Uganda’s Coffee Industry Rakes In US$ 167M, Boosts Economic Growth

Uganda’s coffee industry is experiencing a significant surge, with exports reaching unprecedented heights. According to a recent report from the Ministry of Agriculture, Animal Industry and Fisheries, coffee exports in February 2025 totaled 555,756 60-kilo bags, worth a staggering US$167.68 million, about Shs616.1 billion.

The report reiterates the remarks of East African economist Christopher Legilisho, who noted during the recently concluded Stanbic Bank Economic Insights Forum that coffee is one of the biggest drivers for Uganda’s economy.

“In the near term, we shall see strong coffee and gold exports in 2025 in Uganda. With oil exports forecasted for 2027, we believe this will balance out the significant importation rates,” Legilisho said during the recent Stanbic Bank Economic Insights Forum held in Kampala.

“Uganda’s economy is expected to grow by 6.5% to 6.7% in 2024–2025, driven by agriculture, services, and oil sector investments, with a potential growth rate of 7% to 7.5% in 2025, ” he added, emphasizing that coffee is of significant value in driving Uganda’s economic growth.

Discussing agricultural growth in 2025, Legilisho highlighted how favourable weather conditions have benefitted the coffee sector, noting that Uganda’s coffee export volumes are expected to rise.

Significant Increase in Exports

This represents a remarkable increase of 27.93% in quantity and 103.25% in value compared to the same month last year. The surge in exports is attributed to the prevailing high prices on the international market, prompting exporters to release their stocks.

Robusta and Arabica Exports on the Rise

The report indicates that Robusta exports increased by 25.32% in quantity and 97.39% in value, while Arabica exports saw a significant jump of 43.60% in quantity and 132.04% in value. The demand for Ugandan coffee is on the rise, driven by the high quality of the country’s coffee beans.

Global Coffee Prices Fuel Demand

The global coffee market is experiencing a surge in prices due to dry conditions in Brazil and Vietnam, the world’s largest producers of Arabica and Robusta coffee, respectively. This uncertainty in global coffee supply has created a favorable market for Ugandan coffee exporters.

Twelve-Month Export Figures

The twelve-month coffee export figures (March 2024-February 2025) reveal a total of 6.57 million bags worth US$1.72 billion, representing an increase of 6.99% in quantity and 70.71% in value compared to the previous year.

Economic Impact

The booming coffee sector is making a significant contribution to Uganda’s economic growth. The increased export earnings are expected to boost the country’s foreign exchange reserves, support economic development, and improve the livelihoods of coffee farmers and their communities.

Uganda’s coffee sector is experiencing a remarkable boom, driven by high global prices and increasing demand for the country’s high-quality coffee beans. As the sector continues to grow, it is expected to make a significant contribution to Uganda’s economic development and improve the livelihoods of coffee farmers and their communities.

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