Uganda’s export earnings drop 23 Percent in June

KAMPALA, August 27, 2024: Uganda’s export earnings for June 2024 totaled US$ 718.60 million, marking a 23.6 percent decrease from US$ 940.93mln in May 2024, according to the Performance of the Economy Monthly Report for July 2024 released by the Ministry of Finance, Planning, and Economic Development [MOFED].

The report attributes the decline in export earnings mainly to a drop in mineral product exports. However, excluding mineral products, exports rose by 5.1 percent, increasing from US$ 446.85mln in May to US$ 469.72mln in June, driven by higher coffee receipts.

Meanwhile, coffee export earnings grew by 27.5 percent, reaching US$162.36mln in June 2024, up from US$ 127.30mln in May 2024. This increase was fueled by both higher export volumes and rising international coffee prices.

According to the report, the boost in coffee export volumes was due to improved Robusta coffee yields from the Greater Masaka and South Western regions of Uganda. Additionally, international coffee prices rose because of reduced coffee supply from Vietnam and Indonesia, which faced poor harvests.

Italy remained the largest market for Uganda’s coffee exports, accounting for 41.96 percent of the total coffee exports in June 2024. Other significant markets included Germany, India, Sudan, and Spain, which accounted for 10.55 percent, 7.41 percent, 6.87 percent, and 5.40 percent of the total coffee exports, respectively.

Compared to June 2023, export earnings increased by 11.8 percent, from US$ 642.90mln to US$ 718.60mln in June 2024, primarily due to higher earnings from coffee and electricity exports.

Destination of Uganda’s exports

The East African Community [EAC] emerged as the largest destination for Uganda’s exports, accounting for 32.5 percent of total exports in June 2024. Within the EAC, Kenya, the DRC, and South Sudan were the top recipients, receiving 30.0 percent, 28.1 percent, and 21.8 percent of Uganda’s exports to the region, respectively.

Other notable destinations included the Middle East, the European Union, and Asia, which accounted for 24.5 percent, 18.2 percent, and 18.0 percent of total exports, respectively.

In comparison to June 2023, Asia and the EAC were the largest destinations for Uganda’s exports, accounting for 33.2 percent and 33.1 percent, respectively. They were followed by the Middle East and the European Union, with 13.9 percent and 12.9 percent, respectively.

Imports

The value of imports declined by 6.5 percent, from US$ 1,033.50mln in May 2024 to US$ 966.53mln in June 2024. The report attributes this decline to lower volumes of formal private sector non-oil imports, including vegetable products, animal products, beverages, fats & oils, and mineral products [excluding petroleum products].

However, compared to June 2023, Uganda’s import bill increased by 7.6 percent, from US$ 898.28mln to US$ 966.53mln in June 2024. This growth was largely due to higher import volumes of petroleum products, chemicals and related products, and mineral products.

Origin of Uganda’s imports

Asia was the largest source of Uganda’s imports, accounting for 34.6 percent of total imports in June 2024. Within Asia, China, and India were major contributors, accounting for 46.0 percent and 27.5 percent of the total imports from the region, respectively.

Other significant sources of Uganda’s imports included the EAC, the Rest of Africa, and the Middle East, which accounted for 19.5 percent, 17.2 percent, and 16.8 percent of total imports, respectively. Within the EAC, Tanzania and Kenya were the leading sources, accounting for 54.1 percent and 42.1 percent of Uganda’s imports from the region, respectively.

In comparison to June 2023, Asia remained the largest source of Uganda’s imports, accounting for 36.9 percent of the total. This was closely followed by the EAC, the Middle East, and the Rest of Africa, with 26.9 percent, 15.3 percent, and 10.5 percent, respectively.

https://thecooperator.news/uganda-cited-as-africas-coffee-exports-rise-44-percent-in-may-2024/