Uganda's trade deficit with the East African Community (EAC) has widened to $809 million in August 2026. The country's exports to the regional bloc amounted to $241.29 million, while imports totaled $1.05 billion. This significant trade imbalance is despite surpluses recorded with the Democratic Republic of Congo (DRC), South Sudan, and Rwanda. The deficit has contributed to a broader deterioration in Uganda's merchandise trade balance.
The overall deficit widened by 263.5 percent from July to $817.03 million in August. Imports grew much faster than exports, with export earnings increasing by 6.4 percent to $1.5 billion, while imports surged by 42 percent to $2.31 billion. Despite the widening deficit, Uganda's terms-of-trade index improved by 1.5 percent, from 125.23 in July to 127.16 in August. This indicates that export prices strengthened relative to import prices.
Kenya accounted for the largest share of Uganda's imports from the EAC, with purchases valued at approximately $714.5 million. Uganda's exports to Kenya were worth $41.05 million, resulting in a bilateral trade deficit of about $673.45 million. Kenya accounted for approximately 68 percent of Uganda's total imports from the regional bloc, making it the country's largest source of EAC imports.
Tanzania was the second-largest source of Uganda's imports from the EAC, supplying goods worth $203.6 million. Uganda's exports to Tanzania amounted to only $13.8 million, resulting in a trade deficit of $189.8 million. The deficits with Kenya and Tanzania, alongside the imbalance with Burundi, outweighed Uganda's trade surpluses with other EAC partners.
The DRC remained Uganda's largest export market within the bloc and generated the country's biggest bilateral trade surplus in August. Exports to the DRC were valued at $84.3 million, while imports amounted to $7.21 million, resulting in a surplus of approximately $77.1 million. Uganda also recorded a trade surplus of $56.71 million with South Sudan and $21.89 million with Rwanda.
The Ministry of Finance, Planning and Economic Development has attributed Uganda's deteriorating trade balance with EAC partners partly to persistent non-tariff barriers. These include protectionist measures, inconsistent regulations, and arbitrary border policies that raise the cost of moving goods across the region. Bilateral and regional engagements have set deadlines for removing trade barriers, but businesses remain cautious about whether all restrictions will be permanently removed.
The widening trade deficit coincided with mixed performance among Uganda's agricultural exports in August. Coffee export earnings fell by 11 percent to $181.65 million, while cotton export earnings dropped by 59.5 percent to $730,000. However, fish and fish-product exports, excluding regional markets, performed better, with earnings rising by 14.38 percent to $11.46 million. Maize exports also recorded stronger performance, with earnings increasing by 14 percent to $13.3 million.
Key points
- The trade deficit with the EAC widened to $809 million in August 2026.
- Uganda's exports to the EAC amounted to $241.29 million, while imports totaled $1.05 billion.
- The country's terms-of-trade index improved by 1.5 percent, indicating that export prices strengthened relative to import prices.
