Trending 
African countries have turned to gold to strengthen their economies and reduce their dependence on foreign currencies, while central banks have linked gold refining to reserve management.
In Uganda, foreign exchange reserves have risen rapidly after the country introduced a programme to buy locally refined gold as part of its reserve strategy. The Bank of Uganda said the move is focused on diversifying reserves and supporting local gold production.
Economist Brian Ngule said the trend shows a growing shift across Africa.
“What we are seeing across Africa is a policy shift where gold is no longer treated purely as a trade commodity. It is now being seen as a strategic asset,” he said.
Uganda’s reserves reportedly grew from about $1.5 billion in 2024 to nearly $6 billion in 2025, supported by foreign investment and the new gold purchase programme. Under the initiative launched in April 2026, the central bank buys gold from licensed local producers using local currency at international prices.
Officials say the programme will help reduce raw mineral exports, improve transparency in gold trading, and strengthen local supply chains. The Bank of Uganda also stated that the programme would “support the livelihoods of artisanal and small-scale miners.”
Uganda exported about $5.8 billion worth of gold in 2025, making the precious metal one of the country’s biggest foreign exchange earners.
Across Africa, several countries are making similar moves: the Democratic Republic of the Congo recently opened its first gold refinery, while Mali has begun building a Russian-backed refinery to increase local processing. Rwanda, South Africa, Angola and Guinea are also expanding refining capacity.
Analysts said the shift is being driven partly by global economic uncertainty and concerns over sanctions risks. A survey by the World Gold Council found that many central banks are now increasing gold holdings because gold carries less counterparty risk compared to foreign currencies.
In Nigeria, external reserves recently declined due to debt servicing and foreign exchange interventions, although the central bank said reserve levels remain stable.
Experts believe Africa’s growing investment in gold refining and reserve diversification could help countries retain more value from natural resources and strengthen economic stability.
Bonface Orucho, Bird Story Agency
