KAMPALA — The Bank of Uganda (BoU) has signed a deal with Euro Gold Refinery to supply refined gold under its Domestic Gold Purchase Programme, marking a major policy shift towards local value addition as the central bank moves to strengthen its reserves.
The agreement signals a new phase in Uganda’s monetary strategy, with the central bank turning to locally sourced gold to diversify its reserve assets and reduce reliance on foreign currencies amid global economic uncertainty.
Officials say the move will not only boost reserves but also support formalisation of the gold sector, which has long been dominated by informal trade and exports of unrefined minerals.
According to Mr Benard Feni, director of Euro Gold Refinery, the company secured the contract through a competitive international bidding process.
“The central bank made an open call for bids, and we emerged the best among several international companies. We have already signed the contract and received confirmation,” he said.
Under the Domestic Gold Purchase Programme, BoU plans to acquire between seven and 10 tonnes of locally mined gold annually.
The initiative is also aimed at curbing gold smuggling and integrating artisanal and small-scale miners into the formal economy.
As part of the rollout, the central bank is targeting an initial purchase of at least 100 kilogrammes of gold valued at about $160 million (Shs592 billion) between March and June 2026.
Mr Adam Mugume, BoU’s executive director for research and economic analysis, said the programme is on track.
“If all goes as planned, we should be able to purchase at least 100 kilogrammes of gold within that period,” he said.
For Euro Gold Refinery, the deal represents a significant milestone for local industry players in a sector historically dominated by foreign refiners.
Mr Feni said the contract demonstrates growing confidence in Uganda’s domestic industrial capacity.
“This is a big milestone for us as a local company. It shows that Ugandans can compete and deliver at both national and international levels,” he said.
He added that the refinery is committed to ensuring that all gold processed meets internationally accepted standards.
“We pledge to offer the best services and ensure that Uganda’s gold meets global quality benchmarks,” he said.
Uganda’s gold exports have surged in recent years, reaching $5.8 billion (about Shs21.1 trillion). However, much of the sector remains anchored in artisanal and small-scale mining, with limited domestic refining capacity.
The BoU programme is expected to help bridge this gap by creating a steady domestic market for refined gold while promoting value addition within the country.
Euro Gold Refinery has already established partnerships with mining communities as part of efforts to strengthen the supply chain.
The company has signed agreements with artisanal miners in Mubende, benefiting more than 3,000 miners by enabling them to upgrade their gold to internationally acceptable standards.
It has also supported Kakoka artisanal miners in Abim to obtain mining licences and formalise their operations, while expanding its footprint to new areas such as Yumbe District.
“We are helping miners move from selling raw gold to refined products so they can earn better prices on the international market,” Mr Feni said.
The refinery says more than 70 per cent of its workforce comprises Ugandans trained to meet international standards, contributing to skills development and job creation.
Operations are also being extended to other mining areas, including Kaabong, as part of efforts to improve compliance and streamline gold handling across the value chain.
Under the agreement, gold will be sourced from artisanal miners, small-scale operators and licensed dealers across the country before being processed and certified locally.
“We shall receive, process, refine and certify the gold in line with international standards. This contract is a sign of trust in our ability to deliver quality,” Mr Feni said.
Euro Gold Refinery (U) SMC Ltd, launched in Kampala in July 2025, is Uganda’s first fully locally owned gold refinery. The facility aims to refine gold to 99.9 per cent purity while promoting transparency, responsible mining and domestic value addition.
Analysts say the partnership could position Uganda as a regional gold hub if sustained, shifting the country from a raw mineral exporter to a producer of high-quality bullion for the global market.
