In a report presented to Parliament in January 2025, the Auditor General of Uganda, Edward Akol, revealed that the country loses approximately UGX 11 trillion annually due to illegal gold exports.

The auditor general’s report further uncovered a widespread failure to comply with formal trade regulations, resulting in massive revenue losses for the government.

“Our findings show that gold exports have been conducted without the necessary permits, bypassing legal processes required by the Uganda Revenue Authority (URA) and other regulatory bodies,” Akol stated.

He emphasized that the lack of oversight has undermined Uganda’s mining sector, a critical contributor to the nation’s revenue.

The investigation covered several years of trading activities and identified numerous companies involved in illicit gold exportation.

These firms exploited gaps in the regulatory framework, inadequate monitoring systems, and poor coordination among government agencies responsible for overseeing the sector.

The report also highlighted severe under reporting of gold exports, facilitated by the absence of proper documentation and a blatant disregard for export laws.

This under reporting led to significant tax evasion, negatively impacting Uganda’s foreign exchange earnings and compromising the integrity of its mining sector.

In response, the Uganda Revenue Authority and the Ministry of Finance pledged to strengthen monitoring mechanisms and improve enforcement measures to combat the illegal gold trade. “We are committed to enhancing regulatory systems to curb illicit activities in the gold sector and protect the economy from further revenue loss,” said a joint statement from the agencies.

However, the auditor general’s findings have sparked calls for reforms in Uganda’s mining sector to safeguard one of the nation’s leading revenue contributors.