Local firm Euro Gold Refinery wins Central Bank contract to refine Uganda’s gold 

The Bank of Uganda has signed a contract with Euro Gold Refinery to begin supplying gold under its Domestic Gold Purchase Programme

The agreement follows the central bank’s decision to start buying gold directly for treasury purposes as part of a wider strategy to diversify reserve assets and reduce dependence on foreign currencies.

Benard Feni, the director of Euro Gold Refinery, said the company secured the contract after an open and competitive bidding process that attracted both local and international firms.

“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,” Feni said.

Under the programme, the Bank of Uganda plans to buy between seven and 10 tonnes of locally mined gold each year. The initiative is intended to strengthen foreign exchange reserves, tackle gold smuggling and support artisanal and small-scale miners.

As part of the initial phase, the central bank aims to purchase at least 100 kilogrammes of gold worth about $160 million (Shs592 billion) 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, the BoU executive director for research and economic analysis.

Feni described the deal as a major breakthrough for Euro Gold Refinery and for local business in general.

“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 would provide services that meet international standards.

“As Euro Gold, we pledge to offer the best services and ensure that Uganda’s gold meets international standards,” Feni said.

Feni also said the company wants to help position Uganda as a major gold hub on the continent.

“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 (Shs21.1 trillion), although much of the sector is still driven by artisanal and small-scale miners.

To strengthen this value chain, Euro Gold Refinery has partnered with mining communities. Feni said the company signed a memorandum of understanding with gold miners in Mubende, benefiting more than 3,000 artisanal miners by helping them improve their gold to internationally accepted standards.

He added that the refinery also supported Kakoka artisanal miners in Abim to secure a gold mining licence. Those miners now have an agreement to supply gold to Euro Gold Refinery. The company has also recently received a mining licence in Yumbe district, among other developments.

Feni said these efforts have helped improve Uganda’s gold value chain and create jobs, with more than 70 per cent of the refinery’s workforce made up of 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.

The refinery is also expanding into other mining areas, including Kaabong, as part of efforts to improve gold handling and ensure compliance with global standards.

Under its 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 urged Ugandans to have confidence in local enterprise as a driver of national development.

Euro Gold Refinery (U) SMC Ltd was launched in Kampala in July 2025 by Energy and Mineral Development minister Ruth Nankabirwa. It is Uganda’s first fully locally owned gold refinery, marking a significant step in a sector long dominated by foreign firms.

The refinery aims to process gold to 99.9 per cent purity in line with international standards, while promoting responsible mining, increasing domestic value addition and improving transparency in the gold value chain.

At the launch, Nankabirwa described the refinery as a strategic investment in line with Uganda’s Vision 2040, saying such projects would help grow the economy from about $50 billion to $500 billion.