Bank of Uganda Launches Three-Year Pilot to Buy Local Gold for Reserves

The Bank of Uganda (BoU) has started a three-year pilot programme to purchase gold mined in Uganda, marking the first time the country systematically adds domestically produced bullion to its official foreign exchange reserves.

Announced in a notice on April 20, 2026, with initial test purchases on April 17, the initiative targets eligible licensed miners. BoU will pay in Uganda shillings using prevailing international gold prices, helping preserve foreign currencies while boosting local liquidity.

Once bought, the gold undergoes assaying at designated refineries, domestic refining to meet international standards (995 purity or higher), and storage at the central bank. This positions it as a true reserve asset under IMF rules, reducing reliance on volatile foreign currencies, Treasuries, and euros.

Economist Dr. Susan Kavuma from Makerere University praises the move for diversifying reserves, shielding against global shocks, and fostering industry linkages like refining, jewellery, and mining services.

The programme emphasizes a robust chain-of-custody framework for full traceability from mine to reserve, developed with the Ministry of Energy and Mineral Development. It aligns with regional certification mechanisms to curb illicit trade and build market confidence.

BoU holds a Mineral Dealer’s Licence and is registered for anti-money laundering compliance. The pilot, guided by an intergovernmental committee, tests the full value chain, governance, and environmental safeguards before potential scaling.

Uganda follows examples like Ghana and Tanzania, tying the effort to its 10-fold growth strategy where minerals drive sustainable development.

Source: Daily Monitor (Uganda)