The Bank of Uganda (BoU) has signed a contract with Euro Gold Refinery to begin supplying gold under its Domestic Gold Purchase Programme, a move aimed at strengthening the country’s reserves and increasing value addition in the gold sector.
The agreement follows BoU’s decision to start directly purchasing gold for its treasury, part of a broader strategy to diversify reserve assets and reduce dependence on foreign currencies.
According to Benard Feni, the refinery secured the deal 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.
BoU’s Domestic Gold Purchase Programme targets the acquisition of between 7 and 10 tonnes of locally mined gold annually. The initiative is designed to boost foreign exchange reserves, reduce gold smuggling, and support artisanal and small-scale miners.
As part of the initial phase, the central bank plans to procure 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.
Feni described the contract as a major achievement for the refinery and a sign of growing local capacity.
“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.
He added that the company is committed to meeting global standards.
“As Euro Gold, we pledge to offer the best services and ensure that Uganda’s gold meets international standards,” Benard Feni noted.
Feni also outlined the refinery’s long-term vision of positioning Uganda as a leading gold hub on the continent.
“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 exported gold worth $5.8 billion (Shs21.1 trillion), although much of the production still comes from artisanal and small-scale miners.
To strengthen the value chain, Euro Gold Refinery has partnered with mining communities across the country. Feni said the company signed a Memorandum of Understanding with miners in Mubende, benefiting over 3,000 artisanal miners by helping them upgrade their gold to internationally accepted standards.
The refinery has also supported Kakoka artisanal miners in Abim to obtain a mining licence, with agreements in place for gold supply. In addition, the company recently secured a mining licence in Yumbe and is expanding operations to areas such as Kaabong.
Through these initiatives, the refinery has strengthened Uganda’s gold value chain while creating jobs, with more than 70 per cent of its workforce made up of trained Ugandans.
“We are helping miners move from raw gold to refined products so they can fetch better prices on the international market,” he explained.
Under the agreement with BoU, gold will be sourced from artisanal miners, small-scale operators, and licensed dealers nationwide.
“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.
He also urged Ugandans to support local enterprises as drivers of national development.
Euro Gold Refinery (U) SMC Ltd was officially launched in Kampala in July 2025 by Ruth Nankabirwa. It is the country’s first fully locally owned gold refinery, marking a shift in a sector long dominated by foreign players.
The facility is designed to refine gold to 99.9 per cent purity in line with international standards, while promoting responsible mining, increasing local value addition, and improving transparency in the gold trade.
Speaking at the launch, Nankabirwa described the refinery as a strategic investment aligned with Uganda’s Vision 2040, noting that such projects are key to expanding the economy from about $50 billion to $500 billion.
