By Faith Barbara N Ruhinda Updated at 1758 EAT on Friday 16 May 2025

As Bank of Uganda (BoU) intensifies its gold purchases to boost national reserves, experts are raising red flags about the origin of gold being traded within the country, warning that without strict traceability, the central bank risks being entangled in the illicit minerals trade of the Great Lakes region.

BoU is keen on buying gold directly from refineries,” said Binyina. “But we have warned them that these refineries often source gold from unknown and unverified suppliers. Even the refineries themselves won’t disclose all their sources.”

BoU began purchasing gold from artisanal miners and local refineries in mid-2024 as part of a strategy to diversify Uganda’s reserves.

However, this move has raised eyebrows due to the risk of “commingling”, a practice of mixing verifiable local gold with potentially illicit gold from countries like the Democratic Republic of Congo (DRC) and South Sudan.

Binyina has explained that many refineries rely heavily on Know Your Customer (KYC) checks, which are often insufficient for establishing the true origin of gold.

Currently, Uganda has about six refineries, mostly located in Kampala and Entebbe, that supply processed gold for both local use and export

Despite Uganda’s participation in regional efforts to stem illegal mineral trade such as the International Conference on the Great Lakes Region’s (ICGLR) certification scheme, the country continues to report higher gold export volumes than can be accounted for by its domestic production.

According to a recent statement by Paul Twebaze, a researcher at the Advocates Coalition for Development and Environment (ACODE), Uganda exported significantly more gold in 2023 than it produced locally.

DGSM reported just 15 kilograms of gold production, yet exports are in tonnes. So, where is the extra gold coming from?” asked Twebaze.

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