In April, Uganda's private sector showed increased activity, with the headline purchasing managers' index rising to 55, its highest in five months, according to the Bank of Uganda's business tendency survey. Financial services experienced their strongest growth ever, indicating strong confidence in the sector, despite ongoing fuel-driven cost pressures. However, the survey also suggested that the underlying momentum may be losing some of its earlier strength.

In February, Uganda's coffee export volumes increased significantly, with the country exporting 651,933 60-kilogram bags valued at $181 million, according to the Ministry of Agriculture, Animal Industry and Fisheries. This represents a 15 percent year-on-year increase in volumes and a 5.8 percent rise in earnings, despite a decline in global prices, which fell to an average of $4.63 per kilogram from $4.71 in January.

Uganda's electricity regulator has announced that power tariffs will remain largely unchanged for the second quarter of 2026, as a strengthening shilling has balanced out a slight increase in global fuel prices. The Electricity Regulatory Authority noted that the approved end-user tariffs for April to June reflect changes in macroeconomic factors, but ultimately maintain stable pricing. The Ugandan shilling appreciated against the US dollar, reducing pressure on costs associated with dollar-denominated electricity generation.

Uganda's manufacturers are facing challenges such as high production costs, limited access to long-term capital, reliance on imported inputs, and fragmented supply chains. To address these issues, they are advocating for enhanced collaboration across supply chains, innovative financing solutions, and increased investment in value addition, according to The Independent.

Uganda's inflation increased to 3 percent in April, up from 2.8 percent in March, primarily due to rising energy and transport costs, according to data from the Uganda Bureau of Statistics. Monthly prices rose by 0.6 percent, marking the fastest increase since February 2025, while food and core components showed contained price pressures.

Recent figures from the Uganda Bureau of Statistics (UBOS) indicate that Uganda's agriculture sector is experiencing significant growth, primarily driven by a surge in coffee exports, which have reached record levels and generated billions of dollars. This trend highlights the importance of coffee in the country's export performance, suggesting a reliance on this single crop for agricultural success.