The Bank of Uganda has launched a three-year pilot Domestic Gold Purchase Programme with an aim to strengthen the country’s foreign exchange reserves and reduce reliance on traditional reserve assets.
Test purchases under the programme commenced on April 17, 2026, with the central bank confirming that it will begin acquiring gold mined within Uganda as a strategy to diversify its reserve portfolio.
The initiative will see the central bank purchase gold from prequalified and licensed miners, paying in Uganda shillings based on prevailing international prices, before processing and eventually incorporating the gold into the country’s official reserves.
Under the arrangement, gold acquired will first be delivered to designated refineries for assaying, after which it will be securely stored and later refined domestically to meet international monetary gold standards.
“Once certified, the gold will be incorporated into Uganda’s official foreign exchange reserves,” the Bank said.
The programme is a long-term intervention aimed at enhancing reserve adequacy and reducing exposure to risks associated with conventional reserve instruments.
Beyond reserve management, the central bank says the programme is designed to formalise Uganda’s gold sector, promote value addition and strengthen economic linkages within the mining industry.
“The programme will test the full value chain, from purchasing gold to including it in official foreign exchange reserves and enhancing traceability systems,” the statement noted.
A key feature of the initiative is a strict chain of custody framework to ensure full traceability of gold from the mine to final processing. The system has been developed in collaboration with the Ministry of Energy and Mineral Development to improve transparency and curb illicit trade.
The traceability mechanism aligns with regional obligations under the International Conference on the Great Lakes Region certification system, which requires member states to verify the origin of minerals and prevent illegal flows.
“This framework is critical in ensuring a transparent and accountable supply chain, mitigating risks of illicit trade and strengthening confidence in Ugandan gold in both domestic and international markets,” the Bank stated.
To support the programme, the central bank has secured a Mineral Dealer’s Licence from the Ministry of Energy and Mineral Development and is registered with the Financial Intelligence Authority as an accountable entity under anti money laundering and counter terrorism financing regulations.
The three year pilot phase will allow the Bank to test operational systems, strengthen oversight mechanisms and refine the model before a potential scale up.
The programme follows extensive groundwork coordinated through a high level intergovernmental committee that brought together key institutions including the Ministry of Finance, the Uganda Revenue Authority, the National Environmental Management Authority and the Uganda National Mining Company.
According to the central bank, the framework developed covers governance, risk management, compliance and environmental safeguards, with existing licensing regimes expected to ensure adherence to environmental and social standards.
Uganda now joins countries such as Ghana and Tanzania that have integrated domestically sourced gold into their reserve management strategies.
The move is also aligned with the government’s broader economic agenda, where mineral development is identified as a key driver under the national growth strategy.
The Bank of Uganda said it will implement the programme in a prudent, transparent and accountable manner positioning it as both a macroeconomic tool and a catalyst for building a more formal and resilient gold sector.
