The Bank of Uganda has launched a three-year pilot Domestic Gold Purchase Programme aimed at strengthening and diversifying the country’s foreign exchange reserves.
Accordingly, test purchases under the programme officially commenced on April 17, 2026.
According to the central bank, the initiative will see Uganda buy and process locally mined gold and include it in its reserves portfolio, reducing risks associated with conventional reserve instruments while improving reserve adequacy.
The Bank said it will purchase gold from “eligible, prequalified licensed miners,” with payments made in Uganda shillings based on prevailing international prices.
Under the arrangement, the gold will be delivered to designated refineries for assaying before being securely stored by the central bank. It will later be refined domestically to meet international monetary gold standards and, once certified, incorporated into the country’s official reserves.
The central bank noted that the Domestic Gold Purchase Programme is expected to contribute to the formalisation of Uganda’s gold sector by promoting local value addition and strengthening economic linkages.
Over the three-year pilot phase, the bank will test the entire value chain, from purchasing gold to integrating it into reserves, while enhancing traceability systems.
The programme is anchored on a chain-of-custody framework developed with support from the Ministry of Energy and Mineral Development to ensure full traceability of gold from mine site to export.
The mechanism aligns with requirements under the International Conference on the Great Lakes Region certification system aimed at preventing illicit mineral trade and verifying origin.
“This traceability mechanism… provides visibility across the supply chain, enabling verification of gold origin and safeguarding the integrity of the Programme,” the Bank stated.
In line with regulatory requirements, the central bank confirmed it has obtained a Mineral Dealer’s Licence from the Energy ministry and is registered with the Financial Intelligence Authority as an accountable entity for anti-money laundering compliance.
The BoU said the pilot phase will allow it to refine operations, strengthen controls, and apply lessons before a full-scale rollout.
The initiative follows extensive preparatory work guided by a high-level intergovernmental committee comprising key institutions, including the Uganda Revenue Authority, Ministry of Finance, National Environmental Management Authority, and the Uganda National Mining Company.
Uganda now joins countries such as Ghana and Tanzania that have adopted gold-backed reserve strategies using domestic production.
The central bank noted that the move also aligns with the government’s long-term growth strategy, where mineral development is identified as a key pillar.
“The Bank of Uganda remains committed to implementing the Domestic Gold Purchase Programme in a prudent, transparent, and accountable manner, consistent with its mandate and international best practices,” BoU's statement reads.
