Uganda’s central bank has begun a domestic gold purchase programme aimed at strengthening its foreign exchange reserves and reducing exposure to global financial shocks. The initiative, launched in March 2026 by the Bank of Uganda, marks a strategic shift toward holding physical gold as part of its reserve assets, as reported by Reuters.
Under the programme, the central bank plans to purchase at least 100 kilogrammes of gold between March and June 2026, sourcing the metal from artisanal, medium-scale, and large-scale domestic producers. The gold will be refined to international standards before being added to official reserves, with contracts signed with local refineries to support the process.
Officials say the move is designed to diversify Uganda’s reserve portfolio and provide a buffer against currency volatility, inflation, and external economic shocks. The programme also aligns with a broader global trend, where central banks are increasing gold holdings amid geopolitical uncertainty and rising demand for safe-haven assets.
The initiative is expected to support Uganda’s mining sector by creating a stable domestic market for gold producers while enhancing macroeconomic stability. As gold continues to dominate Uganda’s export earnings, the policy underscores a growing shift among African economies toward leveraging natural resources to strengthen financial resilience and reduce dependence on external markets.
