The Value Loss Problem
Africa produces approximately 20% of the world's gold but retains a fraction of its value through processing. Most raw gold leaves the continent in unrefined or semi-refined form, with value-adding refining done in Switzerland, the UAE, India, and the UK.
The difference is significant:
- Raw gold (90% purity): Sells at 90–93% of spot
- LBMA Good Delivery Bar (99.99%): Sells at 99.5–100% of spot
- Manufactured gold jewellery: 150–300% of spot value (retail)
For every tonne of gold exported raw, Africa loses an estimated $3,000–$10,000 per kg in potential value.
Existing African Refineries
| Country | Refinery | Annual Capacity | |---------|----------|------------------| | South Africa | Rand Refinery | 500 tonnes | | South Africa | Afgem, others | 100+ tonnes | | Zimbabwe | Fidelity Gold | 25 tonnes | | Tanzania | Mwanza Gold Refinery | 10 tonnes | | Rwanda | Gasabo Gold | 5 tonnes |
Notably absent: DRC and Uganda have no LBMA-accredited refineries, despite being two of Africa's top gold producers.
Uganda's National Refinery Plans
The Ugandan government has repeatedly discussed establishing a national gold refinery:
- 2019: Preliminary feasibility study commissioned
- 2022: Cabinet approved refinery concept at industrial park
- 2024: Ongoing discussions with UAE and Indian partners
A functional Ugandan refinery would be transformative — enabling 99.99% product to be exported directly, reducing leakage and increasing government revenue capture.
What This Means for Buyers Today
In the absence of local refining, buyers of DRC and Uganda raw gold have two options:
- Import raw/semi-refined: Buy at below-spot discount, refine in your country
- Coordinate through South Africa: Route shipments through Rand Refinery (adds cost but produces LBMA bars)
Equator Gold Resources can coordinate either pathway depending on the buyer's destination and refinery access.
Discuss Your Gold Sourcing Requirements
Interested in discussing legitimate gold sourcing, mining opportunities or African gold supply? Contact Equator Gold Resources to discuss your requirements and the applicable due-diligence process. Availability of gold is always subject to verification, and transactions are subject to applicable regulations.
About the Editorial Team
This article is published by the Equator Gold Resources Editorial Team for general educational purposes and does not constitute legal, tax, investment or professional advice. Gold transactions, mining, licensing, export, taxation, AML/KYC and documentation requirements differ by jurisdiction and change over time. Buyers and investors should confirm current requirements with the relevant government authorities in Uganda, the Democratic Republic of the Congo (DRC), South Sudan and other applicable jurisdictions, and seek advice from qualified legal, customs and assay professionals.
