Coffee drives Uganda’s trade surplus with EU, boosted by duty-free access

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Coffee remains Uganda’s leading export to the European Union (EU), helping the country achieve a trade surplus of €500m (sh2 trillion).

Accounting for 60% of Uganda’s agricultural exports to the EU, coffee plays a central role in the country's €2b (about sh8 trillion) bilateral trade with Europe. The EU’s duty- and quota-free market access, under the “Everything But Arms” scheme, has significantly supported this growth.

Speaking during Europe Day celebrations on May 8, 2025, at his residence in Kololo, Kampala city, EU Ambassador to Uganda Jan Sadek highlighted the deepening trade ties between Uganda and Europe: “Uganda’s exports to the EU increased by 58% to €1.25b (about sh5.1 trillion), creating a significant trade surplus of €500m with the EU,” Sadek said.

Europe Day celebrations on May 8, 2025, at the EU Ambassador's residence in Kololo. (Courtesy)

Europe Day, marked every May 9, commemorates the 1950 Schuman Declaration, a foundational moment for European unity and peace.

Uganda's main exports to the EU include coffee, tea, cotton, fish, flowers and gold. Uganda contributes 8% (206,500 tonnes) of the EU’s total annual coffee imports.

As Europe consumes roughly 40% of global coffee, demand is expected to rise by 4.5% between 2025 and 2034, driven by growing consumption in hotels, restaurants and cafés and changing lifestyles.

Sadek noted that the EU is one of Uganda’s largest sources of foreign direct investment and development assistance.

“Team Europe contributes over €700m (sh2.8 trillion) annually to Uganda’s development,” he said.

As part of this support, the EU and Denmark are working with aBi Development to strengthen Uganda’s agribusiness sector. The partnership is helping over 500,000 farmers meet the EU’s deforestation regulations by 2025 through initiatives such as farm mapping, climate-smart training, and access to finance.

Additionally, the €10m (sh40.5b) CLEAR Supply Chains project that is implemented by the ILO, FAO, UNICEF and International Trade Centre (ITC)—is addressing child labour in coffee-growing areas such as Kalungu, Masaka, and Manafwa districts.

Justice minister Norbert Mao, the event’s chief guest, praised the EU as a beacon of peace and co-operation.

“Europe is the most successful peace project in history,” Mao said. He said that despite being one of the most blood-soaked continents, Europe has transformed former enemies into allies.

Reflecting on Europe’s journey from royal conflicts to a political and economic union with a common currency, Mao emphasised that Uganda has much to learn from Europe's post-conflict resilience and political maturity.

He acknowledged Europe’s support in Northern Uganda’s recovery and welcomed its honest engagement. “Friends must be able to celebrate achievements and speak candidly when the line is crooked,” he said.

Mao reaffirmed Uganda’s commitment to resolving its internal and regional challenges. “Being in the Great Lakes region is not easy. We have projected military power not to dominate, but to bring peace where bullies threaten regional stability,” he added.