The Bank of Uganda Launches Domestic Gold Purchase Programme to Boost Foreign Reserves
The Bank of Uganda's initiative aims to diversify reserves, formalise the gold sector and strengthen economic resilience
As countries such as Ghana, Tanzania and Botswana intensify efforts to diversify their mineral portfolios, the Bank of Uganda has launched a Domestic Gold Purchase Programme to strengthen its economic position.
The three-year initiative is designed to build and diversify Uganda’s foreign exchange reserves by purchasing and processing domestically mined gold for inclusion in the national reserve portfolio. This move is expected to strengthen reserve adequacy while reducing risks associated with traditional reserve instruments.
“Bank of Uganda will buy gold mined in Uganda from eligible, prequalified licensed miners. Payments will be made in Uganda shillings, based on prevailing international gold prices. The gold will be delivered to designated, prequalified refineries for assaying, after which it will be stored in the Bank of Uganda. Subsequently, the gold will be refined domestically and processed to meet international monetary gold standards. Once certified, the gold will be incorporated into Uganda’s official foreign exchange reserves,” reads a statement from the bank.
Through the programme, Uganda also aims to formalise its gold sector by promoting local value addition and strengthening economic linkages across the mining value chain.
To support the pilot phase of the programme over the next three years, the Bank of Uganda has secured a Mineral Dealer’s Licence from the Ministry of Energy and Mineral Development. It also registered with the Financial Intelligence Authority as an accountable entity for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).
“The Programme is anchored on a robust chain-of-custody framework, which is central to ensuring full traceability of gold from mine site to export. This traceability mechanism has been developed with the support of the Ministry of Energy and Mineral Development to provide visibility across the supply chain, enabling verification of gold origin and safeguarding the integrity of the Programme.”
