Uganda’s trade deficit with East African Community narrows

Uganda’s trade deficit with East African Community (EAC) partner states eased in April 2025, according to the latest Performance of the Economy report released by the Ministry of Finance.

The country recorded a trade deficit of USD 127.05 million with the region, down from USD 152.97 million registered in March 2025.

The improvement in the trade balance was primarily driven by a significant surge in exports to the EAC, which rose by nearly 50 percent to USD 270.40 million in April, compared to USD 180.78 million the previous month. This growth outpaced the increase in imports from the region, which also rose by 19.1 percent to USD 397.46 million from USD 333.75 million in March.

Breaking down the trade flows by partner countries, Uganda maintained a trade surplus with several EAC members including the Democratic Republic of Congo (DRC), South Sudan, Rwanda, and Burundi. The surpluses stood at USD 76.80 million with the DRC, USD 55.71 million with South Sudan, USD 35.45 million with Rwanda, and USD 5.44 million with Burundi.

However, Uganda continued to experience sizeable trade deficits with Tanzania and Kenya, the region’s largest economies, posting shortfalls of USD 231.91 million and USD 68.54 million respectively during the month.

Despite the month-on-month improvement, Uganda’s annual trade deficit with the EAC widened compared to April 2024. The deficit grew from USD 53.43 million a year earlier to USD 127.05 million in April 2025. This deterioration reflects a 52 percent increase in imports from the EAC—rising from USD 261.48 million to USD 397.46 million—outpacing the 30 percent growth in exports, which increased from USD 208.05 million to USD 270.40 million over the same period.

The Ministry of Finance highlighted the continued integration of Uganda’s economy within the EAC region but underscored the need for enhanced export diversification and competitiveness to balance trade dynamics and reduce reliance on imports.