Uganda's merchandise exports registered a sharp increase in 2025, earning the country $13.43 billion (Shs50.49 trillion), up from $8.67 billion (Shs32.57 trillion) in 2024, according to new data released by the Bank of Uganda.
The nearly 55% growth marks one of the strongest annual export performances in recent history, underscoring renewed momentum in commodity trade, stronger regional market penetration and improved foreign exchange inflows.
The surge was largely driven by robust performance in gold and coffee, which together accounted for more than two-thirds of total export receipts.
Gold maintained its position as Uganda's leading export commodity, generating $6.40 billion (Shs24.06 trillion).
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Coffee followed at $2.46 billion (Shs9.25 trillion), reaffirming its strategic importance to Uganda's export diversification and agro-industrialisation strategy.
Other notable contributors included cocoa beans, which earned $632 million (Shs2.38 trillion), and electricity exports, which brought in $68.98 million (Shs259.2 billion).
The broad-based improvement reflects favourable global commodity prices, higher export volumes and strengthened regional trade flows.
Market diversification also improved during the year. The Middle East retained its position as Uganda's primary export destination for the 12th consecutive month, accounting for 48.5% of total export market share.
In December 2025 alone, exports to the region more than doubled to $676.59 million (Shs 2.54 trillion), compared to the same month in 2024.
The East African Community absorbed 20% of exports, while Asia accounted for 15.7%, signalling expanding geographic reach.
Despite the strong headline growth, policymakers and analysts caution that the depth and domestic retention of export earnings remain critical to long-term economic transformation.
Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development, emphasised that export success should not only be measured by gross earnings but also by value addition within Uganda's economy.
While Uganda hosts seven gold refineries, officials note that a significant share of exported gold originates from neighbouring countries, limiting domestic beneficiation and reducing backward linkages to the local mining ecosystem.
"The discussion should not be about quantities," Rwabwogo said. "It should be about how much value you add at household level."
His remarks reflect a broader policy shift towards strengthening industrial value chains, agro-processing capacity and local content development to ensure export growth translates into employment creation and income generation.
The strong December export performance also contributed to narrowing Uganda's merchandise trade deficit by 24% to $206.42 million (Shs775.8 billion), even as imports rose to $1.6 billion (Shs6.02 trillion) during the same period.
The improved trade balance eased short-term pressure on the current account and supported relative stability in the foreign exchange market.
Uganda's export outlook could further benefit from expanded access to European markets. Jan Sadek, Head of the European Union Delegation to Uganda, said there is significant untapped potential for Ugandan products in Europe, particularly in value-added coffee and horticulture.
"It is always good to start where we have seen success already and that is obviously coffee," Sadek said, adding that the European Union has launched a €44 million (approximately Shs 182 billion) programme to support productivity and value addition in the coffee sector.
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Beyond coffee, he identified pineapples and aquaculture as high-growth opportunities, provided Uganda strengthens cold chain infrastructure and complies with phytosanitary standards required in European markets.
Meanwhile, Julius Mukunda, Executive Director of the Civil Society Budget Advocacy Group, welcomed the export growth but urged prudent fiscal management to ensure gains are sustainably reinvested in productive sectors.
As Uganda advances its export-led development strategy, the 2025 performance signals both opportunity and responsibility.
While strong commodity demand has propelled earnings to record levels, sustained transformation will depend on deepening industrialisation, expanding value addition and ensuring that export revenues meaningfully strengthen household incomes and the broader economy.
