KAMPALA, September 16, 2025 – Uganda’s export sector posted significant growth in July 2025, with merchandise exports increasing by 53.6 percent compared to the same period last year. This is according to the August 2025 edition of the Performance of the Economy report, released by the Ministry of Finance, Planning and Economic Development [MoFPED].
The value of merchandise exports rose from US$ 812.69 million in July 2024 to US$ 1,248.12mln in July 2025. This strong performance was largely driven by higher earnings from traditional export commodities, including coffee, gold, sugar, base metals, crude oil derivatives such as; simsim, palm oil, and sunflower, and fresh produce such as fruits and vegetables.
Coffee leads the way despite global price dip
According to the report, coffee, Uganda’s leading export crop, registered earnings of US$ 250.60mln, up from US$ 210.48mln the previous year, a year-on-year increase of 19.1 percent. This growth was underpinned by increased export volumes, rising from 821,593 60-kilogramme bags in July 2024 to 997,105 bags in July 2025.
Despite a global drop in coffee prices from US$ 4.27 per kilogramme in July 2024 to US$ 4.19 in July 2025, the increased quantity exported more than offset the price decline. The bumper harvest was attributed to favourable weather conditions in key growing regions, particularly Greater Masaka and Southwestern Uganda.
However, on a month-to-month basis, coffee export earnings declined by 13.5 percent, falling from US$ 289.60mln in June 2025 to US$ 250.60mln in July 2025, largely due to falling prices and reduced export volumes.
Italy remained Uganda’s largest buyer of coffee, accounting for 31.1 percent of total coffee exports in July 2025, followed by Sudan [12.5 percent], Germany [11.4 percent], Algeria [6.2 percent], and Belgium [4.2 percent].
Wider export gains reflect growing diversification
Overall, total monthly export earnings in July 2025 increased by 7.8 percent compared to June 2025, rising from US$ 1,157.51mln to US$ 1,248.12mln. Exports excluding coffee and gold also posted a modest growth of 5.8 percent, increasing from US$ 390.54mln to US$ 413.33mln, indicating a slight but positive trend in diversification.
Nevertheless, coffee and gold continue to dominate Uganda’s export portfolio, collectively contributing over 66 percent of total earnings, a reminder of the urgent need to broaden the country’s export base.
Middle East remains top Export destination
In terms of destination, the Middle East maintained its position as Uganda’s largest export market, taking in 40.5 percent of total exports. The United Arab Emirates alone accounted for 98.6 percent of Uganda’s exports to the region.
The East African Community [EAC] followed as the second-largest export destination, with 25.0 percent of total exports. Within the EAC, the Democratic Republic of Congo led with 30.9 percent of Uganda’s regional exports, followed by Kenya [26.6 percent] and Rwanda [15.5 percent].
The European Union and Asia accounted for 14.7 percent and 11.3 percent of total exports, respectively.
Uganda’s imports rise by 47.3 percent
Uganda’s merchandise imports also saw a sharp increase, rising by 47.3 percent from US$ 1,049.08mln in July 2024 to US$ 1,544.94mln in July 2025.
The surge was primarily attributed to a rise in private sector imports across both oil and non-oil categories, as well as a slight uptick in government project-related imports. Major private sector import categories that recorded growth included mineral products [excluding petroleum], machinery and equipment, vehicles and accessories, petroleum products, processed foods, beverages, and tobacco.
On a monthly basis, Uganda’s import bill increased by 8.3 percent, from US$ 1,427.09mln in June 2025 to US$ 1,544.94mln in July 2025. The increase was largely driven by demand for non-oil formal private sector imports, which more than compensated for the decline in government and oil-related imports.
Asia dominates import sources
Asia remained Uganda’s primary source of imports in July 2025, accounting for 35.6 percent of the total import bill. Within the region, China, India, and Japan were the top suppliers, contributing 55.5 percent, 22.0 percent, and 9.0 percent, respectively, of Uganda’s imports from Asia.
Other notable import sources included the EAC [27.0 percent], the rest of Africa [20.3 percent], and the European Union [7.2 percent]. Within the EAC, Tanzania and Kenya were the dominant suppliers, jointly contributing 98.1 percent of Uganda’s imports from the region.
Trade balance: Surpluses and deficits
In July 2025, Uganda recorded trade surpluses with: Middle East: US$ 415.45mln, and the European Union: US$ 70.90mln
However, trade deficits were registered with: Asia: US$ 408.90mln; Rest of Africa: US$ 233.44mln; EAC: US$ 105.02mln; and Rest of Europe: US$ 15.39mln
The strong year-on-year growth in Uganda’s merchandise exports, particularly in commodities like coffee and gold, reflects positive momentum for the economy, says the report. “However, the country’s continued reliance on a narrow range of exports, coupled with a widening import bill, underscores the need for strategic efforts to diversify exports, promote local manufacturing, and enhance value addition,” concludes the report.
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