
Uganda's Coffee Export Surge Delivers Record-Breaking Earnings in May
Uganda achieved a significant leap in coffee export earnings and volumes during May, driven by a strong harvest in key growing regions and sustained high global prices. The May coffee shipments reached 793,445 bags of 60 kg—an increase of 44% year‑on‑year—while export earnings soared to US$243.95 million, marking a 92% rise compared to May 2024.
The Ministry of Agriculture, Animal Industry and Fisheries attributes the performance to robust output from the main harvest in Masaka and the southwestern districts, coupled with supportive international market conditions. Robusta, which accounted for around 87% of the total volume, reached 691,176 bags, valued at US$203.5 million. Arabica exports of 102,269 bags generated US$40.45 million—reflecting a near 110% surge in value year‑on‑year.
Despite a slight dip in global prices in May due to improved output from Brazil, Uganda managed to sustain earnings growth through volume expansion. May's average export price stood at US$5.12 per kilogram, just marginally below April's US$5.15, but significantly higher than May 2024's US$3.83.
ADVERTISEMENT
Over the past 12 months—from June 2024 to May 2025—Ugandan coffee exports totalled 7.43 million bags, generating an impressive US$2.09 billion. This performance represented increases of 22% in volume and 94% in value relative to the previous year.
The government has pursued a proactive strategy to bolster production. A 15‑year agroindustrialisation plan unveiled in the State‑of‑the‑Nation address emphasises high‑yield seedlings, post‑harvest improvements, irrigation expansion and credit support for commercial farmers. These measures, coupled with the integration of UCDA's functions into the Ministry of Agriculture, underpin the structural push to upscale the sector.
Uganda remains one of Africa's leading coffee exporters, trailing Ethiopia, and coffee accounts for nearly 20% of its export revenue. In the May crop, European countries continued to dominate the demand landscape—with Italy, Germany and Spain among the main markets—though exports to Sudan, Algeria and other African destinations also showed clear growth.
This rise in coffee export receipts has contributed to macro‑economic resilience. April data showed Uganda's merchandised export earnings rose to US$1.11 billion, with coffee alone contributing over US$214 million—a jump of 153% compared with April 2024. That month, the trade deficit narrowed sharply, falling from US$303 million to US$127 million.
According to the USDA's FAS Nairobi report, production is projected to grow modestly through the 2025/26 marketing year, with estimates of green‐bean output for 2024/25 at 6.7 million bags and anticipated growth to 6.88 million bags in 2025/26, supported by good weather and improved crop management.
One of the sector's evolving trends is the rise of women-led initiatives. In Sironko district, the Bayaaya Specialty Coffee cooperative has expanded membership to over 600 women—about 75% of participants—by offering incentives for female growers and aiming to rebalance gender dynamics in the value chain. The group's structure promotes shared decision‑making, enabling women to invest in household expenses and gain autonomy.
Given the sustained global demand, strong yield improvements, supportive government policies and growing diversification among exporters and producers, Uganda appears poised to further strengthen its coffee sector contributions. The country has ambitions to scale annual coffee export value from the current US$2 billion towards a target range of US$4 billion. Continued monitoring will be needed around price volatility, global supply dynamics, and compliance with sustainability regulations, particularly in European markets.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Fintech News ME
2 hours ago
- Fintech News ME
UAE Poised to Become MENA's Stablecoin Powerhouse
The United Arab Emirates (UAE) is poised to become a regional leader in digital assets and stablecoin adoption. This is supported by progressive regulation, robust digital infrastructure, and booming crypto usage, according to a new report by PwC and Abu Dhabi-headquartered digital assets infrastructure provider Fuze. The report, released in May, looks at the state of digital asset and stablecoin adoption in MENA, highlighting the UAE's growing prominence, and sharing emerging trends and opportunities. According to the report, the UAE ranks third in digital asset transaction volume in MENA, with US$34 billion recorded in the year ending June 2024 and a 30% adoption rate. It follows Turkey with US$170 billion and a 52% adoption rate, and Saudi Arabia with US$47 billion and a 20% adoption rate. In addition to an active crypto market, the UAE also benefits from forward-thinking regulators. In particular, the Payment Token Services Regulation, introduced by the Central Bank of the UAE (CBUAE) and effective from August 2024, establishes a comprehensive framework for regulating stablecoins and payment token services. The regulation mandates licensing for issuers, distributors, and custodians, and requires full fiat reserve backing, par value redemption, as well as adherence to strict governance, risk, and anti-money laundering (AML) and countering the financing of terrorism (CFT) standards. Though compliance to the Payment Token Services Regulation is complex and resource-intensive, the regulation delivers increased credibility and long-term growth potential for firms able to meet its high standards. It's also significant because it represents a formal acknowledgment and acceptance of digital tokens intended to be used as payment instruments. CBUAE's Payment Token Services Regulation, paired with licensing regimes from Dubai's Virtual Asset Regulatory Authority (VARA), the Financial Services Regulatory Authority (FSRA), and the Dubai Financial Services Authority (DFSA), are positioning the UAE as the leading jurisdiction for the development and adoption of payment tokens, particularly dirham-denominated ones. This progress is underscored by a number of recent developments. In December 2024, AE Coin secured the final approval from the CBUAE, becoming the first fully licensed dirham-backed stablecoin in the UAE. AE Coin aims to provide an instant, secure, stable, innovative, low-cost, and efficient payment method designed for the digital economy. In February 2025, DFSA approved Circle's USDC and EURC stablecoins as recognized crypto tokens. The development marked the first instance of stablecoins being approved under the DIFC's crypto token regime, allowing USDC and EURC to be incorporate into digital asset services, payments, treasury management, and other financial applications. Most recently, Abu Dhabi sovereign wealth fund ADQ, conglomerate IHC, and the UAE's biggest lender by assets First Abu Dhabi Bank (FAB), unveiled plans to launch a new stablecoin backed by dirhams. The stablecoin, which will be fully regulated by the UAE's central bank, will be issued by FAB subject to regulatory approval, the organizations said. The potential of stablecoins in MENA In the UAE and the broader MENA region, stablecoins and payment tokens hold significant potential to enhance financial services by enabling faster and cheaper cross-border payments, more efficient treasury operations, and the development of new, innovative financial products. The UAE, a leading financial and trade hub, is expected to benefit from stablecoin-powered cross-border payments. These digital assets have the potential to streamline international payments by offering near-instant transfers at lower costs than traditional SWIFT channels, while maintaining compliance with the CBUAE's AML/CFT regulations. This would benefit both businesses and individuals seeking efficient overseas money transfers, while giving banks an edge and fintech over conventional remittance services. As a major global trade centre, the UAE also stands to benefit from the use of stablecoins in trade finance. In this application, smart contracts and tokenized collateral are set to streamline traditional processes such as letters of credit and supply-chain financing, reducing manual intervention and operating costs. They also promise faster settlement, and enhanced transparency. Banks in the region can also use stablecoins for faster, round-the-clock settlements among themselves and with partners and suppliers, while multinational corporations can manage liquidity more efficiently across currencies and jurisdictions. Finally, stablecoins open the door to a new wave of innovation and commercial opportunities. These range from consumer-facing wallets and micro-payment solutions for e-commerce to collateralized lending products. Banks in the region also have an opportunity to pioneer Sharia-compliant products enabled by stablecoins, such as stablecoins backed by Sukuk (Islamic bonds) or integrated into Murabaha (Islamic financing structure). These products have the potential to unlock access to digital assets for the Islamic population, while also attracting investors who seek alternatives to interest-based transactions. Stablecoins are digital currencies designed to maintain a stable value by being pegged to a reserve asset like a fiat currency. These digital currencies offer the speed and efficiency of blockchain technology without the volatility of traditional cryptocurrencies, enabling faster, cheaper, and more secure transactions. This makes them particularly promising for use cases including cross-border payments and settlements. The Citi Institute estimates that the global stablecoin market could soar to US$3.7 trillion by 2030, marking an increase of nearly 1,500% from its total value of US$234 billion in March 2025.


Arabian Post
4 hours ago
- Arabian Post
IMF approves $1.33 billion to support Bangladesh economy
By Saifur Rahman The International Monetary Fund (IMF) has approved the allocation of US$1.33 billion to Bangladesh to support the country's economy that witnessed slowdown since the change of government in August 2024. The allocation is part of the US$4.7 billion combined support package authorised by the IMF in January 2023 under the US$3.3 billion Extended Credit Facility (ECF) and Extended Fund Facility (EFF) and US$1.4 billion Resilience and Sustainability Facility (RSF), the International Monetary Fund (IMF) said. The decision comes following the conclusion of the combined third and fourth reviews of Bangladesh's arrangements under the ECF, EFF and RSF that approved an extension, augmentation and re-phasing of access funds. However, the latest allocation exceeds the total ECF and EFF package by US$800 million, from US$3.3 billion to US$4.1 billion and brings the total allocation to US$5.5 billion. 'The augmentation approved by the [IMF] Executive Board today brings the total financial assistance under the ECF and EFF arrangements to US$ 4.1 billion, alongside concurrent RSF arrangements of US$1.4 billion. The enlarged enhanced ECF/EFF is aimed at restoring macroeconomic stability, promoting inclusive growth, and protecting the vulnerable. The RSF arrangement has secured fiscal space needed to build resilience against climate risks,' IMF said in a statement. Bangladesh's macroeconomic challenges have increased since the popular uprising in the summer of 2024, which led to the ouster of the previous government, IMF observed in its latest report. 'The timely formation of an interim government has helped stabilise political and security conditions, fostering a gradual return to economic stability. However, the economic outlook has worsened due to persistent political uncertainty, continuation of tighter policy mix, rising trade barriers, and increasing stress in the banking sector,' it said. Bangladesh's Gross Domestic Product (GDP) has grown to US$473.63 billion in the financial year ending June 30, 2025 from US$413.90 billion in the last financial year, IMF data shows. The country's GDP growth rate declined from 7.1 per cent in the 2022 financial year to 3.8 percent this year. However, IMF projects the GDP growth to accelerate to 5.4 percent next year and 6.2 percent in the 2027 financial year. After a fall in real GDP growth to 4.2 percent in FY24 from 5.8 percent in FY23, economic activity slowed further in FY25, the World Bank recently said in its periodic economic update on Bangladesh. 'The economy continues to face significant challenges, including investment moderation, elevated inflation and vulnerabilities within the financial sector. However, external sector pressures have apparently eased, with robust growth in remittance inflows and exports bolstering the current account balance in FY25,' the World Bank said. 'Real GDP growth is projected to further moderate to 3.3 percent in FY25 due to declining private and public investment. Political uncertainty and rising costs associated with borrowing and inputs are expected to constrain private investment growth and keep industrial growth subdued.' Public investment will decline as the government reduces capital expenditure in FY25. The fiscal deficit is expected to remain under 5 percent of GDP in the medium term, with capital expenditure increasing only gradually. Inflation is likely to remain elevated in the near term, it observed.. Nigel Clarke, IMF Deputy Managing Director, said, 'Bangladesh's economy continues to navigate multiple macroeconomic challenges. Despite a difficult environment, programme performance has remained broadly on track, and the authorities are committed to implementing necessary policy actions and reforms. The IMF-supported programmes are helping safeguard macroeconomic stability and protect the most vulnerable, while accelerating reforms to support resilient and inclusive growth. 'Near-term policies should prioritise rebuilding external resilience and reducing inflation. The authorities' recent steps to implement a new exchange rate regime and include revenue-enhancing measures in the FY2026 budget are welcome. A balanced policy mix—anchored in maintaining a tight monetary policy stance, greater exchange rate flexibility, and revenue-based fiscal consolidation—will support efforts to restore both external and internal balances.' Efforts to raise tax revenues and rationalise expenditures—including through subsidy reduction—are critical for creating the fiscal space needed to strengthen social, development, and climate initiatives. Sustained progress in reducing government subsidies to a fiscally sustainable level, along with enhanced public financial management, is essential to improving spending efficiency and mitigating fiscal risks, Nigel Clarke observed. 'Financial sector policy should prioritise safeguarding stability and addressing rising vulnerabilities. Developing a comprehensive, sequenced strategy to guide reforms is an immediate priority, followed by the swift implementation of the new legal frameworks to enable orderly bank restructuring while protecting small depositors,' he said. 'Sustained structural reforms are essential for Bangladesh to achieve its goal of attaining upper middle-income status. Key priorities include diversifying exports, attracting greater foreign direct investment, strengthening governance, and enhancing data quality.' Bangladesh's real GDP is expected to rise gradually in the medium term, if backed by critical reforms. Inflation is expected to gradually subside in the medium term on the back of tight monetary policy, fiscal consolidation and easing import restrictions on key food commodities. Rising trade uncertainties are expected to put pressure on the external sector. 'Bangladesh will need bold and urgent reforms to bolster the financial sector, facilitate trade, and enhance domestic revenue mobilisation,' said Gayle Martin, World Bank Interim Country Director for Bangladesh. Dhruv Sharma, World Bank Senior Economist, added, 'The risks to the outlook are on the downside as uncertainties related to trade, persistent inflationary pressure, weak demand in Bangladesh's major export markets, and intensifying financial sector vulnerabilities could weigh on growth.' Also published on Medium. ADVERTISEMENT Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.


Gulf Today
4 hours ago
- Gulf Today
Airlines face fresh upheaval as Gulf countries shut airspace
Airlines were on fresh alert late on Monday after the UAE, Qatar, Bahrain and Kuwait closed their countries' airspace temporarily as Iran attacked the Al Udeid US military base in Doha, the latest upheaval to air travel in the Middle East. On Sunday, the US attacked key Iranian nuclear sites and Tehran vowed to defend itself, prompting many carriers to suspend more flights to the Middle East. Explosions were heard over Qatar's capital Doha on Monday evening, shortly after a Western diplomat cited a credible Iranian threat against the US-run Al Udeid air base in Qatar state since midday. United Arab Emirates airspace was also closed based on flight paths and air traffic control audio, according to a post on X by the air traffic tracking website Flightradar24 on Monday. Dubai Flightradar24 showed virtually no air traffic in the Gulf and over Qatar and Bahrain about 1735 GMT in what earlier in the day had been a busy space filled with commercial flights. Carriers had been likely avoiding airports in UAE and Qatar and, to a lesser extent, Kuwait, Bahrain and Saudi Arabia, due to concerns that Iran or its proxies will target drone or missile attacks on US military bases in these countries, aviation risk consultancy Osprey Flight Solutions said. The conflict has already cut off major flight routes, with the usually busy airspace stretching from Iran and Iraq to the Mediterranean largely void of commercial air traffic since Israel began strikes on Iran on June 13. Airlines have been diverting, cancelling and delaying flights through the region due to airspace closures and safety concerns. Kuwait Airways suspended on Monday its flight departures from the country. Three Air India flights headed to Doha were diverted to other airports due to the airspace closing, according to a source and data from Flightradar24. Up to 150 flights had been scheduled in and out of Doha on Monday, the data showed. IAG's Spanish airline Iberia scrapped an earlier plan to resume flights to Doha on Tuesday after the latest airspace closures. SUSPENSIONS Earlier in the day, airlines had been weighing how long to suspend flights for. Finnair was the first to announce a prolonged suspension of flights to Doha, with cancellations until June 30. Leading Asian carrier Singapore Airlines, which described the situation as "fluid", moved to cancel flights to Dubai through to Tuesday, having previously cancelled only its Sunday service. Air France KLM, IAG-owned Iberia and British Airways, and Kazakhstan's Air Astana all cancelled flights to either Doha or Dubai both on Sunday and Monday. Air France also cancelled flights to Riyadh and said it would suspend flights to and from Beirut, Lebanon until Wednesday included. With Russian and Ukrainian airspace also closed to most airlines due to years of war, the Middle East had become a more important route for flights between Europe and Asia. Amid missile and air strikes during the past 10 days, airlines have routed north via the Caspian Sea or south via Egypt and Saudi Arabia. Added to increased fuel and crew costs from these long detours and cancellations, carriers also face a potential hike in jet fuel costs as oil prices rise following the US attacks. Australia-based Flight Centre Travel Group said it is getting a small number of customer requests to route journeys to Europe away from Middle Eastern hubs. "The most common transfer hubs that we're seeing requested are Singapore, Hong Kong, China, Johannesburg, or even direct between Perth and London," said Graham Turner, CEO of Australia-based Flight Centre Travel Group. AIRSPACE RISKS Proliferating conflict zones are an increasing operational burden on airlines, as aerial attacks raise worries about accidental or deliberate shoot-downs of commercial air traffic. GPS interference around political hotspots, where ground-based GPS systems "spoof" or broadcast incorrect positions which can send commercial airliners off course, are also a growing issue for commercial aviation. Flightradar24 told Reuters it had seen a "dramatic increase" in jamming and spoofing in recent days over the Persian Gulf. SkAI, a Swiss company that runs a GPS disruption map, said late on Sunday it had observed more than 150 aircraft spoofed there in 24 hours. Safe Airspace, a website run by OPSGROUP, a membership-based organisation that shares flight risk information, said US attacks on Iran's nuclear sites could heighten the threat to American operators in the region. This could raise additional airspace risks in Gulf states like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, it said. In the days before the U.S. strikes, American Airlines suspended flights to Qatar, and United Airlines and Air Canada did the same with flights to Dubai. They have yet to resume. Reuters