Uganda is clamping down on imports of gold so that processors have to certify the precious metal is not from an area of conflict.
The move follows a United Nations report which concluded Kampala is a hub for gold traded illegally from the Democratic Republic of Congo. The value of gold processed and then exported from Uganda has jumped in recent years.
In 2015 Uganda exported about $35m (£26.5m) of the metal, but when the African Gold Refinery opened in 2016, the value of exports rose dramatically and last year $550m worth of bullion was exported, according to the Ugandan central bank.
That’s more than the trade in coffee, one of the economy’s important industries. In future gold brought into the country must be certified by the central bank and police to prove it is not linked to financing of conflict in places like South Sudan or the DR Congo.
However, it’s feared the new certification process may be undermined because small-scale artisanal miners often smuggle their precious metal across the border, taking advantage of lax controls.
The UN believes the lack of procedures to prevent the illegal trade in trade in conflict minerals has led to the surge in gold exports, a situation that may change with the requirement for importers to certify where their gold came from.
BBC
