Trade Gap Hits $598m as Import Bill Jumps and Coffee Revenue Slides
Uganda’s trade deficit widened to about $598 million in June 2026 as the country’s import bill rose sharply while earnings from coffee, one of its key export commodities, recorded a significant decline.
Data from the Ministry of Finance’s July Performance of the Economy Report showed that merchandise imports increased by 33.2 per cent year-on-year to $1.88 billion, compared with $1.41 billion in June 2025. The increase was largely driven by private-sector purchases of petroleum products, machinery, vehicles, chemicals and other industrial inputs. Petroleum imports alone rose by 66 per cent to $306.15 million.
Export earnings also grew during the period, rising 11 per cent to $1.28 billion, supported by higher receipts from commodities including gold, cotton, tobacco, maize, electricity and flowers. However, the increase was insufficient to match the faster growth in imports, leaving the country with a merchandise trade deficit of roughly $598 million.
Coffee provided a major setback to export performance, with earnings falling 36.3 per cent to $184.43 million as both export volumes and international prices declined. Uganda shipped about 773,308 bags during the month, down from more than one million bags a year earlier. The figures highlight the country’s exposure to commodity prices and concentrated export markets, with the ministry urging greater value addition, diversification and expansion into new markets to strengthen foreign exchange earnings and reduce dependence on external trade conditions.
