KAMPALA — The Bank of Uganda executed its first gold purchase on April 17, 2026, acquiring bullion from licensed artisanal and small-scale miners under the newly launched Domestic Gold Purchase Programme, a three-year pilot initiative designed to integrate locally sourced gold into the nation’s foreign exchange reserves.
The transaction, conducted in Ugandan shillings at prevailing international market rates, marks the central bank’s formal entry into the domestic gold supply chain. Under the programme’s framework, purchased ore is routed through certified local refineries for assaying and processing before being stored in the Bank of Uganda’s vaults as reserve assets.
Officials state the initiative aims to diversify reserve holdings beyond traditional foreign currencies, reduce exposure to external economic shocks, and bring greater regulation to a sector long dominated by informal and unregulated mining activity. The Bank of Uganda has secured a Mineral Dealer’s Licence and entered into agreements with prequalified entities, including EuroGold Refinery Ltd, to facilitate processing and ensure compliance with regional traceability standards aligned with the International Conference on the Great Lakes Region.
The pilot targets an annual intake of between seven and ten tonnes of refined gold, building from an initial procurement phase targeting at least 100 kilogrammes between March and June 2026. Uganda joins regional peers such as Ghana and Tanzania, which have implemented similar state-led gold procurement mechanisms to bolster reserves and curb illicit cross-border flows.
Despite the programme’s stated objectives, the Bank of Uganda has not disclosed the volume of gold acquired in the inaugural transaction, the specific districts or mining cooperatives involved, or the exact price paid per unit. No public documentation has been released confirming the origin of the purchased gold or detailing how chain-of-custody protocols are being applied in practice.
This absence of transparency has drawn scrutiny from civil society monitors, who note that the lack of verifiable data risks undermining confidence in a sector historically associated with smuggling, particularly from the Democratic Republic of Congo, and raises concerns about whether artisanal miners are receiving fair compensation under the scheme.
While the Bank of Uganda has not yet released a timeline for future disclosures, officials involved in the programme’s design have indicated that regular reporting on procurement volumes, supplier identities, and refinery outputs is under internal review. No public commitment has been made to publish such data on a fixed schedule.
The initiative remains active, with subsequent purchases expected to proceed through the second quarter of 2026 as the central bank scales toward its annual target. No further purchases have been publicly confirmed beyond the April 17 transaction.
