KAMPALA, September 28, 2024 – Uganda’s export earnings for July 2024 reached US$ 785.03 million [about Shs 785 billion at the current exchange rate of 1USD: Shs 3700], marking a 9.2 percent increase from US$ 718.60mln in June 2024, according to the Performance of the Economy Monthly Report for August 2024 released by the Finance Ministry. This growth was largely fueled by higher earnings from coffee, mineral products, cotton, tobacco, and oil re-exports.
However, the report says exports excluding coffee and mineral products saw an 8.3 percent decline, dropping from US$ 307.35mln to US$ 282.00mln, indicating a downturn for many merchandise exports in July.
Coffee exports surged by 29.6 percent, rising from US$ 162.36mln in June to US$ 210.48mln in July, mainly due to increased volumes. “Coffee export volumes in July grew by 23.1 percent compared to June, partly due to the newly harvested robusta coffee from the Greater Masaka and South Western regions reaching the market,” the report states.
Italy remained the largest market for Uganda’s coffee exports, accounting for 40.7 percent of the total. Other significant markets included Germany [15.8 percent], Sudan [5.4 percent], India [5.3 percent], and the Netherlands [4.1 percent].
Notable export destinations also included the East African Community [EAC], European Union [EU], and Asia, which accounted for 26.5 percent, 21.8 percent, and 14.6 percent of total exports, respectively. Compared to July 2023, the EAC and Asia were the largest destinations, representing 39.7 percent and 22.5 percent of exports, followed by the EU and the Middle East at 15.7 percent and 11.2 percent, respectively.
Imports
The value of merchandise imports rose by 9.1 percent, increasing from US$ 966.53mln in June to US$ 1,054.36mln in July 2024. This increase was primarily driven by higher volumes of non-oil imports, particularly mineral products [excluding petroleum], base metals, machinery, vehicles, and various agricultural products.
Year-over-year, the import bill grew by 30.1 percent, up from US$ 810.32mln in July 2023 to US$ 1,054.36mln in July 2024, attributed to higher volumes of similar categories.
Origin of imports
Asia was the largest source of Uganda’s imports, accounting for 36.9 percent of the total in July 2024. Within Asia, China and India were the major contributors, responsible for 55.0 percent and 18.7 percent of imports from the region, respectively. Other notable sources included the Rest of Africa [24.4 percent], EAC [19.2 percent], and the Middle East [13.4 percent]. Within the EAC, Tanzania and Kenya were the leading sources, contributing 57.7 percent and 38.0 percent of regional imports.
Compared to July 2023, Asia continued to dominate as the largest source of imports, followed by the EAC, Middle East, and Rest of Africa at 24.7 percent, 18.9 percent, and 9.5 percent, respectively.
Trade balance with EAC
In July 2024, Uganda recorded trade surpluses with the EU [US$ 124.72mln] and the Middle East [US$ 96.94mln], while deficits were noted with Asia [US$ 264.63mln], Rest of Africa [US$ 221.68ml], and Rest of Europe [US$ 0.47mln].
Uganda achieved a surplus of US$ 3.99mln with EAC partner states, down from US$ 43.63mln the previous month. This decrease was due to a 10.9 percent drop in export earnings from the region alongside a 14.7 percent rise in imports.
On a country-specific basis, Uganda had surpluses with the DRC [US$ 65.50mln], South Sudan [US$ 44.00mln], Rwanda [US$ 17.19mln], and Burundi [US$ 5.44mln] in July 2024. However, deficits were recorded with Tanzania (US$ 104.87mln] and Kenya [US$ 21.48mln].
Compared to July 2023, exports to the EAC fell by 5.2 percent from US$ 219.78mln to US$208.40mln, largely due to declines in exports to South Sudan and Rwanda. Conversely, imports from the region increased by 1.3 percent, from US$ 200.03mln to US$ 202.62mln over the same period.
https://thecooperator.news/ugandas-annual-coffee-exports-hit-shs-5-trillion/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
Views: 3
