Uganda’s import bill climbed sharply in August 2026 as purchases of petroleum, minerals, machinery and vehicles increased, while gold exports helped lift merchandise export earnings to $1.49 billion.
Uganda’s merchandise imports rose by 66.5% year-on-year to $2.31 billion (about Shs8.55 trillion) in August 2026, driven by higher purchases of petroleum products, minerals, machinery and vehicles, according to the Ministry of Finance.
The ministry’s Performance of the Economy Monthly Report for September 2026 shows that imports increased from $1.39 billion (about Shs5.14 trillion) in August 2025, reflecting higher values and volumes of oil and non-oil imports by the formal private sector.
The increase was attributed to higher imports of mineral and petroleum products, machinery, equipment, vehicles and accessories. Rising global crude oil prices and associated freight costs also contributed to the higher import bill.
On a monthly basis, imports increased by 41.9% from $1.63 billion (about Shs6.03 trillion) in July 2026, driven by higher imports of mineral products, chemicals, plastics, machinery, vehicles and accessories.
The surge highlights Uganda’s demand for fuel, industrial equipment and transport machinery, but also means businesses and the country need more foreign currency to pay for goods purchased abroad.
The East African Community (EAC) remained Uganda’s largest source of imports, accounting for 45.5% of the August total, equivalent to about $1.05 billion (Shs3.89 trillion).
Asia was the second-largest source, supplying 30.5% of imports valued at approximately $704.88 million (Shs2.61 trillion). The rest of Africa accounted for 15.3%, while other regions supplied the remaining 8.7%.
Together, the EAC and Asia accounted for more than three-quarters of Uganda’s merchandise imports, underlining the importance of regional trade and Asian suppliers to the country’s supply chains.
Merchandise exports also recorded strong growth, increasing by 40.6% year-on-year to $1.49 billion (about Shs5.51 trillion) in August 2026, up from $1.06 billion (Shs3.92 trillion) a year earlier.
The ministry attributed the increase to higher export values and volumes of gold, tea, tobacco and oil re-exports.
On a monthly basis, export receipts rose by $90.39 million (about Shs334.44 billion), or 6.4%, from $1.40 billion (Shs5.18 trillion) in July.
Coffee exports, however, weakened. Earnings fell by 10.9% from $204.08 million (Shs755.10 billion) in July to $181.65 million (Shs672.11 billion) in August.
The report attributed the decline partly to prolonged drought and unusually high temperatures in major coffee-growing areas, including Greater Masaka, Kyotera, Sembabule and Luwero. The weather conditions affected flowering, cherry development and bean filling, reducing harvests in the affected areas by an estimated 10% below normal levels.
Falling international Robusta coffee prices also weighed on earnings as increased supplies from Brazil and Vietnam put pressure on global markets.
Gold remained Uganda’s leading export earner, accounting for approximately 60% of merchandise export receipts in August, with earnings of $889 million (about Shs3.29 trillion).
The dominance of gold highlights its growing importance to Uganda’s export sector but also exposes earnings to fluctuations in global demand and prices.
The Middle East remained Uganda’s leading export destination, accounting for 53.8% of total merchandise exports, equivalent to $802.77 million (about Shs2.97 trillion). The United Arab Emirates accounted for 99.1% of exports to the region, largely reflecting its role as the main market for Uganda’s gold.
The EAC accounted for 21.4% of exports, followed by Asia at 9.9% and the European Union at 9.7%.
Uganda recorded trade surpluses with the Middle East and the European Union but deficits with the other trading blocs covered in the report.
The surplus with the Middle East widened to $735.46 million (about Shs2.72 trillion), up from $650.47 million (Shs2.41 trillion) in July and $316.24 million (Shs1.17 trillion) in August 2025, largely supported by gold exports to the UAE.
In contrast, the surplus with the European Union narrowed slightly to $57.49 million (about Shs212.71 billion), down from $61.22 million (Shs226.51 billion) in July.
The trade deficit with the EAC widened by 64.7% to $730.27 million (about Shs2.70 trillion) from $443.27 million (Shs1.64 trillion) in July, making it Uganda’s largest regional trade deficit during the month.
The deficit with Asia also increased to $555.57 million (about Shs2.06 trillion), from $510.81 million (Shs1.89 trillion) in July.
Meanwhile, Uganda’s trade with the rest of Africa shifted from a surplus of $34.64 million (about Shs128.17 billion) in July to a deficit of $298.99 million (about Shs1.11 trillion) in August.