Uganda’s merchandise export earnings rose sharply in March, driven by a surge in gold shipments and higher global bullion prices, the finance ministry said in a report released late Thursday.
The East African country earned US$1.44 billion from exports in March, up 45 percent from US$993 million recorded in the same month a year earlier, reflecting a strong rebound in external trade performance.
Gold was the main driver of the increase, with bullion exports more than doubling to US$851 million during the month.
The ministry attributed the jump largely to elevated international gold prices, which have been supported by global economic uncertainty, geopolitical tensions and increased demand from central banks diversifying their reserves.
“This was largely due to higher global gold prices,” the report said. “There has been upward pressure on global gold prices as gold is perceived as a safe haven in an increasingly uncertain global environment that has seen central banks diversify their reserve assets.”
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Gold has remained one of the world’s most important safe-haven assets, with investors typically turning to the metal during periods of inflationary pressure, currency volatility or geopolitical instability.
In recent months, global markets have been unsettled by ongoing trade tensions, fluctuating interest rate expectations in advanced economies and renewed concerns over energy supply disruptions linked to conflict in the Middle East.
These factors have helped push bullion prices higher, boosting export revenues for gold-producing and gold-trading countries, including.
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Uganda has in recent years emerged as a significant regional hub for gold processing and trade, despite having limited domestic large-scale gold mining output compared with traditional producers.
The country’s export figures are increasingly influenced by refined and re-exported gold, much of it sourced from the wider Great Lakes region, particularly neighbouring Democratic Republic of Congo and South Sudan.
According to central bank data, Uganda’s bullion export earnings have grown rapidly over the past few years, reflecting both higher global prices and increased trading volumes.
The finance ministry report noted that the strong March performance highlights the growing importance of gold in Uganda’s external sector, even as other commodity exports remain relatively stable.
Economists say the structure of Uganda’s export base has shifted in recent years, with gold now accounting for a disproportionately large share of foreign exchange inflows.
“This is largely a price-driven boom, but also a reflection of Uganda’s role as a regional gold trading hub,” one Kampala-based economist said.
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The surge in earnings is expected to provide some support for Uganda’s balance of payments position and help stabilise the local currency, which has faced periodic pressure from import demand and global financial volatility.
However, analysts caution that reliance on gold exports exposes the economy to price swings in international commodity markets, which can reverse gains quickly if global demand weakens.
Uganda’s broader export basket includes agricultural commodities such as coffee, tea and fish, but these have grown at a slower pace compared with the rapid expansion in mineral-related earnings.
Officials have in recent years sought to formalise and regulate the gold sector more tightly, aiming to improve transparency and increase state revenue from trading activities.
The government has also encouraged investment in mineral processing infrastructure in an effort to capture more value locally rather than exporting raw or semi-processed materials.
Despite the strong March figures, analysts say sustaining export growth will depend on whether global gold prices remain elevated and whether Uganda can maintain its position in regional bullion supply chains.
The finance ministry report did not provide a forecast for the coming months but noted that external risks, including global financial tightening and commodity market volatility, could influence future export performance.
For now, the sharp rise in March earnings underscores the growing role of gold in shaping Uganda’s trade dynamics and highlights the country’s increasing integration into global commodity markets.
