KAMPALA, Oct 22 – Uganda’s export earnings increased 36% year-on-year to $1.5 billion in August, driven by higher receipts from gold and other commodity shipments, according to a finance ministry report cited by Reuters on Thursday.
The country exported goods worth $1.5 billion during the month, up from $1.1 billion in August a year earlier, the report showed.
Gold accounted for a significant share of export receipts. Uganda shipped $889 million worth of the precious metal in August, representing a 68.9% increase from the same period last year.
The figures underscore the growing importance of gold to Uganda’s external trade, as the country has emerged in recent years as a regional centre for gold processing and trading.
Higher commodity export earnings can support foreign exchange availability and help strengthen the country’s external position, although currency performance also depends on import demand, capital flows and monetary conditions.
Remittances and Monetary Policy Expected to Support Shilling
Uganda’s finance ministry expects diaspora remittances to provide additional support to the local currency towards the end of 2026.
The ministry also pointed to the central bank’s steep policy rate increase as a factor expected to offer near-term support to the Ugandan shilling.
Higher interest rates can help support a currency by influencing domestic financial conditions and investment flows, although the impact depends on wider economic and market developments.
The anticipated increase in remittances, combined with monetary tightening, is expected to provide immediate support to the shilling, the ministry said.
Oil Production Could Strengthen External Position
Uganda expects to begin commercial crude oil production early next year from fields in the country’s west, near its border with the Democratic Republic of Congo.
The start of production and exports is expected to provide an additional source of foreign exchange earnings, complementing revenue from gold and other commodity exports.
“Commencement of commercial oil production and export will strengthen Uganda’s foreign exchange earnings and external position over the medium term,” the ministry said.
The anticipated oil exports represent a potential shift in Uganda’s external trade profile, adding crude petroleum to its existing sources of export income.
The medium-term impact will depend on the pace at which production and exports develop. For now, the August figures highlight the contribution of gold to Uganda’s export growth, while planned oil production offers a prospective additional source of foreign exchange.
