Uganda, Egypt trade ties to increase as stability returns
A coffee farmer picks ripe berries. Coffee is one of the items that Uganda exports to Egypt. FILE Photo
What you need to know:
Uganda exports fish fillet, coffee, tobacco, among others.
Kampala- Uganda’s ties with Egypt, one of its main export markets in the Common Market for East and Southern Africa (Comesa) region, are still slow despite the return of relative political stability.
However, experts are optimistic that trade between the two countries will resume though it will take a bit of time.
Uganda was exporting goods worth $5.8 million (Shs15.1 billion) to Egypt before the 2011 political revolts that saw hundreds of people die and businesses paralysed.
Statistics also show that in 2012, Uganda’s exports to the North African state fell to $780,000 (Shs2 billion) and in 2013, the figure further dropped to $168,000 (Shs440 million).
Talking to Daily Monitor, Uganda Export Promotion Board (UEPB) trade officer Moses Mabala said: “We have seen the demand for imports by Egypt from Uganda drop because of the instabilities. In the period 2009-2013, trade between Uganda and Egypt fell by 41 per cent.”
He, however, said since the beginning of the year, records show that there is a slight increase in the country’s exports to Egypt. “In January 2014, our records show that Uganda exported to Egypt goods worth $0.01 million (about Shs26 million), in February there a slight increase to $0.03 million (about Shs78 million) and in March, we exported goods worth $0.07 million (about Shs182 million),” he said.
Mr Silver Ojakol, the commissioner of external trade at the Ministry of Trade, said: “Both Uganda and Egypt subscribe to the Comesa Free Trade Area (FTA). This means that Uganda’s exports to Egypt are not subjected to import taxes. Because of this, we have been seeing traders exploiting this opportunity.”
The exports
According to records from UEPB, Uganda’s major exports to Egypt include fish fillet, Coffee, and Tobacco, warm clothing /articles, ceramic pipes and printed materials.
However, the country also indirectly exports her tea through Mombasa Auction to Egypt.
This, according to information from Kenya, shows that the return of political stability has expanded the market outlet thus giving fresh hopes to farmers.
Industry statistics also indicate that the volume of tea shipped to export markets increased marginally to 42.7 million kilos in June compared to 42.3 million kilos in the same period last year.
