Uganda’s exports to Rwanda fall to Shs328m
Whereas Covid-19 could have presented new challenges the continued closure of the Rwandan border is a serious problem to Uganda’s exports. Photo | File
What you need to know:
- Uganda exports mostly animal, vegetable fats and oils and cleavage products to Congo. Other commodities include sunflower-seed, safflower or cotton-seed oil, and fast consumer goods.
Uganda’s exports to Rwanda have fallen to a paltry Shs328m, explaining the damage caused by the yet to be resolved border dispute.
This is the lowest Uganda has fetched from its exports to Rwanda among which include still and metal rollings, cement, milk personal care and house hold items and milk.
According to data from the Central Bank, Uganda exported one of its lowest volumes of goods to Rwanda, previously one of its largest export destination.
In June, exports fell to Shs328m compared to Shs52b that the country had fetched during the same time last year.
It is not clear if the drastic drop was a result of Covid-19 restrictions. However, a border dispute between Uganda and Rwanda that has remained unresolved for two years now had created a trade standoff, forcing Uganda’s export receipts to drop by at least by 81 per cent.
For instance, in May 2019, Uganda’s earnings from Rwanda fell to $2.64m (Shs9.9b) down from $14.51m (Shs54.7b) in February.
This had been the lowest Uganda had ever earned from Rwanda but the Shs328m receipts will go down as a big blow to the country’s export market.
However, Uganda’s exports to other countries within the East African, despite Covid-19-related disruptions, according to the Central Bank grew making up for the lost market in Rwanda.
During June, according to Bank of Uganda data, Uganda has managed to increase its exports to Kenya, South Sudan, Burundi and Tanzania.
For instance, export receipts to Kenya in June increased to $33.4m (Shs122b) up from $27.8m (Shs101b) earned in May.
Kenya mainly imports agricultural commodities from Uganda, key among them maize and vegetables but also processed products such as sugar and milk.
However, there has been some challenges with the Kenyan market, especially in regard to sugar and milk.
Exports to South Sudan soared to $33.8m (Shs123b) in June compared to May to $23.1m (Shs84b) Uganda earned in May.
South Sudan, which by 2013 had been Uganda’s largest export market, has been a volatile export destination. However, Uganda’s exports to the country continue to stabilise.
Export earnings to Burundi during June stood at $4.5m (Shs16.4b) from $3.5m (Shs12b) in May.
This was also much higher than $2.9m (Shs10b) Uganda fetched from Burundi in April.
Uganda exports mainly iron and steel, textiles, vegetables and fruits, plastics and some fast consumer goods among others to Burundi.
Although there was a drop, in June Uganda earned $8m (Shs29.2b) from its exports to Tanzania compared to $12.3m (Shs44b), which the country had earned in May.
Uganda mainly exports dairy products, eggs, honey, edible products to Tanzania.
New inroads
Uganda has been making inroads, especially in DR Congo given increasing challenges in other markets.
During June Uganda’s export receipts from DR Congo grew to $20.2m (Shs73.7b) compared to $17.7m (Shs64b) in May.
Uganda exports mostly animal, vegetable fats and oils and cleavage products to Congo. Other commodities include sunflower-seed, safflower or cotton-seed oil, and fast consumer goods.
