Full Breakdown
Uganda's Strategic Move to Retain Gold Revenue
4/10/2026, 8:17:00 PM
Central Agreements to Boost Local Gold Industry
The Bank of Uganda (BoU) has finalized contracts with EuroGold Refinery Ltd and Feldstein Trading Limited as part of its Domestic Gold Purchase Programme. This initiative aims to retain more value within Uganda's gold industry by purchasing refined gold locally rather than relying on raw gold exports. The BoU plans to acquire 100 kilograms of gold, valued at approximately $160 million, from these local refineries, marking a significant step toward enhancing the domestic gold sector and reducing dependence on foreign markets.
Objectives of the Domestic Gold Purchase Programme
The primary goals of the Domestic Gold Purchase Programme include strengthening Uganda's foreign exchange reserves, combating gold smuggling, and supporting artisanal and small-scale miners. The BoU intends to purchase between seven and ten tonnes of locally mined gold annually, with an initial target of 100 kilograms between March and June 2026. This strategy is expected to bolster the national economy, as gold exports accounted for 37% of Uganda's total export revenue in 2024, generating $3.4 billion.
Role of Local Refineries
EuroGold Refinery, Uganda's first fully Ugandan-owned gold refinery, has been pivotal in formalizing the gold sector and collaborating with small-scale miners. The company has signed agreements with mining communities, benefiting over 3,000 artisanal miners by helping them improve their gold to meet international standards. Benard Feni, the director of EuroGold Refinery, emphasized the significance of this contract, stating that it demonstrates the capability of Ugandan enterprises to compete on both national and international levels.
Economic Implications
The surge in gold export earnings has been a critical driver of Uganda's economic growth, with projections indicating that GDP growth may exceed 10% in the 2025/2026 fiscal year. The BoU's initiative is expected to enhance local production, create jobs, and support infrastructure development. By retaining more economic value within the country, the programme aims to position Uganda as a significant player in Africa's gold market.
Criticism and Challenges
Despite the positive outlook, challenges remain. The artisanal and small-scale mining sector, while crucial for employment, is largely informal and unregulated. This lack of oversight has led to issues with smuggling, particularly given Uganda's proximity to conflict-affected regions like the Democratic Republic of Congo and South Sudan. Critics argue that without proper regulation, the benefits of the Domestic Gold Purchase Programme may not fully materialize.
Official Statements
Governor Michael Atingi-Ego of the BoU stated, “These are the two gold refineries that have been licensed by BoU. We have signed contracts with them. So, they will be the ones that will be refining the gold that we will be buying.” He emphasized the importance of ensuring that the gold meets purity standards and is sourced locally.
Verbatim Quotes
- “We are very happy. This is a big milestone for us as a local company to be selected to refine gold for the central bank. It demonstrates that Ugandans can compete and deliver at both national and international levels,” — Benard Feni, Director of EuroGold Refinery
- “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,” — Benard Feni, Director of EuroGold Refinery
The Domestic Gold Purchase Programme represents a strategic shift in Uganda's approach to its gold industry, aiming to enhance local value addition and economic resilience while addressing the challenges posed by an informal mining sector.
