Uganda’s central bank has started buying gold from local producers as part of a long-anticipated plan to include bullion in the nation’s foreign exchange reserves.
In a statement shared with Reuters, the Bank of Uganda confirmed that its first purchase was completed on Friday, although it did not reveal the volume or value of the gold acquired.
These acquisitions will take place under a three-year pilot scheme aimed at assessing how domestically sourced gold can be incorporated into official reserves.
The central bank explained that the initiative is meant to diversify its reserve portfolio and lessen dependence on conventional assets such as foreign currencies and government bonds. It added that the programme is expected to improve reserve strength and reduce vulnerability to global market fluctuations.
Uganda is following a broader trend among African central banks, including those in Kenya and the Democratic Republic of Congo, which are exploring or adopting gold accumulation strategies to diversify their reserves.
Over recent years, Uganda has developed into an important regional centre for gold refining and trade. Official figures indicate that gold exports reached $5.8 billion last year, marking a 76% increase compared to the previous year. However, much of the country’s output still comes from artisanal and informal mining operations, highlighting the sector’s fragmented nature.
The decision reflects a wider global shift, as central banks reevaluate their reserve structures in response to currency instability and changing commodity markets, with gold widely regarded as a safeguard against inflation and external economic shocks.