Africa-Press – Uganda. The Bank of Uganda (BoU) has signed a contract with two local companies including Euro Gold Refinery to commence the supply of gold under its Domestic Gold Purchase Programme.
The contract is worth $160 million ( approximately Shs592billion).
The development marks a significant step in the country’s efforts to strengthen its reserves and promote value addition in the mineral sector.
It follows the central bank’s decision to directly purchase gold for treasury purposes, as part of a broader strategy to diversify reserve assets and reduce reliance on foreign currencies.
According to Benard Feni, Director of Euro Gold Refinery, the contract was awarded after a competitive bidding process open to all eligible refineries.
“The central bank made an open call for bids, and Euro Gold emerged the best bidder among several international companies. We have signed the contract and received confirmation,” Feni said.
The Bank of Uganda launched the Domestic Gold Purchase Programme targeting the acquisition of between seven and ten tonnes of locally mined gold annually. The initiative aims to strengthen foreign exchange reserves, curb gold smuggling, and support artisanal and small-scale miners.
As part of the rollout, the central bank plans to purchase at least 100 kilogrammes of gold valued at $160 million (Shs592billion)between March and June 2026.
Adam Mugume, Executive Director for Research and Economic Analysis at BoU, confirmed the plan:
“If all goes as planned, we should be able to purchase at least 100 kilogrammes of gold between March and June 2026.”
Feni described the contract as a major milestone for the refinery and a testament to the growing capacity of local enterprises.
“This is a big achievement 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 Euro Gold Refinery is committed to delivering high-quality services in line with global standards.
“We pledge to ensure that Uganda’s gold meets international standards,” Feni noted.
Feni also revealed the company’s long-term ambition to position Uganda as a leading gold hub in Africa.
“By 2030, we want Uganda to be recognised 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 (21.1 trillion,) in 2025. However, much of the country’s production remains dominated by artisanal and small-scale miners.
To address this, Euro Gold Refinery has partnered with local mining communities. The company has signed a Memorandum of Understanding with Mubende gold miners, benefiting over 3,000 artisanal miners by enabling them to upgrade their gold to internationally acceptable standards.
The refinery has also supported Kakoka artisanal miners in Abim to obtain a gold mining licence. These miners now have an agreement to supply gold to Euro Gold Refinery. Additionally, the company recently secured a mining licence in Yumbe District.
Through these initiatives, Euro Gold Refinery has strengthened Uganda’s gold value chain while creating employment opportunities. More than 70 per cent of its workforce comprises Ugandans trained to meet international standards.
“We are helping miners move from raw gold to refined products so they can fetch better prices on the international market,” Feni explained.
The company is also expanding operations to other mining areas, including Kaabong, as part of efforts to streamline gold handling and improve compliance with global standards.
Under the agreement with the central bank, gold will be sourced from artisanal miners, small-scale miners, and licensed dealers across the country.
“We will receive, process, refine, and certify the gold in line with international standards. This contract reflects the trust placed in our ability to deliver quality,” Feni added.
Euro Gold Refinery (U) SMC Ltd was officially launched in Kampala in July 2025 by the Minister of Energy and Mineral Development, Ruth Nankabirwa. It is Uganda’s first fully locally owned gold refinery, marking a milestone in a sector historically dominated by foreign players.
The refinery aims to process gold to 99.9 per cent purity in line with international benchmarks, while promoting responsible mining, increasing domestic value addition, and enhancing transparency in the gold value chain.
Speaking at the launch, Nankabirwa described the refinery as a strategic investment aligned with Uganda’s Vision 2040, noting that such initiatives are critical to growing the economy from approximately $50 billion to $500 billion.
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