Overview:
Economists noted that while a shrinking deficit can strengthen the domestic currency by reducing demand for foreign exchange, the concentration of exports in two commodities highlights a continued need for economic diversification.
KAMPALA, Uganda — Uganda’s merchandise trade deficit improved by 70.4% in October 2025 as a surge in exports outpaced rising imports, according to the Ministry of Finance.
The trade gap narrowed to $74.46 million from $251.56 million in October 2024. Total exports nearly doubled during the period, rising 94.4% to $1.49 billion compared to $769.62 million a year earlier.
Ministry officials attributed the growth to increased earnings from coffee, gold, cocoa beans and industrial products. Coffee exports remained a primary driver, with earnings rising to $185.1 million from $139.05 million. This 33.1% increase was fueled by higher production volumes in the central and eastern regions, which offset a decline in global prices.
Export volumes for coffee reached 680,000 60-kilogram bags, up from 500,000 bags the previous year. Italy and Germany were the top destinations for Ugandan coffee in October.
While exports surged, the country also saw a 53.8% increase in merchandise imports, which grew to $1.57 billion from $1.02 billion in October 2024.
Despite the improving trade balance, gold and coffee still represent 76.8% of Uganda’s total exports. Economists noted that while a shrinking deficit can strengthen the domestic currency by reducing demand for foreign exchange, the concentration of exports in two commodities highlights a continued need for economic diversification.