agencies, the Uganda Revenue Authority, National Environment Management Authority, and district local government officials.
Stakeholders raised concerns relating to licensing procedures, security, traceability, and operating hours for mineral buying centres.
Government also unveiled plans to introduce a digital traceability system designed to track minerals from extraction sites through the supply chain up to export destinations.
Officials said the system will be integrated with Interpol databases to help identify traders linked to fraud, robbery, and other criminal activities.
“We will ensure that every gram of gold is secured at the market,” Alaba noted.
The ministry further revealed that all mineral exports will be subjected to stricter value-addition requirements before leaving the country.
Under the proposed standards, gold exports will only be permitted after refining to 99.9 percent purity, while gemstones must first be cut and polished locally before export.
“This market should have come as soon as yesterday to regulate the illegal and illicit trade in the sector,” Alaba added.
Meanwhile, players in the gold refining industry have welcomed the proposed reforms, saying they will help restore order and strengthen investor confidence in Uganda’s fast-growing mining sector.
Benard Mungu Feni, Director of EuroGold Refinery, said organised mineral markets would help genuine investors identify legitimate trading centres while eliminating illegal dealers.
“When foreign investors come into the country, they sometimes end up in the wrong places because they do not know where the market centres are,” Feni said.
Government officials say the reforms are expected to boost revenue collection, improve transparency, and strengthen Uganda’s reputation as a trusted destination for mineral investment.
