Uganda to Start Domestic Gold Purchasing Programme to Boost Reserves

West Africa WeeklyMarch 3, 20261 Mins read36

Uganda’s central bank has announced plans to launch a domestic gold buying programme in March, a strategic move designed to strengthen the country’s foreign exchange reserves and cushion the economy against global volatility.

Under the initiative, the Bank of Uganda plans to purchase at least 100 kilograms of gold between March and June 2026. The programme will involve working with contracted refineries to ensure that locally produced gold meets international purity standards before it is added to the country’s reserves.

The move places Uganda alongside several other African nations that have turned to gold accumulation as part of efforts to diversify reserve holdings. Analysts say rising global geopolitical uncertainties and strong gold prices have encouraged central banks to build strategic reserves in the precious metal. Spot gold prices climbed significantly in early 2026 amid market concerns linked to geopolitical tensions, making the metal an attractive alternative asset.

Uganda’s gold exports have surged in recent years, with the country earning close to six billion dollars from shipments in 2025. While most production still comes from small-scale miners, the opening of the first large-scale gold mine in 2025 is expected to contribute significantly to refined output and foreign exchange earnings.

Officials say the domestic gold purchasing programme will not only strengthen reserves but also support the broader mining sector by creating direct links between producers and the central bank.