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The Ugandan government is making a determined push to capture more value from its gold sector, with the Bank of Uganda signing a contract with Euro Gold Refinery to supply refined gold under a domestic purchase programme designed to strengthen foreign exchange reserves, curb smuggling and lift the earnings of artisanal miners.
Awarded following a competitive bidding process open to eligible refineries, the contract reflects a transparent and merit-based selection. “The central bank made an open call for bids and Euro Gold has won the contract. We were competing with different international companies and emerged as the best bidders. We have already signed and received confirmation,” said Benard Feni, Director of Euro Gold.
The Bank of Uganda’s Domestic Gold Purchase Programme targets the acquisition of between seven and ten tonnes of locally mined gold annually, with an initial purchase of at least 100 kilogrammes planned between March and June 2026 which is valued at approximately $160 million. “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 Bank of Uganda.
For Euro Gold, Uganda’s first fully locally owned gold refinery, launched in July 2025, the contract is both a commercial milestone and a statement of intent. “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,” said Feni. He has set an ambitious horizon for the refinery’s impact,”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.”
The commercial logic is urgent. Uganda exported gold worth $5.8 billion last year yet the sector remains dominated by artisanal and small-scale miners, with smuggling siphoning significant value out of the formal economy. Euro Gold has moved to embed itself in mining communities as part of its supply chain, signing an MOU with Mubende miners to benefit more than 3,000 artisanal operators, supporting Kakoka artisanal miners in Abim to secure a mining licence and securing its own licence in Yumbe district. More than 70% of the refinery’s workforce are Ugandans trained to meet international standards.
