Higher machinery, fuel imports drive Uganda’s import bill

Uganda’s merchandise import bill rose by 12.5 percent in May compared to the same period last year, driven by increased purchases of machinery, vehicles, petroleum products and gold, underscoring continued demand for investment and industrial inputs despite a slight monthly slowdown.

The latest Performance of the Economy Report for June 2026 released by the Ministry of Finance shows that the country’s merchandise imports increased to $1.46 billion (about Shs5.3 trillion) in May 2026 from $1.30 billion recorded in May 2025.

The increase was largely attributed to higher private sector imports, with businesses bringing in more machinery and equipment, motor vehicles, petroleum products, plastics, rubber products and gold.

The report suggests that the higher imports reflect sustained economic activity and continued investment in productive sectors that rely on imported capital equipment and industrial raw materials.

Over the first 11 months of the 2025/26 financial year, Uganda’s import bill reached $15.92 billion, representing a 20.4 percent increase from $13.23 billion recorded during the corresponding period of the previous financial year.

According to the Finance Ministry, the rise was driven by increases in both the volume and prices of imported goods.

However, on a month-on-month basis, the import bill declined by 3.2 percent, falling from $1.51 billion in April to $1.46 billion in May.

The ministry attributed the decline mainly to reduced formal private sector imports, particularly gold, machinery and equipment, base metals and motor vehicles, whose import volumes and values all fell during the month.

The easing in imports, however, was not enough to offset the broader upward trend seen over the financial year, with businesses continuing to import large volumes of capital goods and industrial inputs.

The higher import bill, coupled with softer export earnings during May, contributed to a widening of Uganda’s merchandise trade deficit, which increased to $115.7 million during the month.

The latest trade figures indicate that while investment-related imports remain strong, sustaining export growth will be critical to narrowing the country’s external trade gap and supporting foreign exchange earnings.