Uganda’s export sector posted a strong performance in the Financial Year 2024/25, with merchandise exports jumping to about USD 10.64 billion. This was a 36 per cent increase compared to the previous year, marking one of the country’s best export results to date.
The growth in merchandise exports lifted Uganda’s total exports of goods and services by 32 per cent to USD 13.3 billion. As a result, the country’s trade deficit narrowed significantly, reflecting improved export earnings.
Free Zones, managed by the Uganda Free Zones and Export Promotions Authority (UFZEPA), played a key role in this success. Exports from these zones reached USD 1.201 billion, accounting for 11.3 per cent of Uganda’s total merchandise exports during the year. Investor confidence remained high, with private sector investments in Free Zones amounting to USD 268 million, well above the annual target of USD 200 million. This brought total cumulative investment in the zones to USD 2.12 billion.
Manufacturing led the investment growth, making up 82.6 per cent of all investments recorded during the financial year. Uganda’s leading export products were refined gold, cocoa beans, light manufactured goods such as steel, fish products, and sugar. Earnings from manufactured exports rose by 33.1 per cent to USD 5.175 billion, with gold alone contributing USD 4.211 billion.
Speaking at the Osaka Expo in Japan in June, the State Minister for Trade, Industry and Cooperatives, Gen. Wilson Mbasu Mbadi, said Uganda offers attractive conditions for investors. He highlighted the country’s tax incentives and business infrastructure, which are designed to help medium- and large-scale investors set up operations quickly and efficiently.
“A potential investor in Uganda must understand the tax incentives and the business infrastructure we have put in place to enable medium- and large-scale developers to establish themselves seamlessly and kick-start their enterprises,” Gen. Mbadi said.
He added that Uganda provides strong investment returns, estimated at between 13 and 14 per cent.
Free Zones also contributed to job creation, generating 1,978 new jobs during the year. This represented a 16.6 per cent increase in employment and raised the total number of workers in the zones to 13,881. Most of the new jobs were created in the horticulture and manufacturing sectors.
UFZEPA is implementing the Ten-Fold Growth Strategy, which aims to rapidly expand value-added exports and grow Uganda’s economy to USD 500 billion by 2040. One of the main targets is to increase the share of manufactured goods in total merchandise exports from 24.6 per cent to 50 per cent.
Gen. Mbadi emphasised that achieving this ambitious goal will require strong national commitment to long-term development plans.
“Uganda’s ten-fold growth strategy is achievable if we embrace and implement our development plans more deliberately,” he said.
