Gold has officially dethroned coffee as Uganda’s primary export commodity, marking a significant transformation in the country’s economy. Fueled by rising international gold prices and Uganda’s strategic positioning as a regional gold trading hub, gold exports surged 75.8% in 2025, reaching a remarkable $5.8 billion, compared to $3.3 billion the previous year, according to data from the Bank of Uganda.
This dramatic shift underscores a growing diversification in Uganda’s export portfolio, traditionally dominated by coffee. Several factors have contributed to this transformation, which has major implications for Uganda’s economic future.
1. Record International Gold Prices
The global surge in gold prices, which rose by over 64% in 2025, was the primary driver behind this shift. With geopolitical tensions worldwide, investors flocked to gold as a safe-haven asset, which significantly boosted Uganda’s revenue from gold exports.
The price surge meant that even with stable export volumes, Uganda earned substantially more from gold, making the sector increasingly attractive to local traders and investors.
2. Uganda’s Strategic Role as a Regional Gold Trading Hub
While Uganda does not produce a significant amount of gold domestically, the country has established itself as a regional trading and processing center. Gold from neighboring countries, including South Sudan and the Democratic Republic of Congo, passes through Uganda, allowing the country to capture value from the broader regional gold trade.
This strategic positioning has been essential in Uganda’s rise in the global gold market, particularly as a processing center rather than a major producer.
3. Liberalized Market and New Market Entrants
The combination of high global prices and Uganda’s position as a gold trading hub has attracted new market participants, expanding the country’s gold sector. This influx of traders and dealers has created a thriving ecosystem, increasing the volume of gold passing through Uganda and strengthening its role in regional commerce.
4. Infrastructure Investments and Industrial Growth
In recent years, Uganda has seen growing investments in its mining and processing industries. A milestone achievement came in 2025 with the inauguration of the first large-scale gold mine in the country, a $250 million project funded by Chinese investors. This mine represents a significant step toward increasing Uganda’s domestic gold production, contributing to the expansion of its mining sector.
Such developments not only improve industrial capacity but also bolster Uganda’s global standing in gold trade.
5. Challenges in the Coffee Sector
While gold exports soared, the coffee sector, which has historically been Uganda’s cornerstone, faced challenges. Coffee prices remained relatively stable in comparison to gold’s meteoric rise. The coffee industry continues to struggle with climate variability, rising production costs, and increasing competition in the international market. These factors have led to a widening gap between gold’s exceptional growth and coffee’s more modest performance.
Economic Implications and Future Outlook
Gold’s rise as Uganda’s top export earner has several economic implications. On the one hand, gold exports now represent the country’s largest source of foreign exchange, playing a key role in stabilizing the currency and funding imports. On the other hand, the gold boom raises concerns about the sustainability of Uganda’s economic model, particularly in terms of its vulnerability to fluctuations in commodity prices.
Unlike coffee, which supports millions of small-scale farmers, gold trading is concentrated among fewer dealers, limiting its impact on rural employment. Moreover, Uganda’s role as a regional processing hub rather than a large-scale producer means the country benefits mainly from trading and processing margins, without the direct revenue from resource extraction.
Policymakers now face the challenge of balancing the growth of the gold sector with the support needed for coffee farmers who are essential to Uganda’s rural economy. The gold boom offers exciting opportunities, but its volatility underscores the need for strategic planning and regulation to ensure that Uganda’s economic progress remains sustainable.
This shift marks a new era for Uganda’s economy, where gold is now at the forefront of its export sector, but it also prompts a rethinking of how the country can continue to diversify its resources and support its agricultural base.
