Uganda set to begin domestic gold buying programme

Bank of Uganda will launch its domestic gold purchasing programme this month. The initiative joins a worldwide push by central banks to increase gold holdings as prices surge.

The East African nation announced the plan two years ago. It aims to strengthen foreign reserves and protect the economy from international financial market risks.

Gold demand rises globally

Adam Mugume, executive director for research and economic analysis at the bank, shared targets. “If all goes as planned, we should be able to purchase at least 100 kg of gold between March and June 2026,” he told Reuters.

The bank is finalising deals with contracted gold refineries. These will conduct fire assaying and refine gold to required purity levels.

Spot gold rose more than 2% on Monday to around USD 5,395 per ounce. Concerns over U.S.-Israel strikes on Iran spurred a flight to safe assets. Mugume did not indicate if the price jump would alter the programme.

Bullion has reached record highs this year. Heightened global political and economic uncertainties drive the trend.

Central banks in Kenya and the Democratic Republic of Congo have announced similar reserve diversification through gold purchases.

Uganda gold sector grows

Uganda exported USD 5.8 billion worth of gold last year. This marked a 76% increase from 2024, though small-scale artisanal miners dominate domestic production.

The country commissioned its first large-scale gold mine last year. The Chinese-owned facility processes 5,000 metric tons of gold ore per day. It is projected to produce about 1.2 tons of refined gold annually.

The central bank will buy from artisanal miners as well as medium-scale and large-scale producers, Mugume said.

Uganda established its first bullion processor, Africa Gold Refinery, in 2017. Several others have followed, processing local gold and shipments from neighbouring Democratic Republic of Congo.

This programme could enhance economic resilience. By acquiring gold domestically, the bank supports miners and retains more value within the country. As global uncertainties continue, such strategies grow in importance across Africa.

Reuters