KAMPALA | Uganda’s export sector recorded strong growth in May 2025, with the Middle East emerging as the leading destination for the country’s merchandise exports, according to data from the Ministry of Finance.
The Middle East accounted for 34.4% of Uganda’s total exports during the month, equivalent to USD 412 million—up from USD 303 million in May 2024.
Notably, a staggering 98.4% of Uganda’s exports to this region were destined for the United Arab Emirates (UAE), underscoring the Gulf state’s strategic role in Uganda’s external trade.
The East African Community (EAC) was the second-largest destination, taking in USD 300 million worth of Ugandan exports (25% of the total).
Of this, 20.4% was attributed to informal cross-border trade (ICBT), which continues to play a crucial role in regional commerce, particularly among small traders.
Other Key Markets:
• European Union: Uganda exported goods worth USD 229 million to the EU in May 2025, representing 19.1% of total exports—almost double the USD 114 million exported in May 2024.
• Asia: Exports to Asia reached USD 212 million, accounting for 15.5% of total exports, up from USD 186 million in the same period last year.
• Rest of Africa: Uganda’s exports to other African countries surged from USD 20.9 million to USD 57.7 million.
• Americas: Modest growth was recorded in exports to the Americas, rising from USD 13 million in May 2024 to USD 7.8 million.
• Other Destinations: Exports to the rest of Europe stood at USD 5.3 million, while those to unspecified “other countries” remained marginal at under USD 1 million.
The Ministry’s analysis indicates that the UAE, EAC member states, and key EU economies remain critical to Uganda’s export strategy, offering both scale and proximity.
The diversification across regions—particularly the growing exports to Asia and the EU—suggests Uganda is gaining resilience against regional market shocks.
Outlook
Trade analysts say the government must now focus on deepening trade partnerships, improving logistics, and removing non-tariff barriers to sustain growth in exports.
The substantial role played by ICBT in EAC trade also points to the need for more structured support to informal traders to boost formal revenue collection and trade efficiency.
As Uganda ramps up production in key sectors like minerals, coffee, and cocoa, the expanding export footprint across the Middle East, Europe, and Asia signals promising opportunities for economic growth and foreign exchange stability.
