KAMPALA, October 17, 2023 – Uganda’s exports in August 2023 fetched the country US$ 669.88 million, an increase of 17.6 percent from US$ 569.78mln earned in the month earlier, the Ministry of Finance says in its latest Performance of the Economy Report.
The report covering the month of September 2023 mainly attributes the growth in the country’s exports to increased export earnings from gold and coffee during the month.
According to the report, coffee export receipts during the month of August 2023 amounted to US$ 121.64mlnn. “This is the highest ever amount received from coffee exports in a single month. This represents a 15.9 percent increase compared to the US$ 104.99mln receipts the month before,” says the report.
The report adds: “This increase was partly on account of the good crop harvest in the South-Western region and good prices on the global market which prompted exporters to release their stock.”
Compared to the same month last year, export receipts grew by 31.9 percent from US$ 507.97mln in August 2022 to US$ 669.88mln in August 2023, mainly driven by increased earnings from gold, coffee, maize, and oil re-exports among others in August 2023.
Destination of exports
The biggest share of Uganda’s exports during the month of August 2023 went to the East African Community [EAC] Partner States, which accounted for 34.7 percent of the exports, followed by the Middle East with 22.6 percent, Asia with 20.3 percent and the European Union at 12.5 percent of the total exports.
On a country-specific level, the report says the United Arab Emirates remained Uganda’s largest destination of exports during the month accounting for 21.9 percent of the total value of merchandise exported.
Other notable countries were India, South Sudan, and Kenya with 14.9 percent, 7.7 percent, and 6.7 percent respectively of the total value of goods exported during the month, says the report.
Uganda’s imports increased by 25.7 percent
According to the report, during August 2023, Uganda imported goods worth US$ 1,071.93mln, a 25.7 percent increase from the import bill of US$ 853.06mln in July 2023. “This increase was mainly in form of formal private sector imports during the month,” says the report.
The report says the major drivers for the increased import bill were mineral products [gold], wood and wood products, petroleum products and machinery equipment, vehicles and accessories which grew by 65.6 percent, 42.1 percent, 28.5 percent, and 12.8 percent respectively during the month.
According to the report, Uganda has one of the best gold refineries in the region which attracts business people dealing in gold from the region to bring their gold for processing, thus explaining the increasing amount of gold imports.
Compared to August 2022, the import bill grew by 30.2 percent from US$ 822.99mln to US$ 1,071.93mln in August 2023 mainly on account of an increase in the importation of mineral products and machinery equipment, vehicles & accessories between the two months.
Origin of imports
Asia remained Uganda’s biggest source of imports in August 2023, accounting for 33.3 percent of all imports for the month. “This was followed by the EAC, Middle East and the Rest of Africa accounting for 27.7 percent, 19.4 percent and 10.8 percent respectively.”
At a country-specific level, Tanzania and China were Uganda’s largest sources of imports, accounting for 18.6 percent and 17.0 percent of the total imports during the month, says the report.
Other notable sources included the United Arab Emirates, Kenya, and India accounting for 14.7 percent, 8.1 percent, and 7.3 percent respectively.
Uganda’s trade balance region
For the second month in a row, the report says, Uganda traded at deficit with all regions except the European Union with which she had a trade surplus of US$ 22.9mln as the amount of coffee exported to the region increased in this period. The largest trade deficit was registered with Asia [US$ 220.93 18mln], followed by EAC [US$ 64.41mln], Rest of Africa [US$ 64.97mln], and the Middle East [US$ 55.94mln].
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