The Bank of Uganda has signed a contract with European Gold Refinery to supply gold under its domestic gold procurement programme. The move marks a shift towards local value addition as the central bank continues to strengthen its reserve base. This follows the central bank's decision to directly purchase gold for fiscal purposes, as part of a broader strategy to diversify reserve assets and reduce dependence on foreign exchange amid global market volatility. According to Benard Feni, the director of European Gold Refinery, the contract was obtained through a competitive international bidding process. The domestic gold procurement programme aims to purchase 7 to 10 tonnes of locally mined gold annually. In addition to reserve accumulation, the initiative also aims to regulate the gold trade, curb smuggling, and integrate artisanal and small-scale miners into the formal economy. As part of the launch of the programme, the central bank intends to purchase at least 100 kilograms of gold, worth approximately $160 million (Sh592 billion), between March and June 2026. "If everything goes according to plan, we should be able to complete the procurement of at least 100 kilograms of gold between March and June 2026," said Adam Mugume.
