Africa-Press – Uganda. Uganda’s export sector recorded a sharp upswing in March 2025, growing by 40.6 percent compared to the same month last year, as the country posted Shs3.3 trillion in merchandise exports, the latest government figures show.
According to the Ministry of Finance’s Performance of the Economy Report for April 2025, exports rose to $899.10 million from $639.63 million in March 2024, signalling a strong rebound in international trade led by key commodities.
“The increase in export earnings was mainly on account of higher receipts from coffee, cocoa beans, mineral products, sugar, and fish with its products,” the report stated.
Coffee, long Uganda’s top foreign exchange earner, brought in over $107 million (about Shs393 billion) in March alone.
Mineral products, including gold, contributed the largest share at $276.2 million (Shs1.01 trillion), followed by cocoa beans at $32.5 million (Shs119.3 billion), sugar at USD 18.9 million (Shs 69.4 billion), and fish and fish products at $15.7 million (Shs57.6 billion).
Compared to February 2025, monthly export earnings grew 7.3 percent from $838.18 million (Shs3.07 trillion), reflecting sustained external demand and favourable commodity prices.
This robust performance narrowed Uganda’s trade deficit significantly.
The deficit dropped by nearly half—from $397.58 million (Shs1.46 trillion) in March 2024 to $213.63 million (Shs784.1 billion) in March 2025—largely due to the stronger export growth outpacing imports.
Uganda’s import bill also grew but at a slower rate, reaching USD 1.11 billion (Shs 4.07 trillion) in March 2025 compared to USD 1.037 billion (Shs 3.81 trillion) a year earlier.
The increase was driven by higher inflows of petroleum products, machinery, and vehicles, indicating rising domestic investment and consumption.
On the monetary front, the shilling showed resilience, depreciating only marginally from an average mid-rate of Shs 3,667.63 in March to Shs 3,669.18 in April—a 0.04 percent shift.
To support continued economic recovery and tame inflation, the Bank of Uganda maintained the Central Bank Rate at 9.75 percent.
Inflation eased further, with headline inflation dropping to 3.5 percent in April from 3.9 percent in March, driven by lower food and transport prices.
Commercial lending conditions improved alongside these macroeconomic gains.
The average interest rate on shilling-denominated loans declined from 18.76 percent in February to 17.74 percent in March, a development attributed to increased bank competition and targeted lending to low-risk borrowers.
Business sentiment also remained upbeat, with the Business Tendency Index (BTI) rising from 58.32 in March to 59.32 in April, reflecting growing confidence particularly in the construction, manufacturing, and wholesale sectors.
As commodity exports continue to drive foreign exchange inflows and inflation remains under control, the outlook for Uganda’s economy in 2025 appears increasingly optimistic.
With a narrowing trade gap and strong investor sentiment, Uganda is poised for steady recovery and growth in the months ahead.
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