Uganda’s central bank has begun purchasing domestically mined gold as part of a three-year pilot program aimed at strengthening and diversifying its foreign reserves. The move reflects a broader shift among African economies seeking to reduce reliance on traditional reserve assets and hedge against global financial volatility. This strategic shift follows a massive 76% surge in gold exports last year, which hit a staggering $5.8 billion. By buying directly from licensed domestic producers—including artisanal miners—the central bank is not just diversifying away from the US dollar; it is also formalizing a sector long dominated by wildcat diggers. Over time, the policy could bolster Uganda’s economic resilience, though its success will depend on formalizing small-scale mining and ensuring transparent gold sourcing.
Reuters
