Yoweri Museveni loves to pronounce himself as the largest supporter in Africa in adding value.
According to Ugandan President, in power 39 years, Africa has allowed decades to “theft” through the export of raw materials, especially minerals and other commodities, to advanced economies that then reap the highest margins in the value chain.
Museveni has banned export of unpopular agricultural products in 2021, and in April, the ban was extended to all unprocessed raw materials, including gold, lehium and tin. Last month, the payment of the added value is manifested in the opening of the largest golden project in Uganda, Wagagai Gold Mining.
The fuel behind the project is an investment of $ 250 million by the Hongda Foundation in China, which is the Wagagai mining is the Ugandan sub -company. With 30 million tons of reserves that have proven useful in gold ore, wagagai can improve gold to 99.9 % purity, says the government, allowing the production of 1.2 metric tons annually.
Upon full operation, the project is expected to create more than 5,000 direct jobs, as gold exports generate more than $ 100 million annually during the age of 20. Uganda achieved $ 3.4 billion in gold exports in 2024, but mostly from the literal mining that Museveni wants to inhibit.
“Under my leadership, we will not export non -equipped minerals, because this undermines our economy,” Museini’s promise. The Wagagai project will finish “wasteful” exports and enter Uganda in a new era of value.
Equally important, for many observers, wagagai mining represents a new stage in the in -depth, but unequal relationship between Uganda and China. Chinese investors pumped nearly one billion dollars in sectors such as mining, agriculture, manufacturing, oil, gas and industrial gardens in the East Africa.
The gold and refining mining project is another step in China’s efforts to control African minerals. For Beijing, keeping Wagagai in a narrow fist is of strategic importance. Uganda witnessed its general debt to unprecedented levels, reaching $ 31.5 billion in June, of which 2.5 billion dollars represent expensive loans from Beijing. Parliamentary records indicate that Uganda has paid $ 178.7 million as of December 2024 to serve debt, and more than any of its lenders.
The cost of service of legislators has pushed to retreat from China to reduce interest rates; To date, but to no avail.
