Bank of Uganda has launched a three-year Domestic Gold Purchase Programme, beginning its first transaction on April 17, to strengthen foreign exchange reserves and formalise Uganda’s gold sector. Under the initiative, the central bank will buy gold from licensed miners in Uganda shillings at international prices, refine it to global standards, and add it to national reserves—helping diversify assets, improve reserve adequacy, and reduce reliance on traditional instruments.
The programme is expected to provide miners with a ready market, curb smuggling, and increase local earnings, while promoting value addition and stronger economic linkages. Implemented with support from the Ministry of Energy and Mineral Development, it includes a traceability system to ensure transparency and accountability across the supply chain.
The move comes amid rising global demand for gold, with central banks purchasing over 1,000 tonnes in 2024, the highest level in decades, as countries shift toward safer assets during geopolitical and market uncertainties. Uganda joins nations such as Ghana, Madagascar, and Mongolia in adopting similar strategies to build reserves and regulate the sector.
Domestically, the initiative builds on a booming gold industry that exported $5.8 billion in 2025, making it Uganda’s top export earner. Meanwhile, the country’s foreign exchange reserves have grown to about $6 billion by late 2025, supported by strong export performance and capital inflows. Analysts note that increasing gold holdings could help cushion the economy against external shocks, including fuel and currency volatility.
With the central bank already licensed and compliant with anti-money laundering regulations, the programme will initially test operations before scaling up. If successful, it is expected to boost government revenues, stabilise miner incomes, and position Uganda to gain greater value from its expanding gold trade.
