The Bank of Uganda (BoU) has signed a contract with Euro Gold Refinery to commence supply of refined gold under the Domestic Gold Purchase Programme, a move aimed at strengthening the country’s reserves and promoting value addition. The development follows the central bank’s decision to directly purchase gold for treasury purposes as part of efforts to diversify reserve assets and reduce reliance on foreign currencies. According to Benard Feni, director of Euro Gold Refinery, the contract was awarded following a competitive bidding process open to eligible refineries. “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,” Feni said. BoU launched the Domestic Gold Purchase Programme targeting the acquisition of between seven and 10 tonnes of locally mined gold annually. The initiative is intended 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 between March and June 2026, valued at about $160 million (Shs 592 billion). “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, BoU executive director for research and economic analysis. Feni described the contract as a major milestone for the refinery and a boost for local participation in the gold value chain. “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 refinery aims to position Uganda as a regional gold hub. “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,” Feni said. Uganda exported gold worth $5.8 billion (Shs 21.1 trillion) last year, although the sector remains largely dominated by artisanal and small-scale miners. To strengthen the value chain, Euro Gold Refinery has partnered with local mining communities. Feni said the company has signed a memorandum of understanding with Mubende miners, benefiting more than 3,000 artisanal miners by enabling them to upgrade gold to internationally acceptable standards. The refinery has also supported Kakoka artisanal miners in Abim to obtain a mining licence and signed agreements to supply gold. The company recently secured a mining licence in Yumbe district and is expanding to other mining areas, including Kaabong. Feni said the refinery’s operations have created employment opportunities, with more than 70 per cent of its workforce comprising 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,” he said. Under the arrangement with the central bank, gold will be sourced from artisanal miners, small-scale miners and licensed dealers across the country. “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. Euro Gold Refinery (U) SMC Ltd, Uganda’s first fully locally owned gold refinery, was launched in Kampala in July 2025 by the minister of Energy and Mineral Development, Ruth Nankabirwa.The post Euro Gold to refine gold for Bank of Uganda appeared first on The Observer.