The export sector has yet again registered remarkable growth, with earnings shooting up by 53.6% in just one year.
A year-on-year evaluation shows that export earnings increased from $812.69 million (sh2.97 trillion) in July 2024 to $1,248.12 million (sh4.55 trillion) in July 2025.
The latest figures, released by the ministry of Finance in the performance of the economy report for August, highlight a positive shift in the external trade position, driven largely by increased earnings from gold, sugar, cement, base metals, and crude oil (from simsim, palm oil and sunflower), alongside traditional strong performers such as coffee, fruits, and vegetables.
Gold exports nearly doubled to $584.18m (sh2.13 trillion) in July 2025, up from $292.06m (sh1.07 trillion) in the same month last year and $477.37m (sh1.74 trillion) in June. Exports of base metals and related products also grew, reaching $25.26m (sh92.20b), compared with $17.65m (sh64.42b) a year earlier and $25.02m (sh91.32b) the previous month.
Coffee, the top agricultural export, continues to anchor this performance, though gold, sugar, and cement have emerged as equally influential contributors to the record-breaking trade numbers.
Coffee exports grow even as prices drop
Export earnings from coffee rose by $40.13m (sh146.5b), representing a 19.1% increase from $210.48m (sh768.3b) in July 2024 to $250.60m (sh914.7b) in July 2025. The improvement was primarily driven by higher export volumes, even though international coffee prices registered a slight slump.
Export volumes increased from 821,593 sixty-kilogram bags in July 2024 to 997,105 bags in July 2025, thanks to a plenteous harvest in key producing regions such as Greater Masaka and Southwestern Uganda.
This increase in supply helped cushion exporters against falling prices, which dropped from $4.27 (sh15,586) per kilogram in July 2024 to $4.19 (sh15,304) per kilogram in July 2025. The global decline in prices was attributed to increased supplies from Vietnam and fresh harvests from Brazil.
Despite the year-on-year growth, month-on-month comparisons tell a different story. Coffee export earnings declined by 13.5% in July 2025, falling from $289.60 million (sh1.06 trillion) in June to $250.60 million (sh914.7 billion) in July. The reduction was largely the result of weaker international prices and a slight drop in export volumes.
Italy maintained its dominance as Uganda’s largest coffee market, absorbing 31.1% of total exports. Other leading destinations included Sudan at 12.5%, Germany at 11.4%, and Algeria at 6.2%. This continued European and regional demand underscores the strategic importance of maintaining quality production and strengthening trade relations with these markets.
Gold, sugar, and cement boost monthly earnings
While coffee remained at the top, it was the performance of gold, sugar, and cement that provided the biggest boost to the July export revenues. Overall export earnings in July 2025 hit $1,248.12m (sh4.55 trillion), reflecting a 7.8% increase from $1,157.51m (sh4.23 trillion) recorded in June 2025.
This monthly growth was largely attributed to higher earnings from gold, sugar, oil re-exports, pulses, crude oil products, and cement. Notably, gold exports continue to play a pivotal role, often accounting for a significant share of trade receipts, while sugar and cement exports point to strong regional demand.
Exports excluding coffee and gold also posted a modest rise, increasing by 5.8% from $390.54m (sh1.43 trillion) to $413.33m (sh1.51 trillion). This signals a marginal yet significant improvement in the performance of other commodities.
Nevertheless, coffee and gold together still account for over 66% of the exports, underscoring the urgent need for diversification.
Experts speak out
Dr. Patricia Kevine Litho, Assistant Commissioner for Communication at the Ministry of Energy, noted, “Previously, much of the gold left the country through informal channels, often unprocessed, making it difficult to monitor. Now, with over 10 refining facilities, gold is processed to 99.9%, increasing transparency and visibility.”
She added that the ministry is also establishing beneficiation centers and mineral markets where miners and buyers can trade under Uganda-controlled prices. Modern geological surveys and technology have further helped identify mineral-rich areas, making exploration more efficient and cost-effective.
Similarly, the cement industry is benefiting from both resource discovery and growing demand. While previously there were just two factories, Hima and Tororo, new factories are now operating, including in Karamoja’s Moroto district,” Litho added.
Henry Musasizi, the Minister of State for General Duties in the Ministry of Finance, noted that the export basket is expanding beyond its traditional commodities. “From the long-standing exports of coffee, tea, and cotton, we have now added 32 new items. These include powdered milk, casein, cement, maize, steel, flowers, fruits and vegetables, cooking oil, beer, and textiles,” he said.
He explained that this is part of the government’s ambitious ‘Tenfold Growth Strategy’, which aims to increase exports by 20% annually.
Musasizi emphasized the ‘50:50:50 principles’ under this strategy, which sets three bold targets: raising exports as a share of GDP from 12% in 2022 to 50%, increasing manufactured goods in merchandise exports from 13% to 50%, and ensuring that at least half of Uganda’s manufactured exports are medium- and high-tech products.
“Our focus is to shift from being a raw commodity exporter to becoming a competitive producer of value-added goods. That is where real growth and resilience lie,” he added.
Odrek Rwabwogo, the Chairperson of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), noted, “We are deliberately working with private sector players and government agencies to build capacity in these areas so that Uganda can export more finished products,” he said.
Rwabwogo cited examples in coffee and fruits, where PACEID is supporting enterprises to improve roasting, packaging, and cold-chain systems. In sugar, cement, and metals, the focus is on modern technology and stronger export market linkages. For oilseeds, the emphasis is on local refining and product diversification.
“We aim to ensure Uganda’s abundant natural and agricultural resources are transformed into higher-value goods that create jobs, widen markets, and bring in more foreign exchange. The recent growth in exports is encouraging, but the bigger goal is for Uganda to be recognized globally for the quality and competitiveness of its finished products,” he said.
Destination of Exports
The Middle East remained the largest export destination in July 2025, taking 40.5% of total exports as the United Arab Emirates dominated, receiving 98.6% of Uganda’s exports to the Middle East.
The East African Community (EAC) ranked second, accounting for 25% of exports, followed by the European Union at 14.7% and Asia at 11.3%. Within the EAC, the Democratic Republic of Congo remained the top buyer, absorbing 30.9% of the exports to the bloc. Kenya followed with 26.6%, while Rwanda accounted for 15.5%, reflecting continued strong regional trade ties.
Merchandise Imports
The merchandise imports grew by 47.3% year-on-year, rising from $1.05b (sh3.83 trillion) in July 2024 to $1.544b (sh5.64 trillion) in July 2025. The increase was mainly driven by higher formal private sector imports of both oil and non-oil goods, alongside a marginal rise in government project imports.
Growth was notable in mineral products (excluding petroleum), machinery, vehicles, petroleum products, and processed food and beverages. Every month, the import bill rose by 8.3% from $1.427b (sh5.21 trillion) in June, reflecting stronger private sector demand for non-oil imports such as machinery, chemicals, plastics, and rubber.
Asia was the largest source, accounting for 35.6% of the total import bill. Within the region, China led at 55.5%, followed by India at 22.0% and Japan at 9.0%. EAC, the rest of Africa, and the European Union contributed 27.0%, 20.3%, and 7.2% of imports, respectively. Within the EAC, Tanzania and Kenya were the dominant suppliers, together accounting for 98.1%.