The Central Bank of Uganda said on Monday it will begin its long-planned domestic gold purchasing programme this month, joining other central banks globally that are increasing their gold reserves following a sharp rise in prices, according to Reuters.
Uganda first announced the initiative two years ago, stating that building gold reserves would strengthen the country’s foreign exchange buffers and help protect the economy from risks in international financial markets.
“If all goes as planned, we should be able to purchase at least 100 kg of gold between March and June 2026,” Adam Mugume, executive director for research and economic analysis at the central bank, told Reuters.
“We are finalising with gold refineries that have been contracted to carry out fire assaying and refining of gold to purity levels required.”
Spot gold rose more than 2% on Monday to $5,395.99 per ounce, driven by investor demand for safe-haven assets amid concerns over the impact of U.S.-Israel strikes on Iran.
Mugume did not indicate whether the recent price surge would affect the central bank’s buying plans. Gold prices have reached record highs this year amid heightened global political and economic uncertainty.
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Other African central banks, including those in Kenya and the Democratic Republic of the Congo, have also announced plans to diversify their reserves by purchasing gold.
Uganda exported $5.8 billion worth of gold last year, marking a 76% increase from 2024. However, domestic production is still largely dominated by small-scale wildcat miners.
The country commissioned its first large-scale gold mine last year, a Chinese-owned facility expected to process 5,000 metric tons of gold ore daily and produce around 1.2 tons of refined gold annually.
According to Mugume, the central bank will buy gold from artisanal miners as well as medium- and large-scale producers.
Uganda established its first bullion processing facility, Africa Gold Refinery, in 2017. Since then, several other refineries have been set up, handling both locally mined gold and shipments from neighboring Democratic Republic of Congo.
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Image Credit: Zawya
