In a dramatic shift in regional trade dynamics, South Sudan has overtaken Kenya to become Uganda’s largest export market.
According to the latest data from the Bank of Uganda, exports to South Sudan hit 55.9 million in January 2025—a staggering 5435.7 million.
The Democratic Republic of Congo (DRC) secured second place, with Uganda exporting $45.4 million worth of goods.
But it’s South Sudan’s meteoric rise that’s stealing the spotlight, signaling a major realignment in East Africa’s trade landscape.
What’s Driving South Sudan’s Demand?
South Sudan’s appetite for Ugandan goods is insatiable. Key exports include cement, sugar, fast-moving consumer goods (FMCGs), and cereals.
The country’s growing infrastructure projects and consumer demand are fueling this trade boom.
“The growth in trade with South Sudan is a game-changer for Uganda’s economy,” said Allan Ssenyondwa, manager of policy and advocacy at the Uganda Manufacturers Association.
“Our manufacturers are making significant inroads into the regional market, and this is just the beginning.”
Uganda’s exports to South Sudan have been growing at an annualized rate of 12.2% since 2018, reflecting deepening economic ties between the two nations.
Kenya’s Decline: A Temporary Blip or a New Trend?
Kenya’s slip to third place raises questions about the future of Uganda’s trade with its southern neighbor.
While the decline in January was marginal (1%), it underscores the need for Kenya to address trade barriers and enhance competitiveness.
Historically, Kenya has been Uganda’s gateway to regional and international markets. However, with South Sudan and the DRC stepping up, Uganda is diversifying its export base, reducing reliance on any single market.
DRC and Sudan: Rising Stars in Uganda’s Export Strategy
The DRC remains a strong contender, with 45.4 million in exports in January. Meanwhile, Sudan is emerging as a key player, with exports surging by 6315.2 million.
Coffee, tea, and spices are driving this growth, as Sudan cements its position as a leading coffee market for Uganda in Africa.
Why This Matters for Uganda
This shift is more than just a numbers game—it’s a testament to Uganda’s strategic push to diversify its export markets.
By tapping into the growing demand in South Sudan, the DRC, and Sudan, Uganda is reducing its economic vulnerability and creating new opportunities for local manufacturers.
Regional trade agreements and infrastructure projects, such as improved road networks and border facilities, have played a crucial role in facilitating this trade growth.
The Road Ahead
As South Sudan solidifies its position as Uganda’s top export market, the focus will be on sustaining this momentum.
Key challenges include ensuring consistent product quality, addressing logistical bottlenecks, and navigating political and economic instability in the region.
For Uganda, the message is clear: the future of trade lies in diversification. With South Sudan leading the charge, the country is well-positioned to strengthen its economic foothold in East Africa and beyond.
