Ugandan Cocoa Chases Coffee, Earns Millions in Forex

1. Economic Performance & Export Rankings

Surging Growth: Cocoa has risen to become Uganda’s second-largest agricultural export after coffee, overtaking tea, fish, flowers, and maize.
Foreign Exchange Earnings: According to a Bank of Uganda report, cocoa beans earned the country over US$632 million in 2025, up from US$108.58 million by May 2025.
Global Standing: Uganda is currently the world’s 9th or 10th largest cocoa exporter, accounting for roughly 2.3% of global exports and producing about 74% of East Africa’s cocoa.
Top Export Standings:

2. Market Drivers & Global Context

Price Surge: Global prices spiked from US6 due to severe harvest shortages in West Africa (particularly Côte d’Ivoire and Ghana). Key Ugandan growing regions like Bundibugyo directly benefited.
Major Buyers: Ugandan raw cocoa is exported to Malaysia, Indonesia, the Netherlands, India, and Italy, with Malaysia alone purchasing US$250 million worth.

3. Challenges & Industry Perspectives

Farmer-Led Success: Agricultural advocate Nandala Mukoota notes that cocoa's rise has been driven primarily by individual farmers with minimal state support.
Regional Competition: While Uganda leads East Africa, Kenya has initiated massive cocoa planting drives (targeting 6.4 million hectares in regions like Kitale) which could threaten Uganda's position.
Raw Export Dependency: Approximately 90% of Uganda's cocoa is still exported in raw form, with local processed retail sales accounting for only US$8.3 million.
Strategic Goals: The government aims to locally process 80% of the country's cocoa into value-added products like cocoa liquor, butter, and powder to maximize foreign exchange retention.

Ugandan Cocoa Chases Coffee, Earns Millions in Forex

1. Economic Performance & Export Rankings

Surging Growth: Cocoa has risen to become Uganda’s second-largest agricultural export after coffee, overtaking tea, fish, flowers, and maize.
Foreign Exchange Earnings: According to a Bank of Uganda report, cocoa beans earned the country over US$632 million in 2025, up from US$108.58 million by May 2025.
Global Standing: Uganda is currently the world’s 9th or 10th largest cocoa exporter, accounting for roughly 2.3% of global exports and producing about 74% of East Africa’s cocoa.
Top Export Standings:

2. Market Drivers & Global Context

Price Surge: Global prices spiked from US6 due to severe harvest shortages in West Africa (particularly Côte d’Ivoire and Ghana). Key Ugandan growing regions like Bundibugyo directly benefited.
Major Buyers: Ugandan raw cocoa is exported to Malaysia, Indonesia, the Netherlands, India, and Italy, with Malaysia alone purchasing US$250 million worth.

3. Challenges & Industry Perspectives

Farmer-Led Success: Agricultural advocate Nandala Mukoota notes that cocoa's rise has been driven primarily by individual farmers with minimal state support.
Regional Competition: While Uganda leads East Africa, Kenya has initiated massive cocoa planting drives (targeting 6.4 million hectares in regions like Kitale) which could threaten Uganda's position.
Raw Export Dependency: Approximately 90% of Uganda's cocoa is still exported in raw form, with local processed retail sales accounting for only US$8.3 million.
Strategic Goals: The government aims to locally process 80% of the country's cocoa into value-added products like cocoa liquor, butter, and powder to maximize foreign exchange retention.

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