UAE overtakes Kenya as Uganda’s largest source of export earnings
What you need to know:
- The United Arab Emirates and India are now Uganda’s largest sources of export earnings due to an increased uptake of Uganda’s gold
United Arab Emirates (UAE) is now Uganda’s largest source of export earnings, according to Bank of Uganda (BoU) data.
The data, which reviews different exports, indicates that Uganda’s formal export earnings grew by 66.8 percent from Shs4.91b in June 2022 to $7.3b in June 2023, of which 41.9 percent or $3.09b was from gold.
Coffee followed with a share of 15.53 percent, grossing $1.14b from $845.41m in June 2022.
Other high-value exports included base metals and products, whose earnings grew to $282.2m, cocoa beans, ($215.11m), maize ($172.46m), oil re-exports ($146.26m), and fish and its products ($138.35m).
Data further shows that UAE has in the last 14 years overtaken Kenya, DR Congo, and Rwanda, to become Uganda’s largest source of export earnings, contributing 25.66 percent of total export earnings. Uganda currently earns $2.03b from exports to UAE, an exponential growth from just $107.94m in June 2011.
The report further indicates that of the $2.09b worth of exports to the Middle East, UAE takes at least 97.46 percent, with the rest - 2.54 percent – shared among Israel ($19.03m), Saudi Arabia ($7.26m) and Jordan ($2.44m), among others.
Uganda largely exports gold to the UAE, raw tobacco, and fish fillets.
Mr John Lwere, the Uganda Export Promotion Board exports executive, said yesterday that Uganda also exports horticultural products such as sweet bananas, avocado, sweet potatoes, pineapples, and coffee.
Over the past 14 years, Uganda’s exports to UAE have increased at an annualised rate of 5.29 percent from $107.94 in June 2011 to $2.03b.
Share of export earnings
Country | Value | Share |
UAE | $2.03b | 25.66% |
India | $951.8m | 12.92% |
Kenya | $626.7m | 8.51% |
South Sudan | $534.5m | 7.25% |
Italy | $467.6m | 6.34% |
DR Congo | $429.06 | 5.82% |
Hong Kong | $349.1m | 4.74% |
Rwanda | $306.1m | 4.15% |
Germany | $195.4m | 2.65% |
Tanzania | $185.1m | 2.51% |
Netherlands | $165.90m | 2.25% |
India follows UAE, contributing 12.92 percent of export earnings, which in the year ended June 2023, grew to $951.87m.
Mr Lwere said Uganda’s export earnings from India had last year overtaken earnings from Kenya, almost tripling from $332.63m in June 2022 to $951.87m.
“The trend started last year. But if it was not for that, Kenya would be in the second position,” he said, noting that Uganda’s exports to India include gold, coffee, cocoa, and vanilla, among others.
Kenya, which is Uganda’s largest trade partner in East Africa, takes the third position, with earnings grossing $626.73m, which represents a percentage share of 8.51 percent.
Over the last 14 years, Uganda’s export earnings from Kenya have grown from $214.5m, despite challenges related to non-tariff barriers and trade blockades.
Uganda largely exports dairy products, sugar, maize, beans, and oil seeds to Kenya. However, several of Uganda’s exports such as poultry and related products, milk, and sugar have experienced blockades. South Sudan and Italy, which contribute $534.54m and $467.64m, respectively, complete the list of Uganda’s top five export markets.
Mr Lwere indicated that Uganda mainly exports coffee, which makes up 80 percent of the country’s exports to Italy, in addition to fruits and vegetables, spices such as vanilla, and a bit of grain.
Data further indicates that in terms of trading blocs, Comesa offers Uganda the largest share of export earnings of $2.16b, which represents a share of 29.3 percent.
The Middle East follows with earnings worth $2.09b, followed by Asia at $1.56b, the European Union ($106b), and the Rest of Africa ($311.27m).
The Americas and the Rest of Europe, contribute $105.76m and $59.64m, respectively.