Exports to Asia narrow Uganda’s trade deficit

Middle East has for the third time in three months been Uganda’s leading export destination, which has helped the country narrow its trade deficit. 
The region, according to Ministry of Finance, took the largest share of Uganda’s exports in June. 
At least 53.7 per cent of Uganda’s exports during the period was to Middle East.

Middle East is closely followed by the East African Community, which took up at 19.4 per cent while the rest of Africa took up 10.4 per cent. 
During the period, United Arab Emirates, as a single country, took up the largest share with exports to the country growing from $100.97m in June to $223.3m in July.

However, government does not indicate which exports were exported to where.  
The export growth to Middle East has enhanced Uganda’s trade deficit, which during the period, narrowed by 9.7 per cent. The Finance Ministry in its July performance of the economy report, indicated that Uganda’s monthly trade deficit narrowed from $205.39m to $185.44m.  
In July exports grew by 25 per cent from $338.36m in June to $419.6m compared to the same period last year. 
Coffee, maize, cement, fruits and vegetables, according to Finance Ministry dominated the exports in the period.
 
However, during the same period, the value of imports increased both on an annual and monthly basis, as both government and private sector imports experienced an upsurge. 
On an annual basis, the value of imports increased by 10.1 per cent to $ 605.04m in July from $547.07m in 2020. 
The increase was on account of higher government project imports as project works picked up following the disruptions that were caused by measures put in place to contain Covid-19, as well as, non-oil private sector imports. 

During the period private sector imports such as mineral products (excluding petroleum products), prepared foodstuffs, beverages and tobacco, chemical and related products dominated. 
During July the total import bill increased from $543.74m to $605.04m with Asia remaining Uganda’s main source of imports. 
At least 33.8 per cent of the imports during July were sourced from Asia. The EAC and the rest of Africa contributed 27.8 per cent and 18.2 per cent, respectively. 

Imports from Asia were mainly from China (40.7 per cent), India (30.4 per cent) and Japan (12.9 per cent) while those within EAC,  were mainly from Kenya and Tanzania, accounting for 47.9 per cent and 48.5 per cent, respectively.”

trade surplus                      
According to the Ministry of Finance during July, Uganda traded at a deficit with all regions save for the Middle East, in which the country registered a merchandise surplus of $189.36m from $13.26m in the same period last year.  
During the period exports to the region increased by $122.14m while imports fell by $53.96m.