Uganda’s central bank starts domestic gold purchase program

Uganda’s central bank said on Tuesday it had begun purchasing gold from domestic producers under a program announced two years ago to incorporate bullion as part of the country’s foreign reserves.

The first purchase was made on Friday, the Bank of Uganda said in an emailed statement to Reuters, without sharing details on the value of the gold purchased.

The central bank said it will conduct purchases under a three-year pilot program.

“The program 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,” BoU said in the statement.

“This will strengthen reserve adequacy and reduce risks associated with conventional reserve instruments.”

BoU joins other central banks in Africa such as Kenya and the Democratic Republic of Congo that have also announced moves to diversify reserves by buying gold.

In recent years Uganda has emerged as a major regional gold processor and trader. Last year, the country exported $5.8 billion worth of gold, a 76% increase from 2024, but small-scale wildcat miners still dominate domestic production.

(By Elias Biryabarema; Editing by Mrigank Dhaniwala)