Business 22 May 2026 Daily Monitor (Uganda)
Uganda's Trade Deficit with EAC Shrinks as Exports Rise 17% in March
Uganda experienced a notable reduction in its trade deficit with East African Community (EAC) member states in March 2026, driven by a significant 17 percent surge in export earnings that outpaced import growth. The Ministry of Finance reported the deficit narrowed to $44.33 million from $59.95 million in the preceding month. Source: https://www.monitor.co.ug/uganda/news/national/uganda-s-trade-deficit-with-eac-narrows-in-march-as-exports-surge-17-percent-5470238
Uganda’s trade balance with its East African Community (EAC) partners saw a significant improvement in March 2026. The country’s trade deficit with the bloc shrank to $44.33 million (Shs164 billion), a marked decrease from $59.95 million (Shs221 billion) in February.
This positive shift is largely attributed to a robust 17 percent increase in Uganda’s export receipts to the EAC region, which reached $314.96 million (Shs1.16 trillion). This surge in earnings successfully offset a 9.2 percent rise in the import bill, which amounted to $359.30 million (Shs1.32 trillion) during the same period, according to the Ministry of Finance’s State of the Economy Report.
While Uganda maintained trade surpluses with the Democratic Republic of Congo, South Sudan, Rwanda, and Burundi, deficits with Tanzania and Kenya persisted. The Ministry pointed to non-tariff barriers as a significant impediment to Ugandan exports entering these two key markets, contributing to deficits of $170.20 million with Tanzania and $102.45 million with Kenya.
On a broader regional scale, inflation saw an uptick across most EAC nations in April 2026, primarily driven by heightened fuel and transportation costs. Rwanda experienced the most substantial rise in inflation, reaching 11.5 percent. Conversely, EAC currencies presented a mixed performance against the US Dollar in April, with the Ugandan Shilling appreciating by 0.4 percent.
This development highlights Uganda’s progress in managing regional trade imbalances, though challenges from non-tariff barriers and rising inflation remain areas of concern for the coming quarter.
Source: Daily Monitor (Uganda)