Gold lifts Uganda’s exports to $1.4b as EAC trade gap widens

KAMPALA. Uganda’s merchandise export earnings rose 10.1 per cent year-on-year to $1.402 billion (about Shs5.5 trillion) in July, boosted by higher gold receipts and increased shipments of agricultural and industrial products.

The increase, equivalent to $128.28 million (about Shs505.8 billion), compares with the $1.274 billion (about Shs5 trillion) earned in July 2025, according to the Ministry of Finance’s Performance of the Economy Monthly Report for August 2026.

On a monthly basis, merchandise exports increased by 8.9 per cent from $1.287 billion in June.

Gold remained the biggest contributor to the export earnings, with receipts rising 35 per cent year-on-year to $788.45 million in July, from $584.18 million in the same month last year.

The Ministry of Finance attributed the increase to higher export volumes and rising international gold prices, which it said were supported by increased demand for safe-haven assets amid geopolitical tensions.

Other products that recorded strong export performance included maize, flowers, oil re-exports, beer, cocoa beans, cement and electricity.

However, coffee, one of Uganda’s major traditional exports, recorded a decline in annual earnings despite recovering during the month.

Coffee receipts fell 18.2 per cent to $204.94 million in July from $250.60 million in July 2025.

The decline was attributed to lower export volumes and prices. Export volumes fell from 995,211 60kg bags to 846,686 bags, while the average export price dropped from $4.20 per kilogramme to $4.03.

The ministry attributed the lower prices to increased global supply following bumper harvests in Brazil and Vietnam.

Coffee earnings, however, increased 16.8 per cent from $175.47 million in June.

Italy remained the largest destination for Ugandan coffee, taking 29.3 per cent of shipments, followed by Sudan at 15.1 per cent, Germany at 10.7 per cent, Morocco at 5.9 per cent and India at 4.1 per cent.

EAC deficit widens

Despite the increase in overall exports, Uganda’s trade position with its East African Community partners deteriorated sharply.

The country recorded a $436.68 million trade deficit with EAC member states in July, compared with $54.49 million in July 2025.

The Ministry of Finance attributed the widening deficit to an 85.5 per cent increase in imports from the regional bloc, alongside a 9.7 per cent decline in Uganda’s exports to EAC markets.

Uganda recorded trade surpluses with the Democratic Republic of Congo ($120.51 million), South Sudan ($79.74 million) and Rwanda ($25.64 million).

However, it posted sizeable deficits with Kenya ($432.62 million), Burundi ($139.02 million) and Tanzania ($90.93 million).

Uganda imported goods worth $737.46 million from the three countries but exported merchandise worth only $74.89 million, meaning exports covered roughly 10 per cent of the import bill.

The report attributed part of the deficits with Kenya and Tanzania to non-tariff trade barriers.

Imports rise

Meanwhile, Uganda’s total merchandise import bill increased by 25.4 per cent year-on-year to $1.612 billion in July, from $1.285 billion in July 2025.

The increase was mainly driven by higher formal private-sector imports, including vegetable products, animal fats and oils, beverages and petroleum products.

The rise in imports offset a decline in government project-related imports.

Overall, Uganda recorded a merchandise trade deficit of $210.03 million in July, although the gap narrowed from the previous month.