Uganda’s export earnings increased by 36 percent year-on-year in August to $1.5 billion, driven largely by higher receipts from gold shipments, according to a finance ministry report cited by Reuters.
The report, seen by Reuters on Thursday, put export earnings at $1.5 billion, up from $1.1 billion in August a year earlier.
Gold accounted for $889 million of the August total, a 68.9 percent increase from the same month last year, highlighting the metal’s growing importance to Uganda’s export earnings.
The export figures come as Uganda faces pressure on its currency and external payments. The finance ministry said higher remittances from Ugandans living abroad towards the end of 2026, together with tighter monetary policy, were expected to support the shilling.
The Bank of Uganda raised its benchmark interest rate from 9.75 percent to 12 percent on October 14, an increase of 2.25 percentage points, amid concerns about currency depreciation and rising inflation.
The currency had weakened in August despite inflows from commodity exports and remittances. The finance ministry’s monthly economic report said the shilling depreciated by an average of 0.7 percent against the US dollar during the month, as demand for foreign currency from the energy and manufacturing sectors outweighed available inflows.
Oil exports expected to boost foreign exchange earnings
Uganda is also counting on future oil exports to strengthen its external position.
The finance ministry said the start of commercial oil production and exports would increase foreign exchange earnings over the medium term.
The country expects to begin commercial crude oil production in early 2027 from fields in western Uganda, near the border with the Democratic Republic of Congo, according to the report cited by Reuters.
The August export figures show the contribution of gold to Uganda’s foreign exchange earnings, while the anticipated start of oil exports represents another potential source of revenue. The extent to which these inflows will ease pressure on the shilling will depend on wider foreign currency demand and other developments affecting the country’s external accounts.
