Business
Uganda’s trade deficit with EAC partner states rises to sh1.9 trillion
The report says the substantial rise was on account of a 74.4% increase in imports, which offset the 10.5% increase in export earnings from the region.
On a country-specific level, Uganda traded at deficits of $364.77 million, $199.42 million and $174.05 million with Kenya, Burundi and Tanzania, respectively. (File photo)
By: Umaru Kashaka, Journalist @New Vision
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The gap between the value of goods imported into Uganda and Ugandan products sold to other East African Community (EAC) countries continues to widen, official figures show.
In June 2026, Uganda traded at a deficit of $520.06 million (about sh1.971 trillion) with EAC partner states, a substantial rise from a deficit of $192.23 million (about sh728.73 billion) registered in June 2025, the Ministry of Finance’s performance of the economy report for July 2026 says.
The report says the substantial rise was on account of a 74.4% increase in imports, which offset the 10.5% increase in export earnings from the region.
A trade deficit occurs when a country’s imports exceed its exports, meaning it buys more goods from other countries than it sells to them.
On a country-specific level, Uganda traded at deficits of $364.77 million, $199.42 million and $174.05 million with Kenya, Burundi and Tanzania, respectively.
However, trade surpluses were recorded with DR Congo, Rwanda and South Sudan, amounting to $112.28 million, $27.99 million and $77.92 million, respectively.
Merchandise imports from the region rose by 74.4%, from $481.68 million in June 2025 to $839.91 million in June 2026.
On a country-specific level, Uganda traded at deficits of $364.77 million, $199.42 million and $174.05 million with Kenya, Burundi and Tanzania, respectively.
However, trade surpluses were recorded with DR Congo, Rwanda and South Sudan, amounting to $112.28 million, $27.99 million and $77.92 million, respectively.
Merchandise imports from the region rose by 74.4%, from $481.68 million in June 2025 to $839.91 million in June 2026.
The largest share of Uganda’s imports was sourced from Kenya, Burundi and Tanzania, which jointly accounted for 95.7% of Uganda’s imports from the region, valued at $394.26 million, $212.10 million and $197.20 million, respectively.
Similarly, merchandise export earnings increased by 10.5%, rising from $289.44 million in June 2025 to $319.85 million in June 2026.
“This slower growth was partly explained by [the] existence of some non-tariff barriers, including import quotas, imposed by some Partner States, which constrained exports of sugar, maize, among others,” the report says.
However, with effect from July 1, 2026, EAC partner states agreed to change their domestic legislation to remove all tariff and non-tariff barriers. This will partly contribute to a further increase in export earnings from the region.
Within the region, DR Congo remained Uganda’s largest export destination, accounting for 39.4% of regional merchandise exports. South Sudan and Rwanda followed, with shares of 25.9% and 14.3%, respectively.
Similarly, merchandise export earnings increased by 10.5%, rising from $289.44 million in June 2025 to $319.85 million in June 2026.
“This slower growth was partly explained by [the] existence of some non-tariff barriers, including import quotas, imposed by some Partner States, which constrained exports of sugar, maize, among others,” the report says.
However, with effect from July 1, 2026, EAC partner states agreed to change their domestic legislation to remove all tariff and non-tariff barriers. This will partly contribute to a further increase in export earnings from the region.
Within the region, DR Congo remained Uganda’s largest export destination, accounting for 39.4% of regional merchandise exports. South Sudan and Rwanda followed, with shares of 25.9% and 14.3%, respectively.