Entebbe police have launched an investigation into a major gold smuggling operation involving a customs officer from the Uganda Revenue Authority (URA) and a clearing agent.
The pair was arrested on Saturday at Entebbe International Airport with an alleged haul of 50kg of gold. Authorities are working to unravel potential connections to a larger syndicate believed to smuggle gold from the Democratic Republic of Congo (DRC) for illegal export to the United States.
According to insiders, the arrests were the result of a meticulous surveillance operation by the Entebbe minerals police, which culminated in the seizure of the consignment. Robert Ssenyondo, the commandant of the minerals police protection unit, said the suspects will soon be presented before the Entebbe Chief Magistrate’s court for prosecution.
This case sheds light on the broader issue of gold smuggling in the region, driven by Uganda’s reliance on gold imports to sustain its booming export trade. A significant example of this reliance is the dramatic increase in Uganda’s gold imports from Tanzania, which rose from $450.46 million in June 2023 to $1.77 billion in June 2024.
In the last 10 years, gold has become Uganda’s most important export. It is now the single-largest export earner, contributing above of 42 per cent of Uganda’s export earnings.
In the 10 years to June 2024, gold exports grew by $3.06bn, rising from just $25m in June 2014 to $3.09b in June 2024. According to data from Bank of Uganda, between June 2014 and June 2018, gold had been a peripheral export commodity in Uganda’s export matrix, contributing just 0.92 per cent to the country’s earnings.
All other non-coffee exports, including electricity, cotton, tea, tobacco, fish and related products, hides and skins, and sim-sim, among others, were by 2014, individually contributing much more than gold.
However, the precious metal now almost contributes much more than all non-coffee exports combined, a trend that has continued to build strongly since 2020. Bank of Uganda data indicates that as of June 2024, Uganda earned $6.22b from non-coffee exports, of which $3.09b, an equivalent of 49.7 per cent, was from gold.
