Uganda’s external trade posted a mixed picture at the end of the first quarter of this calendar year, registering a smaller trade deficit with the world but a wider one with the East African Community.
Official figures indicate that the trade deficit with the rest of the world narrowed by $183.95 million, or a significant 46.3 percent, from $397.58 million in March last year to $213.63 million in March 2025.
According to the Ministry of Finance, Planning and Economic Development, despite an increase in imports, the growth of the export values was higher.
“This improvement was driven by a strong 40.6 percent growth in export earnings, which more than offset the 7.3 percent increase in the import bill during the month,” the ministry’s Monthly Performance Report for April 2025 shows.
However, on a month-on-month basis, the trade deficit widened by $164.74 million, driven by a 25.4 percent increase in the import bill, which outpaced the 7.3 percent growth in export earnings during the month.
The exports
Merchandise exports grew to $899.10 million in March 2025 from $639.63 million in the same month last year, mainly because of higher export earnings from coffee, cocoa beans, mineral products, sugar and fish and fish products.
Notably, coffee exports more than tripled from $64.74 million in March 2024 to $198.62 million in March this year, driven by the higher international coffee prices and increased export volumes.
Between the two months, global coffee prices rose from $3.27 per kilogram to $5.15, as the dry weather conditions continued to suppress production in Brazil and Vietnam, otherwise the largest producers, which in turn fueled market expectations of tighter global supply.
Consequently, Uganda’s export volumes also increased from 334,556 to 642,981 sixty-kilogram bags, supported by higher yields for both Robusta and Arabica coffee, “partly reflecting the Government’s strategic efforts to boost coffee production.”
There was also a significant increase in the exports of cocoa beans from $39.27 million to $67.42 million, while mineral products earnings increased by 42.4 percent, from $270.42 million to $385.08 million over the same period.
Other significant increases were registered in fish and fish products and sugar. Between February and March this year, merchandise exports grew by 7.3 percent, from $838.18 million to $899.10 million in 2025.
This growth was primarily driven by higher earnings from coffee, mineral products, and maize, among others, led by the 18.5 percent increase in coffee exports.
Italy remained Uganda’s leading coffee export destination during the month, accounting for 38.43 percent of the product’s exports, followed by India with 8.92 percent, Germany with 6.89 percent, and Spain and Sudan with 6.06 and 5.72 percent respectively.
The Middle East remained Uganda’s largest export destination, accounting for 37.1 percent, with almost all (97.5 percent) going to the United Arab Emirates.
The East African Community (EAC) came second taking 20.1 percent of total exports, followed by the European Union with 18.7 percent and Asia, 16.9 percent.
Within the EAC, Democratic Republic of Congo was the largest importer with a share of 43.3 percent, ahead of South Sudan’s 32.3 percent and Kenya at 15.0 percent.
Merchandise Imports
The country’s import bill grew 7.3 percent to $1.112 billion dollars in March 2025 from $1.037 billion in the same month last year, largely due to higher project-related government imports and non-oil private sector imports.
Most growth in imports was from mineral products (excluding petroleum), plastics, rubber and related products; base metals and their products; textiles and textile products, and prepared foodstuffs, beverages, and tobacco.
Similarly, the import bill increased by 25.4 percent on a monthly basis, from USD 887.07 million in February 2025 to USD 1,112.72 million in March 2025.
This increase was mainly driven by the rise in both project-related government imports and non-oil private sector imports, particularly mineral products (excluding petroleum), prepared foodstuffs, beverages & tobacco, plastics, rubber and related products, as well as chemicals & related products.
In March 2025, a third of the imports were from Asia, with China accounting for 55.3 percent of the value of goods from the continent to Uganda, followed by India with 20.5 percent.
The East African Community was the source of 30 percent of Uganda’s imports, with Tanzania being the largest source with 57.9 percent, and Kenya, 38.2 percent of the region’s products going into Uganda.
Globally, the rest of Africa contributed 16.3 percent to Uganda’s total imports, followed by the Middle East, 13.2 percent.
This means, trade surpluses were recorded against the Middle East, with the largest of 186.3 million, and the European Union, with $117.7 million, while Uganda traded with the rest of Europe at a surplus of $0.18 million.
On the other hand, trade deficits were recorded with Asia at 219.51 million, EAC with 152.97 million and Rest of Africa with 146.02 Million Dollars.
