Uganda’s trade deficit widens by 25.6% year-on-year despite export growth

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Uganda’s trade deficit with the rest of the World widened by $60.44 million (25.6%) year-on-year, the latest performance of the economy report by the finance ministry shows.

The August report shows that the deficit rose from $236.39 million in July 2024 to $296.82 million in July 2025.

This downturn was driven by an increase in the import bill by $495.87 million, which more than offset the $435.43 million increase in the export earnings in July 2025, says the report.

A trade deficit occurs when a country’s imports exceed its exports, meaning the country is not making money from trade and is inevitably in debt.

Uganda’s merchandise exports grew by 53.6% in July from a year earlier. They rose from $812.69 million in July 2024 to $1,248.12 million in July 2025.

This growth was mainly attributed to higher export earnings from coffee, gold, sugar, base metal and products, crude oil, fruits as well as vegetables, among others.

The report also says Uganda’s merchandise imports grew by 47.3% from $1,049.08 million to $1,544.94 million in the period under review.

This increase was primarily attributed to higher formal private sector imports for both the oil and non-oil imports, coupled with a marginal increase in project related Government imports.