Gold has dethroned coffee as Uganda’s leading export commodity, driven by surging international prices and the country’s emergence as a regional trading center for the precious metal.
Uganda’s gold exports jumped 75.8% in 2025, reaching $5.8 billion compared to $3.3 billion the previous year, according to Bank of Uganda data released Tuesday. The meteoric rise signals a fundamental transformation in an economy that has relied on coffee exports for generations.
“The attractive gold prices have incentivised new entrants into the business, generating a significant volume of exports,” said Adam Mugume, the Bank of Uganda’s executive director for research and economic analysis.
The shift didn’t happen overnight. Several interconnected factors combined to create conditions that allowed gold to overtake coffee’s historic dominance in Uganda’s export portfolio.
1. Record International Gold Prices
Global gold prices surged more than 64% in 2025, the primary catalyst behind Uganda’s export boom. Geopolitical tensions worldwide drove investors toward safe-haven assets, pushing gold values to unprecedented levels.
This price appreciation meant that even similar export volumes translated into substantially higher revenue, making gold trading increasingly lucrative for Ugandan dealers and attracting fresh capital into the sector.
2. Uganda’s Strategic Position as a Regional Trading Hub
Unlike traditional gold-producing nations, Uganda generates little gold domestically. Instead, the country has positioned itself as a processing and trading center for gold shipped from neighboring countries, including eastern Democratic Republic of Congo, South Sudan and other regional sources.
This geographic advantage allows Uganda to capture value from the broader regional gold trade without requiring extensive domestic mining infrastructure.
3. Market Liberalization and New Market Entrants
The combination of soaring prices and Uganda’s role as a trading hub attracted numerous new dealers into the gold business.
This influx of market participants expanded the sector’s capacity to handle larger volumes of gold flowing through the country, creating a network effect that further strengthened Uganda’s position in the regional gold trade.
4. Infrastructure Investment and Industrial Development
Last year marked a milestone when Uganda inaugurated its first large-scale gold mine, a $250 million Chinese-owned project in eastern Uganda. While this facility alone doesn’t account for the export surge, it represents growing industrial capacity and signals increased international confidence in Uganda’s mining sector.
Such investments create spillover effects, including improved processing facilities, technical expertise and supply chain infrastructure.
5. Coffee Market Challenges
While gold exports surged, coffee—Uganda’s traditional export mainstay—faced its own headwinds. Coffee prices remained relatively stable compared to gold’s spectacular appreciation, and agricultural exports continue facing challenges including climate variability, production costs and international market competition. The contrast between coffee’s modest performance and gold’s explosive growth widened the gap between the two commodities.
The transition carries significant implications for Uganda’s economy. Gold exports now provide the country’s largest source of foreign exchange, crucial for maintaining currency stability and funding imports. However, the shift also raises questions about economic sustainability and vulnerability to commodity price fluctuations.
Unlike coffee, which supports millions of small-scale farmers across Uganda’s countryside, gold trading concentrates wealth among fewer dealers and doesn’t provide the same breadth of rural employment. The precious metal’s volatility also means export revenues could drop as quickly as they rose if international prices retreat.
Additionally, Uganda’s position as a regional gold trading hub rather than a major producer means the country captures processing and trading margins but doesn’t benefit from primary resource extraction revenues. This model requires careful regulatory oversight to prevent illicit flows and ensure proper taxation of gold passing through the country.
As Uganda navigates this new economic reality, policymakers face the challenge of maximizing benefits from gold trade while supporting coffee farmers who remain vital to rural livelihoods. The gold boom offers opportunities, but maintaining economic balance will require thoughtful management of both sectors.
