KAMPALA, April 21 – Uganda’s central bank said it has begun purchasing gold from domestic producers under a programme announced two years ago to include bullion in the country’s foreign exchange reserves.
The Bank of Uganda said the first purchase was made on Friday, according to an emailed statement, although it did not disclose the value of the gold acquired.
The purchases will be carried out under a three-year pilot programme, the central bank said, as it moves to incorporate domestically mined gold into its reserves.
“The programme aims to build and diversify Uganda’s foreign exchange reserves portfolio by purchasing and processing domestically mined gold and including it in the foreign exchange reserves,” the bank said. It added that the move is expected to strengthen reserve adequacy and reduce risks associated with conventional reserve instruments.
Uganda joins other African central banks, including those in Kenya and the Democratic Republic of Congo, that have announced similar plans to diversify reserves through gold purchases.
In recent years, Uganda has grown into a key regional gold processor and trader as the country exported $5.8 billion worth of gold last year, marking a 76% increase from 2024 levels.
Despite this growth, domestic production is still largely driven by small-scale miners.
