Uganda registers Shs418b surplus in trade within EAC
Trucks in a queue at Gatuna border, Rwanda. PHOTO/FILE
What you need to know:
- The above development demonstrates how trade activity has picked up in the region after suffering a decline in the past two years due to Covid-19.
Uganda’s trade balance within the East African Community during October 2022, indicates that merchandise trade resulted in a surplus of $114.54 million (about Shs418.337 billion), an increase from a surplus of $71.05 million (about Shs259.497 billion) recorded a year ago.
The above development demonstrates how trade activity has picked up in the region after suffering a decline in the past two years due to Covid-19.
The Ministry of Finance Planning and Economic Development said in the performance of the economy report for the month of November 2022 released Monday that over the same period, exports to EAC increased by 11.8 per cent whereas imports decreased by 22.5 per cent.
“There was an increase in export receipts from Rwanda from $ 0.20 million (Shs730.47 million) in October 2021, to $ 11.66 million ( Shs42.586 billion) in October 2022. This followed the reopening of Katuna border at the start of 2022. Within the EAC bloc, Kenya remains Uganda’s main trading partner. However, Uganda recorded a trade surplus with all EAC Partner States save for Kenya,” the Ministry of Finance said.
Overall, the Ministry of Finance said merchandise export receipts increased both on a monthly and annual basis. On a monthly basis, export receipts amounted to $348.82 million (Shs1.274 trillion) in October 2022, an increase of 6.8 per cent from $326.75 million (Shs1.193 trillion) registered in September 2022. This development largely followed an increase in the export receipts of beans, fish, cocoa beans and crude vegetable oil products like sunflower.
On an annual basis, a comparison between October 2021 and October 2022 shows a 21.8 per cent increase in export receipts from $286.39 million (Shs1.045 trillion) to $348.82 million (Shs1.274 trillion).
The East African Community (EAC) was Uganda’s top destination for merchandise exports (55.59 per cent) in October 2022, followed by European Union, then Asia.
Compared to October 2021, the Ministry of Finance said Uganda‘s exports to all regions grew with an exception of the Rest of Africa.
A comparison between the months of September and October 2022 showed an increase in export receipts and a decrease in the import bill. This resulted in a 10.9 per cent reduction of the merchandise trade deficit to $301.67 million (Shs1.101 trillion) in October 2022 from $338.51 million (Shs1.236 trillion) the previous month.
On the other hand, compared to the same month the previous year, the merchandise trade deficit widened from $245.10 million (Shs895.184 billion) to $301.67 million (Shs1.101 trillion) in October 2022 following a higher increase in the import bill that more than offset the growth in export receipts.
The Ministry of Finance said merchandise worth $650.48 million (2.375.trillion) was imported during the month of October 2022.
