Uganda's merchandise imports rose by 66.5% year-on-year to $2.31 billion in August 2026, according to the Ministry of Finance. The surge was driven by higher purchases of petroleum products, minerals, machinery and vehicles, with imports climbing from $1.39 billion in August 2025. On a monthly basis, imports increased by 41.9% from $1.63 billion in July 2026. Rising global crude oil prices and associated freight costs contributed to the higher import bill, alongside increased demand for industrial equipment and transport machinery.
The East African Community remained Uganda's largest source of imports, accounting for 45.5% of the August total at about $1.05 billion, while Asia supplied 30.5% valued at approximately $704.88 million. Together, the EAC and Asia accounted for more than three-quarters of Uganda's merchandise imports. The rest of Africa contributed 15.3%, with other regions supplying the remaining 8.7%.
Merchandise exports recorded strong growth, increasing by 40.6% year-on-year to $1.49 billion in August, up from $1.06 billion a year earlier, the ministry said. Gold emerged as Uganda's leading export earner, accounting for approximately 60% of merchandise export receipts at $889 million. The Middle East remained the leading export destination, accounting for 53.8% of total merchandise exports at $802.77 million, largely reflecting the United Arab Emirates' role as the main market for Uganda's gold.
Coffee exports, however, weakened. Earnings fell by 10.9% from $204.08 million in July to $181.65 million in August. The Ministry of Finance attributed the decline partly to prolonged drought and unusually high temperatures in major coffee-growing areas including Greater Masaka, Kyotera, Sembabule and Luwero, which reduced harvests 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.
Uganda recorded a widened trade surplus with the Middle East of $735.46 million in August, up from $650.47 million in July, largely supported by gold exports to the UAE. However, the trade deficit with the EAC widened by 64.7% to $730.27 million from $443.27 million in July, making it Uganda's largest regional trade deficit during the month. The deficit with Asia increased to $555.57 million from $510.81 million in July.
For savers, borrowers, business owners and investors, Uganda's rising import bill means businesses and the country need more foreign currency to pay for goods purchased abroad, while dependence on gold exports exposes the economy to fluctuations in global demand and prices.