KAMPALA, Uganda — Blessed Riverstones Uganda Limited, a Kampala-based mineral trading company, has dismissed recent media reports labeling it as a gold scam business, citing a lack of understanding of the industry and the company’s commitment to transparency and legitimacy.
Mr. Jailes Bahati Mumbere, the company’s representative, vehemently denied the allegations, describing them as malicious and unfounded.
“The government does not anywhere deal with scammers,” Mumbere said. “Every year, the government licenses mineral dealers, goldsmith, and those who will be doing core minerals. We go through a serious process of scrutiny, which goes as far as tax compliance.”
Mumbere explained that the company undergoes a rigorous scrutiny process, including tax compliance, to obtain its annual license from the Ministry of Energy and Mineral Development. The company has been licensed for four years, and Mumbere attributed the malicious reports to “people who just want to do fake stuff” and those who have been stopped from working with the company due to their “questionable activities.”
“We have had instances where people have even gone ahead to block our products that we export in Dubai, so that they can create a complicated situation for us,” Mumbere said. “We have also had issues of impersonation, where individuals have masqueraded as Blessed Riverstones Uganda Limited employees.”
The company has taken steps to protect its reputation, including removing its licenses from public view to prevent exploitation. Mumbere emphasized the company’s commitment to transparency and legitimacy, highlighting its membership with the National Chamber of Commerce and its charitable work.
“We support very many artisan miners, and we are also in support of very many artisanal mining groups in Namayingo and Mubende,” Mumbere said. “We have two mining sites, and we support most of these people, both in marketing their products and also providing them protective gears and giving them medical support.”
The company also provides environmental sensitization to the miners, highlighting the importance of responsible mining practices. Mumbere expressed concerns about the government’s lack of understanding of trading companies, citing the need for greater protection and consultation with local traders.
“The government is looking at refineries, government is looking at big, big players, but it’s not looking at the local traders,” Mumbere said. “And yet, the local traders are the ones that directly link with the local miners. That’s why you see, even in policy, there’s little consultation that is needed with the traders.”
Mumbere also criticized the government’s value addition policy, which he believes favors refineries over local traders. “The value addition in Uganda is not really value addition,” Mumbere said. “It is actually just refined primary business, primary processing.”
The company has called on the media to promote positivity and properly market the sector, highlighting the importance of accurate reporting. Blessed Riverstones Uganda Limited has denied any wrongdoing and maintains its commitment to ethical business practices.
The Ministry of Energy and Mineral Development recently said it takes allegations of wrongdoing in the mining sector seriously and would investigate any claims of misconduct.
Uganda’s export earnings have surged in the recent past, driven by a significant increase in gold exports. According to the Bank of Uganda, the country’s total export earnings reached $2.262 billion in the first quarter of the 2024/25 financial year, a 21.8% increase compared to the previous year.
Gold exports accounted for a substantial portion of the earnings, with 46,263 kilograms of gold valued at $2.98 billion exported in the year to June 2024. However, the gold industry faces challenges, including unpaid taxes. Only 9.74% of assessed taxes, amounting to Shs3.39 billion, have been paid, leaving a shortfall of Shs31.38 billion.
The government is working to address these challenges, with a focus on gold processing to boost exports and tap into the country’s estimated $620 billion mineral wealth. Gold exports now account for 21% of Uganda’s total exports, making it a leading export commodity.
