Uganda trades at surplus with EAC member states

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Uganda recorded a trade surplus of $41.52 million (sh155.2 billion) with East African Community (EAC) partner states in January 2026, marking a sharp improvement from a deficit of $186.07m (Sh695.6b) registered in December 2025, according to the latest performance of the economy report from the ministry of finance.

The turnaround in Uganda’s regional trade position was largely driven by a steep decline in imports from the EAC bloc, which fell by 53.0% from $465.43m (sh1.74 trillion) in December 2025 to $218.91m (Sh819.0b) in January 2026. This represents a reduction of $246.52m (sh922.0b) in import expenditure within a single month.

Exports to the region also declined, though at a much slower pace. They dropped by 6.8%, from $279.35m (Sh1.04 trillion) to $260.43m (sh973.0b) over the same period, a decrease of $18.92m (sh70.8b). The sharper contraction in imports compared to exports explains the shift from deficit to surplus in the month under review.

On an annual comparison basis, Uganda’s external position with EAC partner states also improved significantly. In January 2026, the country posted a surplus of $41.52m (sh155.2b) compared to a deficit of $3.61m (Sh13.5b) recorded in January 2025. The improvement was attributed to a combination of rising exports and declining imports over the year.

At the country level, Uganda’s trade performance in January 2026 showed mixed outcomes across the region. The country recorded surpluses with the Democratic Republic of Congo (DRC), South Sudan, Rwanda, and Burundi.

Trade with the DRC yielded the largest surplus at $101.79m (sh380.7b), followed by South Sudan at $45.76m (sh171.1b). Uganda also posted a surplus of $30.24m (sh113.1b) with Rwanda and $3.82m (Sh14.3b) with Burundi.

However, Uganda continued to record deficits with some key regional partners. Trade with Tanzania resulted in a deficit of $32.15m (sh120.2b), although this was a significant improvement from a much larger deficit of $249.34m (sh932.6b) recorded in December 2025. The reduction points to a moderation in import pressure from Tanzania during the month.

Uganda’s largest bilateral deficit in the region was with Kenya, where the trade gap stood at $107.95 million (sh403.6 billion) in January 2026. This reflects continued high import demand from Kenya relative to Uganda’s exports to that market.

In particular, non-tariff barriers within the region continue to constrain Uganda’s export penetration, especially in the Tanzanian market.