EAC still top destination for Uganda’s exports

Maize is among Uganda's top earning export commodities to Kenya (PHOTO/ FILE)

MARTIN LUTHER OKETCH  KAMPALA. The East African Community was top destination for Uganda’s exports in April 2023, accounting for 39.3 percent of the total market share. 

In the performance of the economy report for May 2023, the Ministry of Finance noted Kenya, Congo and South Sudan were the top three destinations of Uganda’s exports to EAC, taking up 35.7 percent, 25 percent and 21.3 percent, respectively. 

“Some of the top earning export commodities to Kenya during the month were animal products particularly day old chicks, milk, maize, fermented black tea and sugar,” the report said. Uganda, the report noted, registered a surplus of $43.01m (Shs159b) with South Sudan, which is Uganda’s third top export destination in the region. 

Kenya remains Uganda’s main trade partner in the region. However, Uganda registered a deficit with Burundi for the first time since December, 2020 on account of the importation of mineral products and unprocessed robusta coffee from Burundi.

The report also noted that Middle East and Asia were the second and third top destinations, taking up 25.3 percent and 19.1 percent of Uganda’s total exports, respectively. 

The resumption of exportation of Gold products resulted in a trade surplus with the Middle East.The report also noted that the value of merchandise export in April 2023 increased by 59.3 percent compared to April 2022, mainly due to higher earnings from maize and mineral exports. 

“Increase in exports of mineral products follows the resumption of gold exportation that was on a halt the previous financial year,” the report reads in part, noting, that merchandise export receipts, however,  declined to $538.8m  (Shs2 trillion) from $681m (Shs2.5 trillion) in March, representing a 20.9 percent decline due to lower receipts from exports of coffee, mineral products and maize. 

Receipts from mineral products declined by 25.1 percent partly due to lower volumes of gold exported while earnings from maize declined by 42.9 percent, following lower export volumes. 

Earnings from coffee exports decreased by 16.1 percent due to lower export volumes, which resulted from a drought and reduced exports to Sudan due to an ongoing war.   

Prices of coffee are expected to be volatile due to an anticipated increase in output from Brazil. During the period, mercahandise worth $779.66m was imported, representing a decline of 15.1 percent compared to the $918.74m in March. Asia continued to be the largest source of Uganda’s imports, accounting for 21.4 percent. 

China and India accounted for 70.7 percent of imports from Asia. Asia was followed by EAC and the Rest of Africa, which accounted for 26.6 percent and 18 percent, respectively. Within the EAC, Tanzania, Kenya and DRC contributed 47.3 percent, 32.3 percent and 14.5 percent, respectively.