The Minister of State for Affairs, Okello Oryem, has defended the Bank of Uganda’s initiative to begin purchasing gold from local artisanal miners, emphasizing the importance of establishing domestic gold reserves to safeguard Uganda’s financial stability amid shifting global dynamics.
Speaking before the Parliament’s Foreign Affairs Committee during the presentation of the 2025/26 Budget Framework Paper, Minister Oryem revealed that the decision was prompted by increasing threats from unilateral sanctions by the United States and the European Union.
“We are now in the process of studying, and a paper is being developed for the Bank of Uganda to start procuring gold so that we have gold reserves in this country and not only gold reserves abroad. We have about US$4 billion of foreign reserves relative to our GDP, and we stand the risk of the United States imposing sanctions or freezing all that money, which would devastate us as a nation,” Oryem explained.
The Minister noted that the move to bolster local gold reserves was approved by the Cabinet and backed by President Museveni, who directed the Ministry of Finance, through the Ministry of Foreign Affairs, to initiate Uganda’s membership in the BRICS economic bloc. Oryem clarified that joining BRICS was a strategic decision aimed at reducing Uganda’s vulnerability to sanctions that are imposed without UN resolutions.
“The United States and European Union have increasingly imposed unilateral sanctions, expecting other nations to comply or face penalties. These sanctions are often enforced without UN resolutions, which undermines international norms. Uganda cannot simply stand by as the global order changes,” Oryem stated.
During the session, Kyadondo East MP Nkunyingi Muwada questioned the government’s decision-making process regarding BRICS membership and sought clarity on its financial implications.
“Just a few months ago, it was widely reported that Uganda joined BRICS. We need to understand how it was processed, whether it has any financial obligations, and how the country selects its international engagements,” Muwada queried.
In response, Minister Oryem affirmed that Uganda’s BRICS membership carries no immediate financial obligations and was approved by the Cabinet as part of a broader strategy to align with emerging global economic blocs.
“It doesn’t impose financial obligations. The cabinet approved it, and the President directed the necessary steps. I don’t think parliamentary approval was required, as was the case with joining other international organizations,” Oryem explained.
The Minister highlighted the importance of BRICS as a platform for Uganda to align itself with nations advocating for a more balanced global order. “The BRICS organization represents an alternative to the unipolar sanctions regime led by the United States and European Union. Uganda’s participation is essential to safeguard its interests,” he noted.
The decision to establish domestic gold reserves and align with BRICS signals Uganda’s strategic pivot to protect its financial and economic sovereignty in an era of increasing geopolitical tensions.
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