Bank of Uganda Launches Pilot Domestic Gold Purchase Programme to Diversify Foreign Reserves
KAMPALA, 20 April 2026 – The Bank of Uganda has officially launched a three-year pilot Domestic Gold Purchase Programme, with test purchases beginning on 17 April 2026.
The initiative aims to build and diversify Uganda’s foreign exchange reserves by purchasing domestically mined gold, processing it, and incorporating it into the official reserves portfolio. According to a statement from the central bank, the programme will strengthen reserve adequacy while reducing risks associated with conventional reserve instruments.
Under the programme, the Bank of Uganda will buy gold from eligible, prequalified licensed miners, making payments in Uganda shillings based on prevailing international gold prices. The gold will be delivered to designated refineries for assaying, stored at the central bank, and eventually refined domestically to meet international monetary gold standards before being added to reserves.
A robust chain-of-custody framework sits at the heart of the programme, ensuring full traceability from mine site to export. The mechanism, developed with support from the Ministry of Energy and Mineral Development, aligns with obligations under the International Conference on the Great Lakes Region Regional Certification Mechanism, which requires member states to verify mineral origin and prevent illicit flows.
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 as an accountable entity for Anti-Money Laundering and Countering the Financing of Terrorism.
The three-year controlled pilot will allow the central bank to test operations, strengthen controls, and apply lessons learned before any potential scaling up. The programme is expected to contribute to the formalisation of Uganda’s gold sector, promoting local value addition and strengthening economic linkages.
Uganda joins countries including Ghana and Tanzania that have incorporated gold into their reserve management strategies by leveraging domestic production. The initiative supports the Government’s 10-fold growth strategy, in which mineral development is a key pillar.
“Environmental, social, and governance considerations are integrated through existing licensing regimes, which include the relevant safeguards and regular inspection and monitoring,” the Bank noted.
The programme follows extensive preparatory work under a High-Level Intergovernmental Committee bringing together multiple institutions, including the Ministry of Finance, Uganda Revenue Authority, Solicitor General, and Uganda National Mining Company.
About The Author
