KAMPALA, Uganda, Uganda’s central bank has announced the start of a domestic gold‑buying programme, a strategic effort to diversify the country’s foreign exchange reserves and strengthen its economy against global financial uncertainties. Under the initiative, the Bank of Uganda plans to purchase at least 100 kilograms of gold between March and June 2026, working with contracted local refineries to ensure the metal meets required purity standards before adding it to national reserves. The programme was first announced two years ago and is part of a broader move to reduce reliance on foreign currencies and traditional reserve assets.
Officials say the initiative will not only help build Uganda’s reserves but also support and formalise the domestic gold value chain. By buying refined gold from artisanal, medium and large‑scale miners, the central bank aims to increase transparency in the gold trade and encourage value addition within the country rather than exporting raw gold. The move aligns with similar policies in other African countries that are boosting local beneficiation and strengthening monetary resilience in times of market volatility.
Uganda has become a significant gold exporter in recent years, with exports valued at billions of dollars, though most production still comes from small‑scale miners. The new buying programme could help curb gold smuggling and ensure more of the mineral’s earnings remain within the formal economy. Analysts say holding physical gold in reserves can act as a hedge against economic shocks, particularly when global uncertainties push investors toward safe‑haven assets like bullion.