Uganda’s central bank has moved to reshape the country’s gold sector by signing $160 million worth of contracts with local suppliers to start buying domestically refined gold.
- The Bank of Uganda has signed $160 million in contracts with local suppliers to purchase domestically refined gold.
- Agreements were made with EuroGold Refinery Ltd and Feldstein Trading Limited to boost value retention in Uganda’s gold sector.
- The central bank will initially buy 100 kilograms of gold, aiming to promote local refining over exporting raw materials.
- This initiative is part of a broader program to encourage value addition, improve transparency, and strengthen local supply chains.
The Bank of Uganda (BoU) finalised agreements with EuroGold Refinery Ltd and Feldstein Trading Limited, marking a major step toward retaining more value within the country’s gold industry and reducing reliance on re‑exports to foreign markets.
The Monitor reports that under the deal, the BoU plans to begin purchases with 100 kilograms of gold valued at roughly $160 million (about Shs592 billion), which it will acquire from companies that refine gold within Uganda rather than sending raw materials abroad.
This is part of a broader Domestic Gold Purchase Programme aimed at promoting value addition, enhancing transparency, and supporting local refineries.
Strengthening Uganda’s local gold industry
EuroGold, based in Kampala and regarded as the first fully Ugandan‑owned gold refinery, has been involved in efforts to formalise the sector and work with small‑scale miners, helping refine their gold to international purity standards.
Feldstein Trading, also contracted to supply gold, joins the initiative as part of the push to strengthen local supply chains and ensure consistent, high-quality domestic production.
The move comes as Uganda’s gold export earnings reach record levels, with the commodity contributing billions to the country’s export receipts in recent years. Historically, much of this value has flowed out through the export of unprocessed gold.
Gold exports accounted for 37% of Uganda’s total export revenue in 2024, generating $3.4 billion, while early 2025 data points to even stronger growth, with $1.91 billion recorded in the first five months alone.
This surge in earnings is supporting infrastructure development, job creation, and broader economic expansion, with GDP growth projected to exceed 10% in the 2025/2026 fiscal year, driven in part by global gold prices hovering around $3,300 per ounce.
For investors, Uganda presents a compelling opportunity within Africa’s emerging gold belt, combining largely untapped reserves with a gradually improving regulatory and governance framework.
By buying refined gold from domestic players, the BoU hopes to keep more of the economic value in Uganda, boosting the national economy and supporting local businesses.
Uganda’s strategy mirrors a wider trend across Africa, where countries are increasingly nationalising value chains in core minerals insisting on local processing and refining to maximise jobs, revenue, and economic resilience.
