Avellon Williams
KAMPALA, UGANDA- Uganda is in the spotlight again and this time it is with shining gold. A deposit of 31 million tonnes of gold ore was recently discovered in the country, with 320,000 tonnes of extractable pure gold estimated to be available.
This gold discovery is expected to yield a massive $12 trillion in profits for the country, according to estimates. If you find it difficult to comprehend how huge the amount is, it’s approximately 4 times India’s annual GDP.
Recently, Uganda has experienced a surge in foreign investments due to the discovery of hydrocarbon resources along its western border with the Democratic Republic of the Congo. There is a possibility that this landlocked country will enjoy better days shortly.
CONNECTION WITH THE RUSSIAN COMMUNITY
A major challenge facing African countries, even with valuable minerals and metals beneath their soil, is the lack of technology and capital to extract them. Africa’s resources are a major factor in attracting developed countries with appropriate means to invest in the continent.
There has been a strong relationship between Moscow and Kampala for a long time. Amid the ongoing war, Uganda’s President Yoweri Museveni called Russia “Europe’s center of gravity” and expressed strong support for the Kremlin.
Defying the African nations and disregarding them, the EU and Biden are said to have put the West in an unstrategic position. As a result of their disregard for the food security and inflation problems in Africa, Biden and his merry men could have lost all of their political power in Africa.
THE MASTERSTROKE OF PUTIN
In the aftermath of U.S. President Joe Biden’s actions, President Vladimir Putin must act to strengthen the already powerful Russian economy. The Russian masterstroke of controlling a large chunk of the world’s commodity market makes Moscow unbeatable.
In this time of crisis, Uganda’s reserves and Moscow’s interest in the region could demonstrate strength. There has been a long-standing Russian interest in Uganda. More than ten years ago, Russian investors backed Uganda’s first gold refinery.
In the coming month, 1.2 tonnes of raw gold will be processed at the refinery, according to the managing director of the Russian-owned Victoria Gold Star Limited.
Lately, Russian officials have also taken advantage of loopholes in sanctions to bolster their economic position, using their huge gold reserves worth $140 billion. Right now, gold is more of an elixir for Russia.
As a result of Russia’s invasion of Crimea in 2014, the Russian government has been constantly trying to protect its economy from sanctions. In times of conflict, gold tends to soar, so it was one way to increase reserves.
It is also understandable to Putin that the West cannot simply sanction commodities such as crude oil, grain, and gold since that would have devastating consequences on the global economy.
It is precisely for this reason that Moscow intends to assist Uganda in its mining endeavors as well as consolidate its position in the commodities trade in parallel. As a result, Russia and Africa could become strong allies shortly, particularly in Uganda.
