How Busia’s twin mega projects are reshaping Uganda’s economic future

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OPNION

By Habib Sseruwagi

In the heart of Uganda’s Bukedi subregion, a quiet revolution is underway — one forged in gold and propelled by steel.

The recent inauguration of the Wagagai Gold Mining Company in Busia, alongside the launch of the Standard Gauge Railway (SGR) construction in the neighbouring Tororo, marks a seismic shift in Uganda’s economic trajectory.

These two mega projects are not just infrastructural milestones; they are strategic instruments of industrialisation, job creation, and regional transformation.

The Wagagai Gold Mining Project, a $250m Chinese-owned venture, is Uganda’s first large-scale commercial gold mining operation. Located in Alupe village, Busia district, the mine spans over nine square kilometres of mineral-rich terrain and boasts a processing capacity of 5,000 tonnes of gold ore daily. With an annual output projected at 1.2 metric tonnes of refined gold at 99.9% purity, Wagagai is set to multiply Uganda’s gold production by over 286 times, compared to the 0.0042 tonnes recorded in 2023.

This quantum leap is not merely about volume — it is about value. By refining gold domestically, Uganda captures a significantly larger share of the mineral’s worth, aligning with President Yoweri Museveni’s long-standing crusade against the export of raw materials.

“It is criminal for anybody to argue for the continued exports of raw materials in Africa, when there is 90% more value in that product that you are giving to the outsiders,” Museveni declared during the launch ceremony. His words underscore a broader economic philosophy: that true wealth lies not in extraction, but in transformation.

The Wagagai refinery, which began construction in 2016 and recently obtained its gold production licence, embodies this ethos. It is designed to meet international bullion standards, ensuring Uganda’s gold is not just mined, but marketed as a premium product on the global stage.

The economic implications are profound. The project is expected to generate over $100m annually in foreign exchange and contribute at least $10m in taxes. More than 3,000 direct jobs will be created, spanning mining, logistics, healthcare, and support services.

For the Bukedi sub-region, this influx of employment and investment could be transformative. Local communities are already witnessing improved infrastructure, including access roads, water systems, and housing for workers. Technical training programmes are being rolled out to equip residents with skills in mineral processing, safety protocols, and environmental management.

Tan Chun Chi, the general manager of Wagagai Mining (U) Limited, emphasised the company’s commitment to sustainable development: “We are not just here to mine gold, we are here to build capacity, transfer knowledge, and uplift the communities around us.” His remarks reflect a growing recognition that mining must be inclusive and responsible, especially in regions where livelihoods are fragile and ecosystems delicate.

Parallel to this golden surge is the steel-bound promise of the Standard Gauge Railway. The SGR project, spearheaded by Uganda’s Ministry of Works and Transport, is a cornerstone of the country’s Vision 2040 and the National Development Plans. The first phase, stretching 273 kilometres from Malaba to Kampala, will eventually extend to Majanji in Busia, reinforcing the town’s role as a commercial gateway.

With six stations along the route and trains capable of speeds up to 120 km/h for passengers and 100 km/h for freight, the SGR is poised to revolutionise transport logistics in East Africa. Currently, Uganda relies heavily on the aging Meter Gauge Railway, which handles only a fraction of the nation’s freight. The SGR offers a modern alternative — one that promises to halve freight costs from Mombasa to Kampala, reducing them from $3,250 to approximately $1,600 per container.

This cost efficiency is a game-changer for traders, manufacturers, and farmers alike. It means faster delivery times, lower overheads, and enhanced competitiveness in regional and global markets.

Beyond economics, the SGR brings environmental and social benefits. A projected 72% reduction in hydrocarbon emissions will contribute to Uganda’s climate goals, while improved safety standards will reduce road accidents and congestion. The construction phase alone is expected to create thousands of jobs, with opportunities in engineering, surveying, and project management. Local content policies ensure that Ugandan firms and workers are prioritised, fostering skills development and entrepreneurship.

President Museveni, during the launch of the Malaba–Kampala route, called the SGR “a big transformation,” adding: “This railway will not only connect Uganda to the world, but also connect Ugandans to opportunity.” His vision is echoed by regional leaders who see the SGR as a linchpin in East Africa’s integration strategy. The railway will link Uganda to key ports in Kenya and Tanzania, and eventually to Rwanda, South Sudan, and the Democratic Republic of Congo, creating a seamless trade corridor across the continent.

For Busia, the convergence of gold and rail is more than symbolic — it is strategic.

The town is already a bustling border post, facilitating trade between Kampala and international markets. With the Wagagai mine and the SGR extension, Busia is poised to become a logistics and industrial hub. Inland container depots, industrial parks, and service centres are expected to spring up, attracting investors and catalysing urban development.

The ripple effects will be felt across the Bukedi subregion. Districts like Tororo, Butaleja and Pallisa stand to benefit from improved connectivity, increased commerce, and enhanced public services.

Schools, hospitals, and markets will flourish as economic activity intensifies. Youth unemployment, a persistent challenge in the region, could see significant declines as new industries absorb labour and stimulate innovation. Winnie Ngabirwe, a mineral development expert, captured the moment aptly: “If this is, indeed, the volume that we have, it is time to clean our house, and do business, in developing ourselves and our country, by going to the middle-income status and beyond”.

Her words resonate with a national sentiment — that Uganda’s time has come, and that its future will be built not just on resources, but on resilience, strategy, and vision. In sum, the Wagagai Gold Mining Project and the Standard Gauge Railway are not isolated ventures. They are interlinked pillars of a new economic architecture — one that prioritises value addition, infrastructure, and inclusive growth. For Uganda, and especially for the Bukedi subregion, they represent a golden opportunity to rewrite the development narrative. And if the momentum holds, Busia may soon be known not just as a border town, but as the beating heart of Uganda’s industrial renaissance.

The writer is a member of the Equal Opportunity Commission