How Uganda's gold boom a new solution for unemployment.
- Uganda gold miners association
- Dec 7, 2019
- 2 min read
Updated: Dec 8, 2019
Uganda's gold boom leaves small-scale miners behind
With exports experiencing a sharp rise, Uganda is formalising its gold sector. But who is benefitting?
by Alice McCool
19 July 2019 GMT+3
"There's gold over there but they don't let us touch it," says Jalia Namatovu, pointing to hills covered in a thick layer of vibrant green forest in Mubende, Central Uganda.
Here lie some of the country's rich gold reserves, which are increasingly being explored by Ugandan and foreign companies alike.
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Jalia Namatovu, 39, explains how miners in Mubende mine and process gold [Alice McCool/Al Jazeera]
"It's owned by a muzungu [white person]. Villagers say the company put crocodiles in the river so we can't get in. They get their water from somewhere else now," she laughs darkly.
Namatovu is a small-scale or artisanal gold miner - although the mineral has not actually passed through the 39-year-old's hands in nearly two years. "I'm hopeful we'll find gold soon because we have a licence now," says Namatovu, chairperson of Mubende Women Gold Miners Association.
Artisanal gold miners in Mubende - and across Uganda - have long been operating without licences. But in recent years, the government has begun formalising the sector, including stricter licencing requirements and biometric registration for miners. In May 2018, a new Mining and Mineral Policy was approved by the cabinet, and an accompanying law is in the draft stage - with public consultations expected this July.
The new system recognises artisanal miners as players and intends to make working conditions safer and ensure the sector contributes to Uganda's economic development, although most of these benefits are yet to be seen on the ground.
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Namatovu inspects rocks in search for gold at her new mining site [Alice McCool/Al Jazeera]
Uganda is not famed for its gold reserves. But since 2016, gold exports have rocketed in the East African country. According to official data, gold worth $514m was shipped out of Uganda last year - over 50 times what the country was exporting a decade ago. Yet Uganda is not producing more gold itself, raising questions about its source.
The answers may lie with the African Gold Refinery (AGR), a Belgian-owned firm whose deal with the Ugandan government preceded the sharp export increase. The company was recently alleged to have received gold worth $300m from Venezuela, surpassing US sanctions, and has also been accused of smuggling "conflict gold" from countries such as the Democratic Republic of the Congo (DRC). Uganda's main anti-corruption body is investigating the company for money laundering and tax evasion, according to Belgian newspaper De Standaard. AGR did not respond to Al Jazeera's multiple requests for comment over two weeks.

 AJ IMPACT /VENEZUELA Uganda's gold boom leaves small-scale miners behind With exports experiencing a sharp rise, Uganda is formalising its gold sector. But who is benefitting? by Alice McCool 19 July 2019 GMT+3 "There's gold over there but they don't let us touch it," says Jalia Namatovu, pointing to hills covered in a thick layer of vibrant green forest in Mubende, Central Uganda. Here lie some of the country's rich gold reserves, which are increasingly being explored by Ugandan and foreign companies alike.  Jalia Namatovu, 39, explains how miners in Mubende mine and process gold [Alice McCool/Al Jazeera] "It's owned by a muzungu [white person]. Villagers say the company put crocodiles in the river so we can't get in. They get their water from somewhere else now," she laughs darkly. Namatovu is…