Uganda registers Shs35 billion trade surpluses with EAC states

Uganda traded at a surplus worth $9.45 million (Shs35.4 billion) with the East African Community member states in September, which is a shift from a deficit of $49.9 million in the previous month.

The Ministry of Finance, Planning and Economic Development said in its economy report dated November 17 that this surplus was on account of both a reduction in imports (by $41.94 million), which is about Shs157.3 billion and an increase in exports (by $17.41 million), which is about (Shs65.328 billion).

On the other hand, the Ministry of Finance said imports from the region declined to $240.69 million (about Shs903.1 billion) in September from $ 282.63 million (about Shs1.060 trillion) in August 2023.

“The reduction was majorly attributed to lower imports from Tanzania and Kenya which declined by $52.71 million (about Shs197.7 billion) and $7.76 (about Shs29.1 billion), respectively,” said the Ministry of Finance. 

It said within EAC, Uganda sources most of her imports from Kenya and Tanzania with the two nations contributing 87.73 per cent of total imports in September, unlike in August where the share stood at 96.37 per cent.

In September 2023 exports to EAC grew by 7.48 per cent to $250.13 million (about Shs938.5 billion) from $232.72 million (873.2 billion) in August 2023. Exports to Tanzania, Kenya and Rwanda increased by $9.37 million (about Shs35.1 billion), $8.47 million (about Shs31.7 billion) and $2.29 million (about Shs8.5 billion), respectively.

“Majority of the exports were destined to Kenya, DR Congo, and South Sudan, equivalent to $65.42 million (about Shs245.4 billion), $62.61 million (about Shs234.9 billion) and $56.11 million (about Shs203.039 billion), respectively. These three countries accounted for 73.62 per cent of total exports to the region during the month under review,” said the Ministry of Finance.

The Ministry noted that Uganda exported merchandise worth $632.06 million (about Shs2.3 trillion) to the rest of the world in September, 2023.

This represented a 5.6 per cent decline in comparison to $669.88 million (about Shs2.5 trillion) exported in August 2023. The decrease was majorly attributed to lower export earnings from beans, maize, tobacco, flowers and coffee registered during the month.

In comparison to the same month the previous year, merchandise exports grew by 93.1 per cent from $327.28 (about Shs1.2 billion) in September 2022. This was attributed to increased export earnings from gold, coffee and maize among others.

Coffee exports during the month amounted to $94.39 million (about Shs354.1 billion), which is a 22.4 per cent decrease from $121.64 million (about Shs456.4 billion) registered in August 2023.

The Ministry of Finance said this decline was partly attributed to the end of the coffee harvesting season in the Greater Masaka and South-Western regions (May to August), as well as the reduction in the international price of Robusta coffee during the month.

However, in comparison with the same month last year, coffee exports grew by 32.5 per cent from $71.22 million (about Shs267.2 billion) in September 2022, to $94.39 million (about Shs354.1 billion) in September 2023.

This was largely attributed to the increase in Robusta coffee exports, partly driven by a good crop harvest in the South-Western region and prevailing good prices on the global scene which prompted exporters to off-load coffee from their warehouses for sale.

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