Busia’s Gold Rush: From Artisanal Pits to Industrial Refining

For nearly a century, Busia District in Eastern Uganda has shimmered with the promise of gold. What began in 1932 as small-scale prospecting has evolved into a complex mix of artisanal mining traditions and new industrial ambitions. Today, Busia is at the center of Uganda’s efforts to transform its mineral wealth into a cornerstone of national economic growth.

Busia’s gold is more than a mineral—it is a test case for Uganda’s ability to turn natural wealth into inclusive, sustainable prosperity.

A Legacy of Artisanal Mining

Generations in Busia—particularly in Tiira and Amonikakinei—have relied on artisanal and small-scale mining (ASM) for survival. Women and youth have long been at the heart of this sector, often tasked with crushing, sieving, and panning for small “points” of gold. For many households, these modest daily earnings provide food, school fees, and a lifeline in a district where alternative employment opportunities are scarce.

But the artisanal sector has its limitations. High licensing fees, unsafe working conditions, and middlemen-driven pricing have kept local miners at the margins of profitability. Abandoned pits scar the landscape, mercury continues to threaten community health, and few miners can scale their operations into sustainable enterprises.

Wagagai Gold Mine: A Game Changer

In 2025, Busia’s mining story entered a new chapter with the commissioning of the Wagagai Gold Mining and Refinery Project in Buteba Sub-county. Operated by Liaoning Hongda (China), Wagagai represents Uganda’s first large-scale industrial gold mine and refinery.

With a design capacity to process 5,000 tonnes of ore per day and refine 1–1.5 tonnes of gold annually at 99.9% purity, Wagagai signals Uganda’s shift from raw mineral exports to value addition at the source. The project is projected to create over 3,000 jobs, generate more than UGX 60 billion in annual tax revenue, and give Busia District a stronger stake in the national mining economy.

The project’s national importance was highlighted during its recent launch, which was graced by President Yoweri Kaguta Museveni. His attendance underscored the central government’s vision of using mineral wealth as a driver for Uganda’s industrialization agenda. On the same occasion, Energy and Mineral Development Minister Ruth Nankabirwa (left) inspected some of the materials used in the gold refinery during a guided tour of the Wagagai project—a clear indication of the government’s hands-on involvement in ensuring the success of this transformative investment.

Reinforcing this vision, President Museveni posted on X (formerly Twitter):

“I commissioned the Wagagai gold mining project in Busia District today, celebrating a significant step towards processing minerals in Uganda. Under my leadership, we will not export unprocessed minerals, as this undermines our economy.                 Wagagai aims to achieve 99.9% purity in gold processing locally, benefiting Uganda financially and creating over 5,000 jobs once fully operational. I urge other miners to ensure minerals are processed before export. By maximising our natural resources—gold, lithium, tea, iron, etc.—we can create jobs and industrialize Uganda. The Wagagai project is expected to generate over $100 million annually for 21 years, and we must leverage these resources for a sustainable future. I congratulate them!”

Balancing Opportunity with Responsibility

The promise of Busia’s gold boom comes with challenges. Large-scale mining has the potential to outcompete small-scale operators unless inclusive frameworks are developed. Ensuring that artisanal miners transition into formalized cooperatives, with access to credit, training, and safer technology, will be key to equitable growth.

Equally pressing are the environmental implications. From abandoned pits that become death traps for children to mercury-laced tailings that seep into soils and rivers, Busia has already felt the costs of unregulated mining. A sustainable gold sector requires stricter enforcement of environmental impact assessments (EIA), responsible rehabilitation of mined-out land, and investment in mercury-free processing methods.

Busia - Uganda’s Golden Future

Uganda’s gold exports surged to USD 2.3 billion in 2023, up tenfold from the year before. Much of this growth has been driven by improved refining capacity and new industrial investments like Wagagai. Busia stands at the frontline of this transformation—its story emblematic of both the opportunities and risks in Africa’s wider mining landscape.

If Uganda succeeds in bridging artisanal traditions with industrial efficiency, and in marrying profit with environmental stewardship, Busia could become a model for gold-led development in East Africa.