KAMPALA — In a major move to diversify the country’s foreign exchange assets, the Bank of Uganda (BoU) has officially launched a three-year pilot Domestic Gold Purchase Programme.
The initiative, which commenced test purchases on April 17, 2026, aims to build national gold reserves by purchasing and processing domestically mined gold. By including gold in its reserve portfolio, the central bank seeks to strengthen reserve adequacy and mitigate risks associated with traditional international reserve instruments.
A Strategy for Economic Resilience
The central bank will purchase gold from eligible, prequalified licensed miners using Uganda Shillings, based on prevailing international market prices. The gold will then be refined domestically to meet international monetary standards before being incorporated into the official national reserves.
Beyond simply accumulating bullion, the program is designed to:
• Formalize the Gold Sector: Encourage local value addition and create stronger economic linkages.
• Enhance Traceability: Implement a robust “chain-of-custody” framework to verify the origin of gold, preventing illicit trade and ensuring compliance with regional mineral certification standards.
• Strengthen the Shilling: By purchasing in local currency, the bank reduces the immediate pressure on foreign exchange demand.
Strengthening Oversight
The Bank has obtained a Mineral Dealer’s License from the Ministry of Energy and Mineral Development and is registered with the Financial Intelligence Authority (FIA). This ensures that the program adheres to strict Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) protocols.
“The controlled three-year pilot will allow the Bank to test operations, strengthen controls, and apply lessons learned before scaling up,” the BoU statement read.
Regional Alignment
With this launch, Uganda joins neighbouring countries like Ghana and Tanzania, which have successfully integrated domestic gold into their reserve management strategies. The initiative is a key pillar of the government’s 10-fold growth strategy, positioning mineral development as a critical macroeconomic tool for sustainable development.
The Bank of Uganda remains committed to executing this program in a transparent and accountable manner, ensuring that Uganda’s mineral wealth directly supports long-term national economic stability.
