Uganda’s Central Bank to Launch Domestic Gold Purchase Programme This Month
Uganda Joins Central Bank Gold Rush as Prices Surpass $5,000/Ounce
Uganda is set to join the ranks of nations bolstering their financial reserves with bullion, as the Bank of Uganda confirmed it will initiate its domestic gold-buying programme this month. The move capitalizes on a historic bull run that has seen gold prices shatter the $5,000 per ounce barrier in 2026.
The East African nation first unveiled the strategy two years ago as a measure to diversify reserves away from the US dollar and insulate the economy from global financial volatility. According to Adam Mugume, the central bank’s Executive Director of Research, the institution aims to purchase at least 100 kilograms of gold between March and June of this year.
“If all goes as planned, we should be able to purchase at least 100 kg of gold between March and June 2026,” Mugume told Reuters. “We are finalising agreements with gold refineries contracted to carry out fire assaying and refine gold to the required purity levels.”
The central bank plans to source the gold from a broad spectrum of suppliers, including artisanal, medium-scale, and large-scale miners.
Export Boom and Local Production
Uganda’s gold sector has experienced exponential growth, with exports reaching $5.8 billion last year—a 76% increase from 2024. While small-scale miners still dominate production, the landscape shifted in 2025 with the commissioning of the country’s first large-scale gold mine. The Chinese-owned facility is expected to process 5,000 metric tons of ore per day, producing approximately 1.2 tons of refined gold annually.
The presence of domestic refineries, including the first bullion processor, Africa Gold Refinery (established in 2017), allows Uganda to process both locally mined gold and shipments from neighbouring countries like the Democratic Republic of Congo.
A Continental Shift Toward Gold
Uganda is part of a broader trend across Africa, where central banks are increasingly turning to gold as a strategic hedge. With the spot price surging more than 2% on Monday to $5,395.99—driven largely by escalating geopolitical tensions following US-Israel strikes on Iran—investors and nations alike are seeking safe-haven assets.
Countries such as Ghana, Zimbabwe, Nigeria, and the DRC are actively building reserves and refining capabilities to combat currency depreciation, high inflation, and foreign exchange shortages. By accumulating gold, these nations aim to enhance financial stability and reduce vulnerability to global market shocks.
The global central bank buying spree, coupled with rising geopolitical uncertainty, has been cited as the primary driver behind the 80% surge in gold prices since early 2025.
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