How regional tensions have  impacted Uganda's exports

In the last 10 years, DR Congo and South Sudan have become key destinations for Uganda’s exports.

In fact, data has previously indicated that the two countries have alternated in the period under review as Uganda’s largest export markets, overtaking Kenya, which had for decades been a key traditional export market for Uganda’s goods.

However, the conflicts in both DR Congo and South Sudan and resultant tensions have significantly eaten into Uganda's export numbers.

Data from Bank of Uganda indicates that during February, Uganda's exports to DR Congo plunged by 32 percent.

However, the drop was more significant in South Sudan, with the value of exports dropping by 70 percent.

Bank of Uganda data indicates that Uganda's total exports in February to South Sudan dropped from $55.94m (Shs206.4b) in January to $32.77m (Shs120.9b), while exports to DR Congo dropped from $45.43m (Shs167.3b) to $34.41m (Shs127b).

The two countries, data indicates, contributed a combined reduction in export earnings of $34.19m (Shs126.2b) in February.

Uganda also recorded a reduction in exports to Rwanda, which dropped by 19 percent to $20m (Sh74b) from $24.5m (Sh90b) in January. 

Dr Julius Byaruhanga, the Private Sector Foundation Uganda director of policy, said the decline could have resulted from a “pause on clearing exports to DR Congo through border points except for goods going by plane to Kinshasa".

This pause was largely due to the absence of government-controlled customs, especially along Uganda's borders with eastern DR Congo.

However, Uganda’s exports to Tanzania and Kenya rose in February by 38 percent and 13 percent, respectively, partly compensating for the drops. 

Exports to Tanzania rose to $13.9m (Shs51.4b) from $8.8m (Shs32.5b) in, while exports to Kenya increased to $41m (Shs152b), from $35.7m (Shs132b).

The declines due to DR Congo and South Sudan have already impacted  Uganda’s foreign exchange earnings

Impact on trade

Bank of Uganda data indicates that Uganda’s exports to East Africa declined by 17.09 percent or $25.56m from $175.07m to $149.51m. 

The decline impacted the general performance of export receipts, which during February declined by 1.9 percent from $859.22m to Shs843.05m.

Bank of Uganda data also indicates that Uganda’s exports to Sudan during February reduced by 40 percent, earning the country just $10.8m (Shs40b), compared to $15.2m (Shs56b) in January. 

Performance of Uganda’s exports across East Africa in February 

[email protected]