KAMPALA, Mar 2 – Uganda’s central bank will begin a domestic gold purchasing programme in March, marking a shift toward building gold reserves amid rising global demand for the metal.
The Bank of Uganda said the programme, first announced two years ago, is expected to support foreign reserves and reduce exposure to external financial risks. Adam Mugume, executive director for research and economic analysis at the central bank, said the bank plans to purchase at least 100 kilograms of gold between March and June 2026.
The central bank is working with local gold refineries to meet required purity standard as contracted refiners will handle fire assaying and processing before the gold is added to reserves, Mugume said.
Gold prices have risen sharply in recent months. Spot gold increased by more than 2 percent to $5,395.99 per ounce on Monday, driven by investor demand for safe haven assets amid geopolitical tensions. Prices have reached record levels this year as global uncertainty persists.
Uganda joins other African economies moving to diversify reserve assets. Policymakers in Kenya and the Democratic Republic of Congo have also announced plans to increase gold holdings.
The programme will source gold from artisanal, medium scale, and large scale miners within the country. Uganda exported $5.8 billion worth of gold in 2025, a 76 percent increase from 2024, highlighting the metal’s growing role in export earnings.
In addition, Uganda has expanded its refining capacity as the country established its first bullion processor, Africa Gold Refinery, in 2017, and has since added more facilities that process both domestic output and gold from neighbouring countries.
Uganda also commissioned its first large scale gold mine in 2025. The Chinese owned project is expected to process 5,000 metric tons of ore per day and produce about 1.2 tons of refined gold annually.
