Uganda’s exports declined 8.3 percent in January 2024, says new report

KAMPALA, March 18, 2024 – In January 2024, Uganda exported merchandise worth US$ 565.4 million, which is an 8.3 percent reduction in export earnings, when compared with US$ 616.36mln earned in December 2023, according to the February 2024 Performance of the Economy Monthly Report released by the Ministry of Finance Planning and Economic Development [MOPED].

The MOFED report attributes the decline in the value of the exports mainly to lower export earnings from gold, beans, oil re-exports, and tobacco during the month.

“In comparison to the same month the previous year, merchandise exports grew by 34.1 percent from USD 421.55mln in January 2023 to USD 565.40mlnn in the same month this year. This was attributed to increased export earnings from gold, coffee, oil re-exports among others,” the report says.

Meanwhile, coffee export receipts during the month amounted to US$ 85.57mln, a 29.8 percent increase in value from US$ 65.94mln registered in December 2023. The increase was mainly on account of a rise in the average price from US$ 2.74 per kilo in December to US$ 2.96 per kilo in January 2024.

In addition, volumes of coffee exported in January 2024 increased by 20 percent from 0.40mln to 0.48mln.

However, when compared with the same month the previous year, earnings from coffee exports grew by 27.0 percent from USD 67.35mln in January 2023 to USD 85.57mln in January 2024. “The year-on-year increase in coffee exports was driven by the price increment from USD 2.27/kilo in January 2023 to USD 2.96/kilo in January 2024.”

According to the report, the price of Uganda’s coffee increased in tandem with higher global prices which have been driven by continued concerns over supply, especially in Indonesia and Vietnam. “The US Department of Agriculture notes that excessive rainfall has disrupted the cherry development stage and lowered yields in major Robusta-producing areas.

In Vietnam, factors such as decreased land, rising labour and fertiliser expenses, and farmers switching to alternative crops have caused a drop in production.

Italy maintained the highest market share for Uganda’s coffee exports absorbing 41.8 percent of our coffee. This was an increase when compared with its 39.5 percent market share the previous month. It was followed by Germany 13.4 percent, India 9.8 percent, Spain 5.3 percent and United States of America 4.4 percent.

Destination of Uganda’s exports

The EAC remained the top destination of Uganda’s exports in January 2024, accounting for 38.2 percent of the total market share. Among the EAC partners, Kenya received the largest share of Uganda’s exports, constituting 30.4 percent of the total exports to the region.

Following EAC, the Middle East and the European Union emerged as the second and third top destinations for Uganda’s exports, accounting for 26.4 percent and 17.5 percent respectively. Notably within the Middle East, the United Arab Emirates remained the leading destination, absorbing 97.1 percent of Uganda’s total exports to the region.

Imports

The value of merchandise imports decreased by 15 percent from US$ 886.24mln in December 2023 to US$ 753.54mln in January 2024. The report says this was due decrease was largely attributed to lower private sector imports particularly mineral products [excluding petroleum products], textile and textile products, machinery equipment, vehicles and accessories, among others. Excluding gold, imports grew by 6.9 percent from US$ 614.09mln to US$ 656.28mln.

On the contrary, comparison with the same month last year shows that merchandise imports grew by 17.8 percent from US$ 639.59mln in January 2023, to US$ 753.54mln in January 2024. “This increase was mainly driven by increased import volumes for mineral products [excluding petroleum products], vegetable products, animal, beverages, fats and oils, machinery equipment, vehicles and accessories, petroleum products, chemical related products, among others”. Excluding gold, imports grew by 9.3 percent from US$ 600.50mln to USD 656.28mln.

Uganda’s source of imports

Asia remained Uganda’s largest source of imports in January 2024, accounting for 48.4 percent of the total imports. Within Asia, China and India were the major contributors, accounting for 46.2 percent and 17.7 percent of imports from the region.

Other notable regions included the EAC, the Rest of Africa, and the Middle East, which accounted for 18.0 percent, 11.8 percent, and 10.4 percent of the total imports respectively. Within the EAC region, Tanzania and Kenya remained the major sources of Uganda’s merchandise imports, accounting for 62.1 percent and 36.4 percent of the total imports from the region respectively.

https://thecooperator.news/ugandas-exports-rose-17-6-percent-in-august/

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