The Bank of Uganda (BoU) has finalized the signing of contract with Euro Gold Refinery, to commence refining of gold under its Domestic Gold Purchase Programme, marking a significant step in the country’s push to strengthen its reserves and promote 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 after a competitive bidding process open to all eligible refineries.
“The central bank made an open call for bids, and Eurogold has won the contract. We have already signed; we were competing with different international companies, where we emerged as the best bidders. We have since received confirmation,” Benard Feni said.
The Bank of Uganda launched the Domestic Gold Purchase Programme, targeting the acquisition of between 7 and 10 tonnes of locally mined gold annually. The initiative is aimed at strengthening foreign exchange reserves, curbing gold smuggling, and supporting artisanal and small-scale miners.
As part of the rollout, the central bank plans to purchase at least 100 kilogrammes of gold valued at about $160 million (Shs592billion), between March and June 2026.
“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 BoU.
Benard Feni described the contract as a major milestone for the refinery and a testament to the growing capacity of local enterprises.
“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 Euro Gold is committed to delivering high-quality services in line with global standards.
“As Euro Gold, we pledge to offer the best services and ensure that Uganda’s gold meets international standards,” Benard Feni noted.
Benard Feni further revealed the company’s long-term ambition to position Uganda as a leading gold hub in Africa.
“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,” he said.
Uganda exported gold worth $5.8 billion (21.1 trillion,) However, much of the country’s production remains dominated by artisanal and small-scale miners.
To bridge this gap, Euro Gold Refinery has entered into partnerships with local mining communities. Feni noted that the refinery 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.
Euro Gold Refinery also helped Kakoka artisan miners in Abim to attain a gold mining license. The miners also have an MOU to supply gold to Euro Gold Refinery, the company recently received a mining license in Yumbe district, among others.
Through these efforts, Euro Gold refinery has not only boosted Uganda’s gold value chain but also 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 explained.
The company is also expanding its footprint to other mining areas, including Kaabong, as part of broader efforts to streamline gold handling and improve compliance with global standards.
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.
He also called on Ugandans to believe in their capacity to drive national development through local enterprise.
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 that has historically been 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 will play a key role in growing the country’s economy from approximately $50 billion to $500 billion.