(Busia) – The Chinese Ambassador to Uganda, Zhang Lizhong, has encouraged Chinese companies and investors operating in Uganda to respect local laws, adhere to regulations, and show regard for Ugandan culture. Zhang emphasized that observing these standards will help maintain and strengthen the longstanding positive relationship between Uganda and China.
During a speech on Friday, November 1, 2024, at the Wagagai gold mining plant in Busia district, Zhang appealed to Chinese investors to support local development efforts. He encouraged them to invest in community needs such as education, health, water, sanitation, agriculture, and employment, noting that these contributions could create mutual benefits for both the investors and the Ugandan people.
Zhang highlighted that establishing good working relationships with local leaders and residents serves as the primary protection for projects undertaken in Uganda. “Ugandans have strong aspirations to develop the country, and you should help them through technology transfer,” he said.
Zhang’s remarks were made while commissioning a beneficiation center at the Wagagai plant, a facility designed to extract gold from ore through a flotation process. Still under construction, this center is expected to have a production capacity of five kilograms of refined gold per day, marking a significant step in the mining sector.
The ambassador described the Wagagai plant as a major investment with potential for both economic and social impact in Uganda. He praised the strong relations between Uganda and China, which he attributed to the strategic leadership of President Yoweri Museveni and Chinese President Xi Jinping, stating that the two countries are currently enjoying a historically strong alliance.
Meanwhile, Busia District Chairperson Stephen Mugeni Wasike announced that the district council would assign a permanent representative to the Wagagai plant. This representative will monitor and assess the amount of tax that the district is entitled to collect once production begins in early 2025. Mugeni stated that the district expects significant revenue through royalties and property taxes, in addition to job opportunities, socio-economic growth, and access to advanced technology that the plant’s operations will provide.
However, Mugeni raised several concerns regarding the plant’s labor practices and operational challenges. He noted incidents of poor compensation, the deaths of five workers, instances of worker assault, theft of company property, and the lack of official appointment letters for employees. Mugeni assured that these issues had been reported and addressed in accordance with Ugandan law.
Busia Resident District Commissioner Hajira Namagogwe also called on local residents to support and protect the Wagagai plant, emphasizing that the company should, in turn, enhance its corporate social responsibility initiatives for the benefit of the community.
Wagagai General Manager Tan Jiu Chang indicated that the plant’s full production operations are expected to start in March next year. He noted that with this increased production, the plant would contribute additional benefits to the local community, including higher levels of local employment, projected annual tax revenues of $200 million, and foreign exchange earnings of $100 million.
Table: Projected Annual Contributions from Wagagai Plant
| Contribution Type | Annual Amount |
|---|---|
| Tax Revenue | $200 million |
| Foreign Exchange Earnings | $100 million |
| Production Capacity | 5 kg gold/day |
