Overview:
The ministry noted that the decline in exports was partly caused by non-compliance by some East African Community (EAC) partner states with the common market protocol, affecting regional trade flows.
Uganda’s merchandise trade deficit with the rest of the world widened to USD 272.9 million in June 2025, marking an 11.4 percent increase compared to USD 244.9 million recorded in June 2024, the Ministry of Finance reports.
The widening deficit was driven by a USD 479.9 million increase in imports, which outpaced the USD 451.9 million growth in exports over the same period.
On a month-to-month basis, the trade deficit widened even further, by 138 percent (USD 158.38 million), due to a USD 43.4 million decline in exports coupled with a USD 115.0 million rise in imports in June 2025.
The ministry noted that the decline in exports was partly caused by non-compliance by some East African Community (EAC) partner states with the common market protocol, affecting regional trade flows.
Total merchandise exports in June 2025 were valued at USD 1,154.4 million, up 64.3 percent from USD 702.5 million in June 2024. The growth was largely driven by higher earnings from coffee, minerals, tea, fish, and flowers. Coffee exports, in particular, rose 78.4 percent, reflecting increases in both volumes and global prices.
However, when compared to May 2025, exports fell 3.6 percent, down from USD 1,197.8 million in May to USD 1,154.4 million in June. The decline was attributed to lower export earnings from mineral products, tea, tobacco, maize, cocoa beans, and sugar, compounded by new tariff and non-tariff barriers, including import quotas, imposed by some EAC partner states. These measures affected exports of products such as tiles, fish, dairy and meat products, onions, and potatoes.
Analysts say the figures highlight both the opportunities and challenges in Uganda’s trade landscape, with strong performance in certain sectors offset by regional trade frictions and rising import demand. The ministry emphasized the need for continued engagement with partner states to ensure compliance with EAC protocols and to mitigate barriers that hamper regional trade.