Image: Healing Streams
Uganda recorded a sharp rise in export earnings in January 2026, with official data showing a year-on-year increase of more than 77%, highlighting a strong start to the year for the country’s external trade sector.
According to the Ministry of Finance’s latest economic performance report, merchandise exports climbed to approximately $1.45 billion, up from about $844.6 million in January 2025. The surge reflects robust growth across key export commodities, particularly gold and coffee, alongside contributions from industrial products, electricity and oil re-exports.
Gold Exports Lead the Surge
Gold remained the dominant driver of export growth, posting the most significant gains during the period. Export earnings from gold jumped by over 180% year-on-year, reaching roughly $913.95 million in January 2026.
The increase was supported by both higher export volumes and a steep rise in international prices. Data shows that export quantities rose significantly, while global gold prices surged amid ongoing geopolitical uncertainties and a weaker US dollar, reinforcing gold’s appeal as a safe-haven asset.
This trend aligns with Uganda’s growing role as a regional gold trading and processing hub, with the commodity now one of the country’s top sources of foreign exchange.
Coffee and Other Exports Show Steady Growth
Coffee, Uganda’s traditional export backbone, also posted modest gains. Earnings increased to about $161 million, supported primarily by higher export volumes despite softer global prices.
Additional contributions came from:
- Industrial products
- Beans and agricultural exports
- Electricity exports
- Oil re-exports
Together, these sectors reinforced the country’s export performance and helped diversify earnings, though analysts note continued reliance on a few key commodities.
Key Export Destinations
The Middle East remained Uganda’s largest export destination, accounting for nearly 49% of total exports, with the United Arab Emirates taking the bulk of shipments.
Other major markets included:
- Asia (18.4%)
- East African Community (17.9%)
- European Union (10.5%)
Within Asia, countries such as China, India, and Malaysia were key importers, particularly of mineral products and agricultural goods.
Imports Rise but Trade Balance Improves
Uganda’s imports also increased during the period, rising by about 23% year-on-year to approximately $1.31 billion, largely driven by private sector demand for machinery, vehicles and petroleum products.
Despite the rise in imports, the strong export performance helped Uganda record a trade surplus, marking a significant turnaround from deficits recorded in previous months.
Economic Outlook Strengthens
The surge in exports comes amid broader signs of economic resilience. Recent data indicates that Uganda’s economy expanded by 8.5% in the quarter ending December 2025, supported by increased trade activity and investment.
However, economists caution that the country’s heavy dependence on gold and coffee exposes it to global price volatility. Calls are growing for greater export diversification and value addition to sustain long-term growth.
Conclusion
Uganda’s strong export performance in January underscores a positive economic trajectory for 2026, driven largely by favorable global commodity trends and rising production. While the outlook remains optimistic, maintaining momentum will depend on diversification efforts and stability in international markets.
Get the latests of our Loveworld News from our Johannesburg Stations and News Station South Africa, LN24 International
Related Posts
Some description text for this item