Uganda’s central bank will begin purchasing domestically refined gold this month, positioning itself among a growing group of monetary authorities increasing bullion reserves as prices reach historic highs.
The Bank of Uganda said the programme aims to strengthen foreign exchange reserves and reduce exposure to external financial shocks. The move comes as gold prices trade above $5,000 an ounce in early 2026, buoyed by sustained central bank demand and heightened geopolitical tensions.
“If all goes as planned, we should be able to purchase at least 100kg of gold between March and June 2026,” Adam Mugume, a senior official at the central bank, told Reuters, adding that agreements with domestic refineries were being finalised to ensure purity standards through fire assaying and refining.
📢 GET A DETAILED ARTICLES + JOBS
Join ASJ's WhatsApp Channel and never miss a post or opportunity.
Riding a Global Bull Market
Gold has been in a prolonged bull run, rising roughly 80% over the past year. Analysts attribute much of the rally to central banks diversifying reserves away from the U.S. dollar amid inflation concerns and geopolitical instability.
Spot prices recently surged more than 2% in a single session to around $5,395 per ounce as investors sought safe-haven assets following renewed Middle East tensions.
For Uganda, the strategy marks the implementation of plans first outlined two years ago, when policymakers identified domestic gold purchases as a hedge against currency volatility and foreign exchange shortages.
Expanding Domestic Supply
Uganda exported $5.8 billion worth of gold last year, up 76% from 2024, supported by both artisanal miners and expanding industrial capacity.
In 2025, the country commissioned its first large-scale gold mine, a Chinese-owned facility expected to process 5,000 metric tonnes of ore per day and produce approximately 1.2 tonnes of refined gold annually.
The central bank plans to source bullion from artisanal, medium- and large-scale producers. Refining capacity has also expanded since the establishment of Africa Gold Refinery in 2017, with additional processors now handling both domestic output and shipments from neighbouring Democratic Republic of Congo.
Part of a Continental Shift
Uganda joins a broader African trend toward gold accumulation. Countries including Ghana, Zimbabwe and Nigeria have adopted similar strategies, combining reserve diversification with efforts to expand domestic refining.
The approach reflects a recalibration of monetary policy across several African economies seeking buffers against exchange-rate volatility, rising debt servicing costs and global market turbulence.
For Kampala, the immediate objective is modest—100kg over three months—but the signal is clear: in an era of heightened uncertainty, bullion is once again becoming a cornerstone of sovereign financial defence.
Source: Accra Street Journal
Last Updated on March 9, 2026 by Samuel Kwame Boadu
Disclaimer: Some content on Accra Street Journal may be aggregated, summarized, or edited from third-party sources for informational purposes. Images and media are used under fair use or royalty-free licenses. Accra Street Journal is a subsidiary of SamBoad Publishing Hub under SamBoad Business Group Ltd, registered in Ghana since 2014.
For concerns or inquiries, please visit our Privacy Policy or Contact Page.
Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
