Coffee & Cocoa Boom Boosts Uganda’s Foreign-Earnings by 37 %
Kampala/Uganda.
Uganda’s export sector has delivered a strong performance, with revenues from coffee and cocoa rising by 37.2% (to US$11.1 billion) in the year to July 2025 — significantly helping to narrow the country’s trade deficit and strengthen foreign-exchange flows. According to the recent report from the Bank of Uganda, increased export volumes, improved bean quality and higher world commodity prices powered the growth.
Key figures
Coffee & cocoa export earnings jumped from US$8.1 billion to US$11.1 billion.
The current account moved into surplus (US$1.25 billion) from a deficit of US$805 million a year earlier.
Imports rose by 23.8% (to US$13.7 billion), yet the stronger export earnings helped trim the trade-deficit gap.
Drivers of growth
National value-chain investments via the Coffee and Cocoa Value Chain Development Project (CoCoDev), which helped improve quality standards and processing.
Greater global demand and higher international prices for Uganda’s coffee and cocoa.
Some increase in foreign-direct investment (FDI) and portfolio inflows supporting earnings.
Why this matters
Strong export performance improves the balance of payments and helps stabilise the Ugandan shilling, reducing import-price risks and inflationary pressure.
Boosts incomes for farmers and rural communities involved in coffee and cocoa production — though the full benefit depends on value-addition and equitable distribution.
Enhances Uganda’s competitiveness in global agricultural markets.
Risks & caveats
Dependence on commodity exports leaves Uganda exposed to price volatility, global demand shifts and external shocks.
Export growth must be matched with value-addition (processing, branding) rather than just raw-commodity.
Local challenges remain: infrastructure, extension services, climate stress must be managed for sustainable growth.
What to watch
How Uganda channels the export windfall — reinvesting into higher-value agribusiness, processing, rural development.
Whether the export earnings translate into better farm-gate incomes and improved livelihoods for smallholders.
How Uganda diversifies beyond coffee & cocoa to other crops, services or agro-industrial clusters.
