Uganda sugar export earnings rise 55.5% in Q1 2025/26 on strong regional demand
Bank of Uganda data shows rising sugar export earnings, driven by increased demand and expanded regional markets.
UGANDA – Uganda’s sugar export earnings rose by 55.5 percent in the first quarter of the 2025/26 financial year, supported by strong regional demand, according to data released by the Bank of Uganda.
Sugar remains one of Uganda’s key export commodities, despite facing periodic challenges over the past five years. Exports have occasionally been disrupted after markets such as Kenya and Tanzania imposed restrictions, citing concerns that some consignments were re-exports from third countries.
According to Bank of Uganda data, sugar export earnings increased from US$47.7 million in June 2024 to US$65.92 million in the first quarter of the 2025/26 financial year. This represents a real-term increase of US$18.22 million over just more than two years.
The data further shows that earnings dipped to US$36.65 million in the second quarter of the 2024/25 financial year before rebounding to US$50.98 million, a real-term growth of US$14.33 million. Export revenues continued to rise to US$66.86 million in the fourth quarter of the 2024/25 financial year, before easing slightly to US$65.92 million in the first quarter of 2025/26.
Experts attribute the sustained growth in earnings largely to increased demand from Kenya, where the domestic sugar industry continues to face production capacity challenges.
Uganda registered its first sugar exports in the 2007/08 financial year, earning US$29.3 million. Over the subsequent decade, the country exported a total of 76,150 metric tonnes, averaging about 6,300 metric tonnes annually.
In recent years, annual export volumes have expanded significantly to 172,766 tonnes, reflecting rapid growth in the sector.
The country’s sugar production capacity has also increased substantially, with current output reaching about 700,000 tonnes per year, up from 350,000–400,000 tonnes a decade ago.
Uganda has diversified its export destinations, with Rwanda, the Democratic Republic of Congo and South Sudan emerging as key alternative markets when access to Kenya and Tanzania is restricted.
Bank of Uganda has previously noted that “sugar exports continue to grow generating more than US$1 billion in foreign exchange revenue,” underscoring the commodity’s growing importance to the country’s export earnings.
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