Uganda’s exports to Somalia increased from Sh11.4 billion ($2.75 million) in 2023 to Sh28 billion ($6.78 million) in 2024, according to United Nations Comtrade data.
Tobacco products accounted for the largest share at Sh10.6 billion ($2.55 million), followed by aircraft and parts worth Sh5 billion ($1.2 million) and wood products valued at Sh2.2 billion ($528,470).
However, trade in the opposite direction remains significantly lower. Somalia’s exports to Uganda fell from Sh2.8 billion ($671,000) in 2016 to Sh146 million ($35,400) in 2021, the latest figure available from UN Comtrade.
Vincent Bagiire Waiswa, the Permanent Secretary in Uganda’s Ministry of Foreign Affairs, said the growth in trade was encouraging but the private sector could do much more.
“Our imports and exports between Uganda and Somalia have exponentially grown. However, we believe that our private sector can do better than the current statistics,” Bagiire said.
He was speaking on Wednesday at the opening of a mid-term review of the Uganda-Somalia Joint Permanent Commission (JPC) in Mogadishu. The review is being held alongside a business and investment forum and a joint exhibition.
Bagiire said the two governments had created opportunities for businesses through trade forums and exhibitions, but the private sector needed to take advantage of them.
Somalia’s Permanent Secretary in the Ministry of Foreign Affairs and International Cooperation, Hamza Adan Haadoow, who is co-chairing the JPC review, urged businesses to form partnerships and identify areas where they can invest and trade profitably.
He said Somalia saw significant opportunities to expand cooperation with Uganda in trade, investment, tourism, agriculture, education, health, labour and aviation.
Somali businesses are particularly interested in importing Ugandan products such as fresh fruit, grains, maize, wheat and cassava flour, long-life milk, medicines and medical equipment, as well as processed coffee and tea.
Bagiire said Somalia’s location could help Uganda gain better access to markets in the Gulf.
“Uganda is land linked, while Somalia has the longest coastline in Africa spanning a length of 3,333km along the Indian Ocean,” he said.
He said Somalia could become an important trade link between Africa and the Gulf states, with Mogadishu having the potential to develop into a major commercial centre in the region.
Bagiire said shorter shipping routes through Somalia could lower transport costs and give Ugandan businesses greater access to international markets.
The Gulf is already Uganda’s largest export market. The Ministry of Finance’s May 2026 Performance of the Economy report shows that the Middle East accounted for 54.2% of Uganda’s merchandise exports in April 2026, with almost all exports going to the United Arab Emirates. The East African Community accounted for another 20.8%.
Uganda’s overall exports reached a record Sh46 trillion ($12.7 billion) in the 12 months to November 2025, up from Sh30 trillion ($8.5 billion) a year earlier, according to the Bank of Uganda.
Somalia joined the East African Community on March 4, 2024, creating an additional framework for expanding trade between the two countries.
Intra-EAC exports increased by 33.2% to Sh13.2 trillion ($3.2 billion) in the April-June 2026 quarter, according to the EAC Quarterly Statistics Bulletin.
Officials said better transport links would also be important in expanding Uganda-Somalia trade.
Uganda Airlines is currently the only airline operating direct flights between Entebbe and Mogadishu, with four flights a week.
Bagiire said operational challenges affecting Uganda Airlines in Somalia were among the issues discussed during the second JPC session held in Kampala in October 2025.
He urged the two governments to conclude negotiations on a Bilateral Air Service Agreement so that it can be signed as soon as possible.
Uganda has also submitted draft memoranda of understanding on customs, standards and quality assurance, statistics and health.
The two countries also agreed in 2025 to establish a Joint Permanent Investment and Business Council to address non-tariff barriers, although the council has not yet started operating.
The meeting in Mogadishu comes as Uganda implements its Economic and Commercial Diplomacy Strategy for 2025/26 to 2029/30, which gives Ugandan embassies a greater role in promoting exports, investment and tourism.
The strategy is part of the government’s plan to expand the economy to about Sh2,069 trillion ($500 billion) by 2040.
Bagiire said agreements between the two countries should lead to practical economic benefits rather than remain on paper.
Somalia’s Haadoow said the JPC review should focus on implementing existing agreements, assigning clear responsibilities and deadlines, and strengthening mechanisms for monitoring progress.
“We must ensure that our cooperation goes beyond agreements on paper and delivers tangible benefits to the people of Somalia and Uganda,” he said.
Gen Henry Tumukunde, Uganda’s Minister of Gender, Labour and Social Development, said stronger regional trade was necessary to reduce Africa’s dependence on imported goods.
He said African countries had fragmented markets that left them importing products that could be produced within the continent.
“We watch our neighbours buy from distant continents what is grown or manufactured just a few miles away across a border line. This is a luxury we can no longer afford,” Tumukunde said.
Tumukunde was scheduled to sign a Bilateral Labour Agreement with his Somali counterpart on Wednesday afternoon.
The business forum continues on Thursday under the theme, “Harnessing Trade, Tourism and Investment Opportunities in both Countries and Beyond”.
The meeting is expected to end with the signing of a Mogadishu Declaration on trade and investment.
