BOU reiterates plans to purchase gold

KAMPALA - The Bank of Uganda (BOU) has reaffirmed its plans to start purchasing gold in an effort to strengthen the country’s reserves, deputy governor Prof. Augustus Nuwagaba, has said. 

Nuwagaba made the remarks during the Musevenomics conference at Mestil Hotel in Kampala on Thursday, May 29, 2025. 

Musevenomics is a comprehensive and adaptive approach to economic management implemented by various government agencies, aimed at revitalising the economy following the decline experienced during previous regimes before the National Resistance Movement (NRM).

“We are also going to start buying gold for the benefit of those in business, and we are ready,” he said.

The initiative aims to achieve two objectives: To formalise the operations of gold miners in regions such as Karamoja, Kassanda and Busia, and to maintain the country’s reserves, he said.

Earlier this year, the State Minister for Foreign Affairs Okello Oryem announced that the Government had begun a process to store part of the country’s gold reserves in local vaults.

“We are currently studying and developing a proposal for the Bank of Uganda to start procuring gold so that we can have gold reserves in this country rather than relying solely on reserves abroad,” he said, noting that Uganda had $4 million worth of foreign reserves in relation to the country’s GDP. 

According to Okello, this move serves as a precautionary measure to protect the nation in case sanctions are imposed, which could freeze the country’s dollar reserves.

Recently, governor Michael Atingi-Ego informed Parliament about the importance of gold as a stable asset, stating, “Gold’s liquidity, safety, and historical performance as a store of value make it a vital reserve asset. By diversifying Uganda’s reserves, we enhance financial resilience.”

During his State of the Nation address in June 2023, President Yoweri Museveni announced the discovery of up to 31 million metric tonnes of gold, with an estimated 320,000 metric tonnes of extractable pure gold valued at $12.8 trillion. 

The President mentioned that officials from the energy ministry had informed Cabinet about these substantial gold deposits found in various parts of the country, adding that Uganda could generate approximately $700 million in royalties.