Uganda’s total earnings from exports grew by 21.8% in the first quarter of the current financial year, a new report indicates.
The finance ministry said this week, the country had earned $2.262b from exports in quarter one of the financial year 2024/25 compared to $1.857 earned in Q1 of the previous year.
“This growth was majorly due to coffee exports as both the amount of coffee exported and the international price went up significantly,” the ministry noted.
“Additionally, other exports including mineral products, flowers, simsim, tobacco contributed to the improvement in the amount of earnings from exports.”
The ministry also noted that Foreign Direct Investment (FDI) registered growth of 25.4% in Q1 of 2024/25 compared to the same quarter of the previous financial year.
“Total FDI in Q1 FY 2024/25 was $799.46 million compared to $637.58 million,” the report stated.
The ministry reported indicated that the economy would grow at an average rate of 6-6.6%.
“Additionally, it is projected that inflation will remain within the 5% target of the Central Bank while the foreign exchange rate is also anticipated to remain stable, supported by continued inflows of FDI into the Oil and Gas sector. On the fiscal front, domestic revenues are projected to perform at 100%.”
The country’s shilling has also remained stable, according to the ministry.
“In December 2024, the Shilling appreciated by 0.4% having traded at an average midrate of Shs 3,664.08 per USD compared to an average midrate of Shs 3,678.65 per USD in November 2024,” the ministry noted.
“This was partly attributed to increased remittances inflows during the month as Ugandans working abroad sent funds back to their families for the festive season plus increased Foreign Direct Investment especially to the oil sector, etc.”
