Export earnings grow by 38.9%

Export earnings grew by 38.9 percent in January compared to the same period last year, largely due to higher returns from commodities such as maize, coffee, tea and tobacco.

According to the Ministry of Finance performance of the economy report, released at the weekend, during January 2022, earnings from maize exports  stood at $6.76m but grew to $35.01m in January 2023 due to “easing of non-tariff barriers in Kenya and the opening of the Uganda-Rwanda border”. 

Similarly, earnings from coffee increased by 13.1 percent due to growth in exports to meet the reduced supply from major exporting countries such as Brazil and Vietnam. 

The growth saw Uganda record an increase in the value of exports to $404.46m up from $371.81m during the period. 

The East Africa Community remained the leading destination for Uganda’s exports, accounting for 63 percent. 

Kenya, South Sudan and DR Congo were the top three destinations of Uganda’s exports to EAC, taking up 36.3 percent, 23.5 percent and 20.3 percent, respectively.

However, the value of the import bill increased by 11.3 percent in January on account of higher volumes of private sector imports resulting from an increase in economic activity. 

Imports that registered a significant increase included electricity, prepared food stuffs, beverages and tobacco and animal and animal products.

In January, Asia was the largest source of imports, accounting for 47.5 percent.  Of the total imports from Asia, 70.1 percent were from China and India.  Asia was followed by the Middle East and EAC, accounting for 21.4 percent and 14.1 percent, receptively.  

The report also noted that within EAC, the top three sources of imports were Kenya, Tanzania and DR Congo, contributing 78.8 percent, 11.4 percent and 6.5 percent, respectively.

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