Ugandan President Yoweri Museveni has launched a US$15 million (UGX 52 billion) gold refinery in Entebbe, a first of its kind in East Africa. It is expected that the Africa Gold Refinery facility will see Uganda export more refined gold as opposed to trading in the unprocessed metal , through which the country losses several million dollars to European buyers.
The World Bank is re-considering its decision to suspend funding amounting to US$ 265 million (Ushs920 billion) for construction of various roads under the Uganda Transport Sector Development Projects, a top Bank official has said.
The World Bank in January 2015, in a move that hit the progress of the works, and affected the Shilling, suspended funding for on-going works on Fort-Portal- Kamwenge road, Hoima-Kabwoya, Kagadi-Kyenjojo road in the west of the country. The Tororo- Mbale-Soroti-Lira-Kamdin works in the east of the country were also suspended.
Until the end of 2014, Uganda was decided. Uganda was a party to the northern corridor Oil pipeline- through Lamu- Isiolo-Lokichar, in northern Kenya, over Ethiopia to South Sudan, down to Hoima in south western Uganda. President Yoweri Museveni publically said so. Uganda’s Minister of Energy & Mineral Development, Irene Muloni severally said so too.
The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has endorsed Uganda’s infrastructure strategy saying that good infrastructure is key to sustained growth. However she warned that excessive borrowing for infrastructure development could tail-spin the good intentions of growth as unsustainable debt could set in. She also warned that borrowing needs to be carefully vetted, and borrowings well governed and executed.
Uganda’s oldest and biggest clay building materials manufacturer, Uganda Clays, though still undergoing financial woes, is slowly coming out of them with a declaration of a profit for the first time in years in FY 2015/16. Uganda Clays, one time a monopoly producer of high quality roofing tiles, building bricks, decorative gullies, ventilation, interlocking and cover blocks, and suspended floor materials among others, is struggling since its near fatal decision to start a second plant in Kamonkoli in Eastern Uganda.
In what is seen by industry players as a pace-setter, the Uganda Standard Gauge Railways Project has launched a Local Content Strategy ahead of its works aimed at ensuring that the local economy benefits from the US$3.2 billion (UShs 11.2 trillion) investment.
The German Development Bank and French Development Agency –KFW and AFD respectively- together with the government of Uganda have now signed an agreement to make financing available for the construction works of the Muzizi power dam. This means that construction works are expected early 2018. The 45MW power dam is expected to be ready in 2021.
Tullow Oil has announced plans to farm down its interest in Uganda’s Albertine Oil Project to Total for US$900 million.
Tullow Oil said in a statement issued January 9th, “A Sale and Purchase Agreement with an effective date of 1 January 2017 has been signed in which Tullow has agreed to transfer 21.57 per cent of its 33.33per cent interests in Exploration Areas 1, 1A, 2 and 3A in Uganda to Total for a total consideration of $900 million.”
Black Mountain Resources, an Australian mineral prospector and investor, has reported that Namakera Mine potentially holds about 62 million tons of vermiculite, making it financially viable for commercial mining. Namakera is located on the slopes of Mt Elgon in the Mbale-Tororo area.
The African Development Bank (AfDB) and the African Development Fund (ADF) have committed to provide US$ 151 million (Ushs 528 billion) in loans to the government of Uganda for the construction of the Busega-Mpigi express highway. The four-lane highway will evacuate traffic from Kampala far afield onto the Masaka road which connects Uganda to Rwanda.