Banking & Finance
Uganda Launches Gold-Buying Plan to Boost Reserves
The initiative is expected to bring artisanal miners into the formal economy. It will also help curb illicit gold exports and increase transparency.
Uganda’s central bank begins gold purchases to build forex reserves, support miners, and formalize trade. A game-changer for the economy.
Uganda Launches Gold-Buying Plan to Boost Reserves and Empower Miners
In a strategic move to strengthen its foreign exchange reserves and formalize its fast-growing gold sector, the Bank of Uganda (BoU) announced on August 7, 2025, that it will commence a long-awaited domestic gold purchase program. The initiative is designed to both diversify the country’s forex portfolio and support small-scale artisanal miners, who currently supply the bulk of Uganda’s gold.
BoU Deputy Governor Dr. Michael Atingi-Ego, while addressing the press in Kampala, said the program will begin this quarter, with the bank buying gold directly from licensed dealers and registered artisanal mining cooperatives.
“Gold accounts for nearly 44% of Uganda’s exports, yet our reserves have little to show for it. This move corrects that imbalance,” said Atingi-Ego. “It will also provide a stable and formal market for thousands of artisanal miners.”
Why Now? The Rise of Gold in Uganda’s Export Basket
According to data from the Uganda Bureau of Statistics (UBOS), gold exports reached $2.25 billion (UGX 8.6 trillion) in 2024, making it the country’s top foreign exchange earner ahead of coffee, fish, and tourism.
Despite this growth, Uganda has struggled to retain value. Most of the gold is refined and traded in the private sector, with minimal integration into the national reserve system. The new policy mandates that a portion of domestically mined gold be sold to the central bank at market rates, bolstering official reserves.
The BoU plans to buy at least two tonnes of gold annually, equivalent to over $150 million (UGX 576 billion) at current market prices.
Artisanal Miners Get a Lifeline
The program is also aimed at formalizing Uganda’s vast artisanal and small-scale gold mining (ASGM) sector, which employs over 250,000 people, according to the Ministry of Energy and Mineral Development. By offering a reliable buyer with fair pricing and eliminating middlemen, the BoU hopes to improve miners’ incomes and compliance with environmental and safety standards.
“This will change our lives,” said Sarah Nakalema, a miner from Mubende district. “Selling to brokers was a gamble. Now we have a real buyer, and our children can go to school.”
Building Forex Resilience
The BoU currently holds foreign exchange reserves of approximately $4.1 billion, sufficient for 4.2 months of import cover, according to its latest monetary policy statement. With Uganda’s import bill rising due to infrastructure projects and global price pressures, increasing gold-backed reserves offers a valuable hedge.
Central banks globally are diversifying into gold. According to the World Gold Council, global central bank gold purchases hit 1,037 tonnes in 2023, the second-highest level on record. Uganda’s move aligns it with peers such as Ghana and Zimbabwe, which have adopted similar strategies in recent years.
Regulatory Safeguards and Transparency
To prevent illicit trade, only certified dealers and cooperatives that meet traceability and environmental standards will be eligible to supply gold to the BoU. The bank has partnered with the Uganda Revenue Authority (URA) and Directorate of Geological Survey and Mines (DGSM) to track gold from pit to vault.
Looking Ahead
Economists say the move could also spur industrial growth if coupled with increased investment in local refining capacity and jewelry manufacturing.
“Uganda can become a regional gold hub—not just for exports, but for value addition,” said Dr. Fred Muhumuza, an economist at Makerere University.
With the launch of this program, Uganda is not only asserting greater control over its most valuable natural resource but also laying the foundation for a more resilient and inclusive economy.
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