The Bank of Uganda has launched a three-year pilot Domestic Gold Purchase Programme aimed at strengthening Uganda’s foreign exchange reserves by purchasing and processing domestically mined gold, with test purchases having commenced on April 17, 2026.

Under the programme, the central bank will purchase gold from eligible, pre-qualified licensed miners within Uganda and pay in Uganda shillings based on prevailing international gold prices. The gold will be delivered to designated, pre-qualified refineries for assaying, after which it will be stored with the Bank of Uganda. Subsequently the gold will be refined domestically and processed to meet international monetary gold standards before being incorporated into the country’s official foreign exchange reserves.

According to the Bank, the Domestic Gold Purchase Programme is expected to contribute to the formalization of Uganda's gold sector by promoting local value addition and strengthening economic linkages. Over the 3-year pilot phase, the Bank will test the full value chain, from purchasing gold to including it in official foreign exchange reserves and enhancing traceability systems.

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. It aligns with obligations under the International Conference on the Great Lakes Region Regional Certification Mechanism, which requires member states to implement traceability systems to verify mineral origin and prevent illicit flows. This framework is therefore critical in ensuring a transparent and accountable supply chain, mitigating risks of illicit trade, and strengthening confidence in Ugandan gold in both domestic and international markets.

In line with regulatory requirements, the Bank has obtained a Mineral Dealer's License from the Ministry of Energy and Mineral Development and is registered with the Financial Intelligence Authority as an accountable entity for Anti-Money Laundering and Countering the Financing of Terrorism.

The controlled 3-year pilot will allow the Bank to test operations, strengthen controls, and apply lessons learned before scaling up. Over time, the Programme is expected to contribute to stronger reserves and a more formal, transparent, and resilient gold sector in Uganda.

The Bank's readiness to start purchasing gold follows extensive preparatory work done under the strategic guidance of a High-Level Intergovernmental Committee bringing together key institutions, including the Ministry of Energy and Mineral Development, Solicitor General, Uganda Revenue Authority, Ministry of Finance Planning and Economic Development, National Environmental Management Authority, Financial Intelligence Authority, and the Uganda National Mining Company.

These efforts have produced a comprehensive operational framework covering governance, risk management, accounting, compliance, and a traceability mechanism to be used during the 3-year pilot. Environmental, social, and governance considerations are integrated through existing licensing regimes, which include the relevant safeguards and regular inspection and monitoring.

Uganda joins countries like Ghana and Tanzania that have incorporated gold into their reserve management strategies by leveraging domestic production for broader economic goals. The move aligns with the government’s broader economic agenda, where mineral development is a key pillar for long-term growth.

The Bank of Uganda said it will implement the programme in a “prudent, transparent, and accountable manner,” consistent with its mandate and international best practices.