Uganda’s economy received a strong push in April as goods exports recorded their fastest growth in over a year, giving hope to the country’s trade outlook. According to official data released by the Bank of Uganda, the value of merchandise exports jumped by an impressive 72.1% in April 2025 compared to the same month last year. This helped to cushion the effect of rising imports, which also increased sharply in the same period.
The trade gap, or what economists call the merchandise trade deficit, stood at $126.9 million (about UGX 457.4 billion). While this figure is still high, it reflects a slowdown in the rate at which the deficit is growing. In March, the trade deficit had grown by over 53.7%, but in April, the growth rate dropped to 41.7%, largely thanks to the robust rise in exports.
Gold was the star performer in Uganda’s export basket. The precious metal contributed the largest share of total export earnings, rising by 78% year-on-year to bring in $462.9 million, the highest level in nine months. Gold continues to be one of Uganda’s leading sources of foreign exchange, supported by strong global demand and steady production levels.
Coffee, another of Uganda’s traditional export earners, also made a strong showing in April. Coffee exports rose by $129.7 million from the same month in 2024, hitting a total of $214.4 million. This marked a significant increase for the sector, which has benefited from improved global prices and increased production. Uganda remains the largest exporter of coffee in Africa after Ethiopia and continues to depend heavily on this crop for revenue.
Also worth noting is the strong performance of cocoa bean exports, which quadrupled from $25.2 million in April last year to $105.6 million this April. The rise in cocoa exports shows the growing strength of Uganda’s agricultural export sector, especially in non-traditional crops. Experts say this is a result of better farm practices, more value addition, and government efforts to support agri-business.
While exports performed very well, imports also rose significantly. According to the Bank of Uganda, imports increased by 30.4%, reaching $1.2 billion — the fastest rise in the last three months. This increase was mainly driven by the formal private sector, especially for non-oil imports such as machinery, equipment, and raw materials needed for manufacturing and construction.
On the other hand, oil imports fell by $28.9 million, easing some of the pressure on the national import bill. This decline may be linked to lower global oil prices and possibly increased use of local energy alternatives. The drop in oil import costs helped offset the rise in non-oil imports and slightly reduced the overall burden on the trade account.
Economists say the April trade numbers show a positive trend for Uganda. The sharp rise in export earnings indicates that local producers are taking advantage of global market opportunities, especially in key sectors like mining, agriculture, and agri-processing. However, the continued increase in imports — especially of consumer goods and capital equipment — shows the country still relies heavily on foreign products to meet domestic needs.
There is also a growing call for the Ugandan government to further support exporters by improving infrastructure, simplifying customs processes, and ensuring stability in the foreign exchange market. Experts believe such efforts will help boost export volumes, reduce trade imbalances, and strengthen the shilling.
As Uganda heads further into 2025, trade experts will be watching closely to see if the positive momentum continues in the coming months. If exports remain strong and imports are well managed, Uganda could see a more stable and sustainable trade position — a much-needed boost for the broader economy.
