The Bank of Uganda has officially launched a domestic gold purchase program by signing a $160 million contract with local gold refineries. This strategic move marks the end of the era in which the country exported raw minerals, aiming instead to retain the economic benefits within its own borders.
The central bank finalized the agreement with EuroGold Refinery Ltd, the first company fully owned by Ugandans, and **Feldstein Trading Limited**. According to the contract, the central bank will begin purchasing 100 kilograms of gold refined to internationally accepted quality standards.
By purchasing domestically refined gold rather than exporting raw ore, Uganda is transforming its mining sector into an industry, ensuring that profits from smelting and refining remain in Kampala instead of flowing to Dubai or Switzerland.
Uganda’s strategic step is not an isolated event; rather, it is part of a movement being seen across the entire African continent. From Zimbabwe’s ban on raw lithium exports to Ghana’s efforts in local gold processing, African leaders are rejecting the “extract and export” trade model that was common in the 20th century.
Historically, African countries have been victims of the “resource curse,” where high-value minerals were exported at low prices, only for finished products to be bought back later at high costs.
By mandating domestic refining, Uganda is now protecting the benefits of value-addition; this creates significant job opportunities, accelerates technology transfer, and builds a strong domestic supply chain.
The timing of this program’s launch is highly strategic. At a time when the international price of an ounce of gold is around $3,300, the mineral has become the primary foundation for Uganda’s financial stability. In 2024, gold accounted for 37% of the country’s total export earnings, generating $3.4 billion. Data from 2025 indicates that this growth will increase further, with nearly $2 billion in revenue recorded in the first five months alone.
By integrating local refineries with the central bank’s reserve strategy, Uganda is building a “Gold Buffer” beyond just selling a product. This reserve helps prevent currency fluctuations and strengthens the Ugandan Shilling.
Experts predict that this work, focused on value-addition, will help Uganda’s Gross Domestic Product (GDP) growth exceed 10% in the 2025/2026 fiscal year.
