Business 21 April 2026 Daily Monitor (Uganda)
Bank of Uganda Rolls Out Three-Year Pilot to Acquire Local Gold for Reserves
The Bank of Uganda has initiated a three-year pilot program to purchase domestically mined gold, adding it to the country's foreign exchange reserves to diversify holdings and formalize the gold sector. The controlled initiative aims to enhance reserve stability while promoting traceability and local value addition. Source: https://www.monitor.co.ug/uganda/news/national/bank-of-uganda-launches-three-year-pilot-to-buy-domestic-gold-for-reserves-5430992
The Bank of Uganda (BoU) has launched a Domestic Gold Purchase Programme, marking a shift in its reserve strategy by incorporating locally sourced gold. Announced on April 20, 2026, the three-year pilot began with test purchases on April 17.
This move seeks to diversify Uganda’s foreign exchange reserves beyond traditional dollars and euros, reducing risks tied to conventional assets. BoU will purchase gold solely from prequalified licensed miners, paying in Ugandan shillings at international market rates.
Gold deliveries go to designated refineries for assaying and storage at BoU. It will then undergo domestic refining to international standards before integration into official reserves. The program emphasizes a strong chain-of-custody system for full traceability from mine to reserve.
Developed with the Ministry of Energy and Mineral Development, the framework complies with regional certification mechanisms to curb illicit trade. BoU holds a Mineral Dealer’s License and is registered for anti-money laundering compliance.
The pilot tests the entire value chain, bolstering controls and economic linkages in Uganda’s gold sector. It aligns with national goals for mineral-led growth, similar to strategies in Ghana and Tanzania. Earlier projections suggested acquiring around 1,000 kilograms valued at $160 million.
Liquidity effects from shilling payments will be managed via open-market operations to maintain inflation targets. The effort stems from a high-level committee involving key government bodies, embedding environmental and governance safeguards.
Source: Daily Monitor (Uganda)