Packaging produce for export
HABARI DAILY I Kampala, Uganda I Uganda earned approximately US$1.35 billion (about Shs4.99 trillion) from merchandise exports during May 2026, according to the Ministry of Finance’s June 2026 Performance of the Economy Report.
The report, which highlights the country’s continued strong performance in international trade despite declining coffee earnings, shows that merchandise exports generated US$1.346 billion in May 2026, representing a 12.8 percent increase from US$1.193 billion recorded in May 2025.
However, export receipts declined by 4.2 percent compared to April 2026, mainly because of reduced earnings from coffee and gold exports during the month.
Gold boom
The impressive annual growth was largely driven by booming gold exports, which more than compensated for weaker coffee earnings.
Gold remained Uganda’s biggest foreign exchange earner, bringing in US$814.78 million, up from US$485.83 million in the corresponding month of 2025, representing an increase of 67.7 percent. The Ministry attributes the surge to both higher export volumes and rising global gold prices.
Coffee, traditionally Uganda’s leading export, experienced a sharp downturn. Export earnings fell from US$243.95 million in May 2025 to US$151.70 million in May 2026, a decline of 37.8 percent. The report attributes the fall to lower export volumes and declining international coffee prices following increased harvests from other major coffee-producing countries that saturated the global market.
Coffee export volumes also dropped from 793,445 to 617,491 60-kilogram bags, while average prices declined from US$5.12 per kilogram to US$4.09.
Other export commodities posted mixed results. Tobacco exports increased dramatically by 266.9 percent to US$8.15 million, while cotton exports rose nearly twenty-fold to US$3.71 million. Beans, flowers and tea also registered improvements compared to the previous month, although fish products and simsim recorded declines. Informal Cross Border Trade (ICBT) exports contributed US$69.76 million to Uganda’s export earnings.
Middle East tops exporters
The report also reveals that Uganda’s export markets continue to be dominated by the Middle East, which accounted for 49.4 percent of all export earnings during the month.
The United Arab Emirates (UAE) remained the single largest destination within the region, reflecting its growing importance as a market for Uganda’s gold and other exports.
The East African Community (EAC) ranked as Uganda’s second-largest export destination, absorbing 21.1 percent of total exports valued at US$284.32 million. Nearly a quarter (24.5 percent) of exports to the EAC were conducted through Informal Cross Border Trade, consisting mainly of agricultural commodities and manufactured goods.
Asia was Uganda’s third-largest export market, taking 15.8 percent of exports, followed by the European Union, which accounted for 8.2 percent.
The rest of Africa absorbed 3.7 percent of Uganda’s exports, while the Americas, the rest of Europe and other countries collectively accounted for less than three percent.
Trade deficit persists
Although exports performed strongly on an annual basis, Uganda continued to import more than it exported.
The country’s import bill stood at US$1.462 billion, leaving a merchandise trade deficit of US$115.69 million, wider than the US$104.15 million deficit recorded in April 2026. The increase in the deficit was mainly attributed to a larger decline in export earnings relative to imports during the month.
Regionally, Uganda enjoyed its biggest trade surplus with the Middle East, amounting to US$582.9 million, followed by the Rest of Africa, where it registered a surplus of US$24.37 million.
However, the country recorded sizeable trade deficits with the East African Community (US$376.87 million), Asia (US$307.19 million) and the European Union (US$25 million), highlighting Uganda’s continued dependence on imported goods from these regions.
Despite the monthly decline, Uganda’s export sector maintained a strong trajectory over the financial year. Cumulative merchandise export earnings for the period July 2025 to May 2026 reached US$14.47 billion, representing a 34.4 percent increase compared to US$10.76 billion earned during the corresponding period of the previous financial year, underpinned largely by robust performances in gold and coffee exports.
About the Author
