The Bank of Uganda has officially started its Domestic Gold Purchase Programme, a new initiative aimed at strengthening and diversifying the country’s foreign exchange reserves.
According to Reuters, the central bank made its first purchase on Friday, April 17, 2026, under a three-year pilot programme. The value of the first gold purchase was not disclosed.
The Bank of Uganda said the programme will involve buying and processing domestically mined gold and adding it to Uganda’s foreign exchange reserves. The central bank said the move is intended to improve reserve adequacy and reduce risks linked to traditional reserve assets.
Under the programme, gold will be bought from eligible and prequalified licensed miners. Payments will be made in Uganda shillings, based on prevailing international gold prices.
The initiative comes at a time when gold has become one of Uganda’s most important exports. Reuters reported earlier this year that Uganda’s gold exports rose by 75.8% in 2025, reaching $5.8 billion, up from $3.3 billion in 2024. Gold has also overtaken coffee as Uganda’s leading export and major source of foreign exchange.
The central bank had previously indicated plans to purchase at least 100 kilogrammes of gold between March and June 2026. Local reports estimated the purchase value at about $160 million, depending on international gold prices.
The programme is also expected to support Uganda’s local gold sector by creating a formal market for licensed miners and processors. Analysts say the move could help reduce illegal gold trading, improve transparency, and increase the country’s control over a valuable natural resource.
Uganda has been positioning itself as a regional gold processing and trading hub, with gold coming from local producers as well as neighbouring countries. The country also launched its first large-scale gold mine in 2025, further increasing attention on the sector.
For Uganda, the gold buying programme is not only about mining. It is also part of a wider strategy to protect the economy from global financial shocks, strengthen reserves, and reduce dependence on foreign currencies such as the U.S. dollar.
If properly managed, the programme could help Uganda keep more value from its mineral resources while giving the central bank another tool to support economic stability.
