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Uganda’s EAC trade deficit drops in April but widens year-on-year

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Uganda’s trade deficit with East African Community (EAC) partner states eased in April 2025, according to the latest Performance of the Economy report from the Ministry of Finance.

The country recorded a trade deficit of $127.05 million with the region, down from $152.97 million in March. The improvement was mainly driven by a nearly 50 percent surge in exports to the EAC, which rose to $270.40 million from $180.78 million. This growth outpaced a 19.1 percent rise in imports, which climbed to $397.46 million from $333.75 million.

Uganda maintained trade surpluses with several EAC partners: USD 76.80 million with the Democratic Republic of Congo (DRC), $55.71 million with South Sudan, $35.45 million with Rwanda, and $5.44 million with Burundi. However, deficits persisted with the region’s largest economies—Tanzania ( $231.91 million) and Kenya ($68.54 million).

Despite the monthly improvement, Uganda’s annual trade deficit with the EAC widened compared to April 2024. The gap grew from $53.43 million to $127.05 million due to a 52 percent rise in imports, outpacing a 30 percent increase in exports.

The Ministry noted that while Uganda’s integration within the EAC is progressing, greater focus on export diversification and competitiveness is needed to reduce reliance on imports and strengthen trade balance.

Stanbic

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