Uganda Central Bank Begins Gold Buying Programme as Global Prices Surge Past $5,000
The Bank of Uganda has announced it will begin purchasing gold from domestic producers this month, becoming the latest central bank to increase its bullion reserves amid surging global gold prices.
The initiative forms part of a broader strategy to strengthen Uganda’s foreign exchange reserves and reduce exposure to global financial volatility, particularly as many central banks diversify away from the United States dollar.
According to Adam Mugume, the central bank plans to purchase at least 100 kilograms of gold between March and June 2026 if the programme proceeds as scheduled.
“We are finalising agreements with gold refineries contracted to carry out fire assaying and refine gold to the required purity levels,” Mugume said.
Gold Prices Surge Globally
The programme comes during a historic rally in gold markets. As of early 2026, prices have surged to over $5,000 per ounce, marking roughly an 80% increase compared with the previous year.
Gold recently climbed further to around $5,395 per ounce, driven by geopolitical tensions in the Middle East and strong demand for safe-haven assets from central banks and institutional investors.
Uganda’s Growing Gold Sector
Uganda has rapidly expanded its gold sector in recent years. The country exported $5.8 billion worth of gold in 2025, a 76% increase from 2024, making the precious metal one of Uganda’s largest export earners.
While artisanal and small-scale miners still dominate domestic production, the country commissioned its first large-scale gold mine in 2025, a Chinese-owned operation designed to process 5,000 tonnes of ore per day and produce about 1.2 tonnes of refined gold annually.
Under the new programme, the central bank intends to purchase gold from artisanal, medium-scale, and large-scale miners, helping formalise the sector and strengthen domestic value chains.
Uganda’s refining capacity has also grown since the establishment of the Africa Gold Refinery in 2017, with additional refineries now processing gold sourced both locally and from neighbouring Democratic Republic of the Congo.
Africa’s Shift Toward Gold Reserves
Uganda’s move reflects a broader trend across Africa, where several central banks are increasingly turning to gold as a strategic hedge against currency volatility, inflation, and foreign exchange shortages.
Countries including Ghana, Zimbabwe, Nigeria, and the Democratic Republic of the Congo are also expanding their gold reserves and strengthening domestic refining industries.
Analysts say these initiatives aim to improve financial stability and reduce vulnerability to global economic shocks, particularly as geopolitical tensions and inflation continue to reshape international financial markets.
