The Bank of Uganda's domestic gold purchase programme, launched in April 2026, has moved past its first test cycle. Purchases are made from licensed and pre-qualified miners, settled in Uganda shillings against international pricing benchmarks, with metal delivered to approved refineries for assaying.
Why a central bank buys locally
The reserves argument is straightforward: gold bought at home diversifies holdings without spending foreign currency. The second argument matters more for the sector. A guaranteed, documented buyer at benchmark pricing gives small and medium producers a reason to stay inside the licensing system rather than sell into the informal chain, where discounts of 10 to 20 per cent are common.
The pre-qualification bottleneck
Pre-qualification is where the policy will succeed or fail. Miners must hold a valid licence, show provenance and meet assay standards. Producers operating on association permits in Buhweju and Mubende report that the paperwork burden falls hardest on exactly the groups the programme was designed to pull into the formal sector.
What to watch
Three indicators will show whether this is working: the number of distinct sellers, not just tonnage; the share of purchases sourced from districts outside Busia and Karamoja; and whether refinery assay results are published in aggregate. Without the third, the programme cannot demonstrate that it is buying Ugandan production rather than re-exported regional metal.