Uganda’s merchandise export earnings witnessed a remarkable upswing in February 2025, climbing by 32.3% compared to the same period the previous year. Data from the Ministry of Finance, Planning and Economic Development‘s March 2025 Performance of the Economy Report reveals that exports reached $843.05 million (approximately sh3.1 trillion), a substantial increase from $637.16 million (approximately sh2.3 trillion) in February 2024. This growth was primarily fueled by the robust performance of agricultural exports, with coffee, cocoa, and tobacco leading the charge.
Coffee, maintaining its stronghold as Uganda’s top export, more than doubled its earnings to $167.68 million (sh614 billion) in February 2025, compared to $82.56 million (sh302 billion) in February 2024. This impressive surge was attributed to a combination of favorable international coffee prices and increased export volumes. The quantity of 60kg bags of coffee exported also rose significantly, from 434,582 bags in February 2024 to 555,756 bags in February 2025.
Cocoa exports also experienced substantial growth, with receipts jumping by 164.4% to $68.7 million (sh252 billion) in February 2025, compared to $25.98 million (sh95 billion) in February 2024. Similarly, tobacco exports saw a near sixfold increase, rising from $2.89 million (sh10.6 billion) to $17.05 million (sh62 billion) during the same period.
The Permanent Secretary of the Ministry of Agriculture, Animal Industry and Fisheries, David Kasura Kyomukama, attributed the surge in coffee and cocoa export earnings to targeted government interventions and sustained sector support.
“We are seeing the impact of deliberate programmes under the coffee roadmap, including support for seedlings, extension services and farmer training. The government’s investment in quality assurance and market access under the Agricultural Value Chain Development Strategy is also bearing fruit,” he said.
How Banks Can Capitalize on this Export Boom through Trade Finance
This surge in agricultural exports presents a significant opportunity for banks in Uganda to expand their trade finance portfolios and contribute further to the country’s economic growth.
Banks can support coffee, cocoa, and tobacco exporters by offering tailored financing solutions such as pre-export financing to cover production costs and working capital loans to facilitate processing, packaging, and transportation, helping them meet increased demand, while also facilitating secure trade through Letters of Credit (L/Cs) and bank guarantees to mitigate risks and ensure smooth international transactions
Kyomukama added that cocoa, too, has emerged as a silent performer whose potential is now being unlocked.
“We have prioritized value crops like cocoa because of their high return on investment and growing demand worldwide. As the figures show, Uganda is positioning itself as a major player not just in Coffee but also in other high-value crops.” He emphasized.
Additionally, they can optimize cash flow across the supply chain through factoring services for immediate liquidity and reverse factoring to enable early payments to suppliers, ensuring a more efficient and resilient export ecosystem.
Rose Kayondo Nakayenga, the chief executive officer of Zigoti Coffee Works (ZICOFE), a major coffee exporter based in Mityana,said: “We’re finally seeing the rewards of investing in quality. At ZICOFFE, we’ve worked closely with smallholder farmers to improve post-harvest handling and processing. This kind of performance give us confidence to scale further. The international market is responding well to our speciality and commercial-grade coffee.”
Additionally, digital innovations by banks, such as online trade platforms and blockchain-enabled transactions, enhance efficiency, transparency, and security across the entire export value chain.
Banks can support coffee, cocoa, and tobacco exporters by collaborating with governments, agricultural groups, and international institutions, banks further support exporters through financial literacy programs and access to funding and guarantee schemes, ensuring a resilient and competitive export ecosystem.
Benefits for Banks and the Ugandan Economy
By actively supporting Uganda’s agricultural export sector through tailored trade finance solutions, banks can unlock significant growth opportunities while driving economic development. For instance, Stanbic Bank’s pre-export financing for coffee farmers has enabled increased production, generating higher interest income for the bank while expanding its agribusiness clientele. Similarly, Centenary Bank’s partnership with the Uganda Coffee Development Authority (UCDA) to provide working capital loans and L/Cs has strengthened relationships with exporters like Kawacom, boosting trade volumes.
These efforts not only increase bank revenue through fees and interest but also create jobs, as seen with ABSA’s supply chain finance program, which supported 5,000 smallholder cocoa farmers in Bundibugyo. By championing such initiatives, banks like DFCU (through its blockchain-powered trade platform) enhance transparency in tobacco exports, positioning themselves as key enablers of Uganda’s economic growth while reinforcing their reputational leadership in the financial sector.
In conclusion, Uganda’s surging agricultural exports present a golden opportunity for banks to play a pivotal role in fueling further growth. By providing innovative and accessible trade finance solutions, banks can empower exporters, strengthen the economy, and secure their own success in the process.