Uganda earns Shs12b from exporting bottled water – BoU
What you need to know:
Uganda’s bottled water exports have risen by 55 per cent in October - the highest monthly record since 2013 following growing demand from neighbouring countries.
KAMPALA. Uganda’s export earnings from bottled water jumped by 55 per cent in October to Shs12b, up from Shs6.7b earned in September.
Uganda’s bottled water exports have risen by 55 per cent in October - the highest monthly record since 2013 following growing demand from neighbouring countries.
Largely boosted by the increasing health trend where majority have opted for low calorie drinks, the meteoric rise in bottling water business has emerged as a key competitor against soft drinks and other beverages.
According to the October Bank of Uganda monthly report released this week, water earned the country $3.4m (Shs12b), up from $1.8m (Shs6.7b) earned in September.This was a Shs6.6b or 55 percent increase in earnings during the period in review.
Reacting to this performance, Uganda Export Promotion Board –Export executive, Mr John Bosco Lwere, says: “Uganda’s increased exports in bottled water is driven by market from the regional neighbours mainly DR Congo and South Sudan, mostly due to absence of factories in these countries but with big demand.”
Uganda has a booming bottled water industry. However, it is under threat by increasing underground businesses that manufacture fake and substandard products.
According to information from Uganda Water and Juice Manufacturers Association, there are 53 registered water bottling companies with others operating underground.
Mr Simon Kaheru, the Uganda Chair of the East African Business Council, explains the increase in bottled exports saying: “Any increase in exports from Uganda is a positive sign that we are stepping up as a country to fill a space that benefits the entire region.”
“More so, an increment in bottled water exports is more interesting because the market here is not saturated yet,” he says.
He tasks auxiliary industries in energy and logistics sectors to take note to benefit from this trend.
With this trend, Kaheru says the government has the opportunity to support more growth and incentivise increased production without the hindrances manufacturers keep pointing out.
In 2019, Uganda exported mineral water worth $15.34m, a growth of 37.18 percent from 2018’s total mineral water export of $11.182m.
Uganda’s top destinations for mineral water are Burundi, United Kingdom, the Netherlands, Canada and United Arab Emirates.
