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Kampala, Uganda | THE INDEPENDENT | The Bank of Uganda has signed a contract with Euro Gold Refinery to supply gold under its Domestic Gold Purchase Programme, marking a shift toward local value addition as the central bank moves to strengthen its reserve base.
The agreement follows the central bank’s decision to directly purchase gold for treasury purposes, part of a broader strategy to diversify reserve assets and reduce reliance on foreign currencies amid global market volatility.
According to Benard Feni, Director of Euro Gold Refinery, the contract was secured through a competitive international bidding process.
“The central bank made an open call for bids, and Eurogold has won the contract. We have already signed; we were competing with different international companies, where we emerged as the best bidders. We have since received confirmation,” Benard Feni said.
The Domestic Gold Purchase Programme targets the acquisition of between 7 and 10 tonnes of locally mined gold annually. Beyond reserve accumulation, the initiative is also designed to formalise the gold trade, curb smuggling, and integrate artisanal and small-scale miners into the formal economy.
As part of the rollout, the central bank plans to purchase at least 100 kilogrammes of gold valued at about $160 million (Shs592 billion) between March and June 2026.
“If all goes as planned, we should be able to purchase at least 100 kilogrammes of gold between March and June 2026,” said Adam Mugume, Executive Director for Research and Economic Analysis at BoU.
For the refinery, the contract signals growing confidence in local industrial capacity within a sector historically dominated by foreign players.
“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,” he said.
“As Euro Gold, we pledge to offer the best services and ensure that Uganda’s gold meets international standards,” Benard Feni noted.
Feni said the company is positioning itself to play a central role in Uganda’s long-term ambition to move up the mineral value chain.
“By 2030, we want Uganda to be known as a gold hub, not just exporting raw materials, but producing high-quality, 24-karat bullion for the global market,” he said.
Uganda’s gold exports have surged in recent years, reaching $5.8 billion (Shs21.1 trillion), but much of the sector remains anchored in artisanal and small-scale mining, with limited domestic refining.
To bridge this gap, Euro Gold Refinery has entered partnerships with local mining communities.
The company has signed a memorandum of understanding with miners in Mubende, benefiting over 3,000 artisanal miners by enabling them to upgrade their gold to internationally acceptable standards.
It has also supported Kakoka artisanal miners in Abim to obtain a mining licence and formalise supply arrangements, while expanding operations to new areas such as Yumbe district.
“We are helping miners move from raw gold to refined products so they can fetch better prices on the international market,” he explained.
Through these interventions, the refinery says it is contributing to job creation and skills development, with more than 70% of its workforce comprising Ugandans trained to meet international standards.
The company is also extending its footprint to other mining areas, including Kaabong, as part of efforts to streamline gold handling and improve compliance across the value chain.
Under the agreement with the central bank, 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,” Feni said.
Euro Gold Refinery (U) SMC Ltd was launched in Kampala in July 2025 by Energy Minister Ruth Nankabirwa as Uganda’s first fully locally owned gold refinery. The facility aims to refine gold to 99.9% purity while promoting transparency, responsible mining, and domestic value addition.
