Bank of Uganda Signs Shs592 Billion Gold Supply Deal Under Domestic Purchase Programme

Kampala April 9, 2026 - The Bank of Uganda (BoU) has signed a contract worth $160 million (approximately Shs592 billion) with two local companies, including Euro Gold Refinery, to begin supplying gold under its Domestic Gold Purchase Programme. The agreement marks a key step in Uganda’s strategy to strengthen national reserves, curb gold smuggling, and promote value addition in the mineral sector through direct central bank purchases. The contract follows BoU’s decision to procure gold for treasury purposes as part of efforts to diversify reserve assets and reduce dependence on foreign currencies. According to Benard Feni, the contract was awarded after a competitive bidding process involving multiple local and international bidders. “The central bank made an open call for bids, and Euro Gold emerged the best bidder among several international companies. We have signed the contract and received confirmation,” Feni said. The Bank of Uganda’s Domestic Gold Purchase Programme targets the acquisition of between seven and ten tonnes of locally mined gold annually. The initiative is designed to strengthen foreign exchange reserves and support artisanal and small-scale miners. BoU Executive Director for Research and Economic Analysis Adam Mugume confirmed that the institution plans to purchase at least 100 kilogrammes of gold between March and June 2026. “If all goes as planned, we should be able to purchase at least 100 kilogrammes of gold between March and June 2026,” Mugume said. Uganda exported gold worth $5.8 billion in 2025, though much of the production remains driven by artisanal and small-scale mining operations. Euro Gold Refinery, Uganda’s first fully locally owned refinery, has positioned itself as a key player in formalizing the sector. Launched in July 2025 by Energy and Mineral Development Minister Ruth Nankabirwa, the refinery processes gold to 99.9% purity and aims to align Uganda’s output with international standards. Feni said the refinery is working with mining communities in Mubende, Abim, and Yumbe to improve production standards and expand access to formal markets. These partnerships reportedly benefit thousands of artisanal miners and aim to strengthen traceability in the gold value chain. “We are helping miners move from raw gold to refined products so they can fetch better prices on the international market,” he said. The refinery has also expanded its workforce, with more than 70% of employees being Ugandan nationals trained in modern refining standards. Feni added that the company’s long-term ambition is to position Uganda as a continental gold hub. “By 2030, we want Uganda to be recognised as a gold hub-not just exporting raw materials, but producing high-quality, 24-karat bullion for the global market,” he said. The Bank of Uganda said gold purchased under the programme will be sourced from artisanal miners, licensed dealers, and small-scale operators across the country, before being refined and certified for reserve use. Officials say the initiative is expected to enhance transparency in the gold sector, reduce illicit trade, and increase domestic value addition in Uganda’s mining industry.