Overview:
According to the Ministry of Finance, Planning and Economic Development’s June 2025 Performance of the Economy report, Uganda’s export earnings surged to USD 1,198.86 million in May 2025—a significant 36.8 percent increase from USD 876.40 million recorded in May 2024.
In May 2025, Uganda recorded a trade deficit of USD 110.85 million with the global market, signaling a positive shift in the country’s trade dynamics.
This deficit marked a 15.2 percent improvement compared to the same month last year and a 3.3 percent reduction from April 2025, driven largely by robust growth in export earnings that outpaced the rising import bill.
According to the Ministry of Finance, Planning and Economic Development’s June 2025 Performance of the Economy report, Uganda’s export earnings surged to USD 1,198.86 million in May 2025—a significant 36.8 percent increase from USD 876.40 million recorded in May 2024. This growth notably exceeded the 30.1 percent rise in imports, which climbed from USD 1,007.08 million to USD 1,309.71 million over the same period.
Month-on-month analysis between April and May 2025 further underscores this positive trend. Export revenues grew by 6.9 percent, rising from USD 1,120.98 million in April to USD 1,198.86 million in May. Meanwhile, the import bill grew at a slightly lower pace of 6.0 percent, increasing from USD 1,235.65 million to USD 1,309.71 million. This divergence is a hopeful sign for Uganda’s balance of trade and overall economic health.
The Ministry attributes the export growth primarily to increased earnings from key agricultural and mineral commodities. Coffee exports, a flagship Ugandan product, saw a remarkable 91.6 percent increase in earnings compared to May 2024, fueled by higher global prices and increased export volumes. Uganda shipped 793,445 60-kilo bags of coffee in May 2025, earning USD 243.95 million. Cocoa exports also experienced a dramatic boost, with volumes tripling from 3,010 tons to 9,867 tons year-on-year, resulting in export earnings rising to USD 108.58 million, up from USD 22.14 million in May 2024. This surge was driven by favorable global cocoa prices amid production challenges in West Africa and Uganda’s improved domestic output.
Other commodities contributing to export growth included minerals, tea, fish, beans, fruits, and vegetables—all registering positive year-on-year and month-on-month growth.
From a market perspective, the Middle East emerged as Uganda’s largest export destination in May 2025, accounting for 34.4 percent of total merchandise exports. Almost all exports to this region (98.4 percent) were destined for the United Arab Emirates (UAE), underscoring the strategic trade ties between the two countries. The East African Community (EAC) remained a vital regional trading partner, absorbing 25 percent of Uganda’s exports during the month. Notably, 20.4 percent of exports to the EAC were conducted through Informal Cross Border Trade (ICBT), highlighting the importance of both formal and informal trade channels. Additionally, the European Union and Asia accounted for 19.1 percent and 15.5 percent of Uganda’s exports respectively, reflecting diversified global trade partnerships.
Overall, the report signals a strengthening Ugandan economy, with rising export revenues helping to narrow the trade deficit despite increasing import demands. The continued growth of agricultural and mineral exports, alongside expanding regional and international markets, bodes well for Uganda’s trade balance and economic resilience moving forward.