Africa-Press – Uganda. The Minister of State for Finance, Planning, and Economic Development, Amos Lugolobi, outlined the government’s strategic decision to incorporate gold into Uganda’s national reserves.
This initiative aims to enhance financial stability, formalise artisanal mining, and reduce the country’s reliance on foreign-held assets. The government has already begun storing gold reserves in local vaults, marking a significant shift in Uganda’s economic strategy.
“As we expand our economy, it’s essential to spread our risks. Gold has maintained a stable price over the years, making it a prudent addition to our reserves. With our ongoing gold mining initiatives and the establishment of a refinery, we are positioned to harness this valuable resource efficiently,” Lugolobi said
The Minister acknowledged the historical volatility associated with currency fluctuations, emphasising that diversifying reserves with gold could safeguard the country’s financial stability.
“By broadening our financial assets, we can mitigate risks associated with currency depreciation,” Lugolobi stated.
Concerns regarding transparency and accountability in gold purchases and storage have been prevalent, especially given Uganda’s past challenges with mineral wealth management.
To address these issues, Lugolobi assured that the government is committed to rigorous oversight.
“We have taken steps to ensure that any gold mined is processed and refined before export. This will not only add value but also facilitate better tracking and accountability of our gold resources,” Lugolobi affirmed.
Lugolobi acknowledged the potential for increased revenue through gold royalties. He outlined the government’s plans to support artisanal mining through improved organisation and access to resources.
“We are providing financial assistance through the Uganda Development Bank to enhance the technology used in mining, which will ultimately increase gold extraction efficiency,” Lugolobi explained.
Lugolobi emphasised the importance of bringing artisanal miners into the fold to ensure local communities benefit from the rich resources available.
“We are working to simplify the licensing process for artisanal miners, allowing them to operate legally and access government support,” Lugolobi noted.
“The goal is to not only harness our mineral wealth but also to create a sustainable framework that benefits our local communities and fosters economic growth,” Lugolobi added.
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