Uganda’s export earnings declined by 8.3 per cent in January
What you need to know:
- The price of Uganda’s coffee increased in tandem with higher global prices which have been driven by continued concerns over supply, especially in Indonesia and Vietnam.
The lower export earnings from gold, beans, oil re-exports and tobacco during January 2024 have resulted in a decline in Uganda’s earnings.
The Ministry of Finance Planning and Economic Development said in the macroeconomic policy monthly report of February 2024 released on March 18, that in January 2024, Uganda exported merchandise worth $565.40 million (Shs2.203 trillion), which is an 8.3 per cent reduction compared with $616.36 million (Shs2.402 trillion) earned the previous month.
However, on the other hand, the Ministry said in comparison to the same month the previous year, merchandise exports grew by 34.1 per cent from $421.55 million (Shs1.642 trillion) in January 2023. This was attributed to increased export earnings from gold, coffee, and oil re-exports among others.
The Ministry of Finance said during the month, coffee export receipts during the month amounted to $85.57 million (Shs333.5 billion, a 29.8 per cent increase in value from 65.94 million (Shs257 billion) registered in December 2023. This increase was majorly on account of a rise in the average price from USD 2.74/kilo in December to USD 2.96/kilo in January 2024.
The price of Uganda’s coffee increased in tandem with higher global prices which have been driven by continued concerns over supply, especially in Indonesia and Vietnam.
“The US Department of Agriculture in Indonesia notes that excessive rainfall has disrupted the cherry development stage and lowered yields in major robusta-producing areas. In Vietnam, factors such as decreased land, rising labour and fertilizer expenses, and farmers switching to alternative crops have caused a drop in production,” report reads in part.
The Ministry said Italy maintained the highest market share for Uganda’s coffee exports absorbing 41.8 per cent of the coffee. This was an increase when compared with its 39.5 per cent market share the previous month.
It was followed by Germany 13.4 per cent, India 9.8 per cent, Spain 5.3 per cent and the United States of America 4.4 per cent.
Destination of Exports
The EAC remained the top destination of Uganda’s exports in January 2024, accounting for 38.2 per cent of the total market share.
Among the EAC partners, the Ministry of Finance said Kenya received the largest share of Uganda’s exports, constituting 30.4 per cent of the total exports to the region.
Following EAC, the Middle East and the European Union emerged as the second and third top destinations for Uganda’s exports, accounting for 26.4 per cent and 17.5 per cent respectively.
Notably within the Middle East, the United Arab Emirates remained the leading destination, absorbing 97.1 percent of Uganda’s total exports to the region.
The value of merchandise imports decreased by 15.0 per cent from $886.24 million (3.454 trillion) in December 2023 to $753.54 million (Shs2.936 trillion) in January 2024.
This decrease was largely attributed to lower private sector imports particularly mineral products(excluding petroleum products), textile and textile products, machinery equipment, vehicles and accessories, among others.
Excluding gold, imports grew by 6.9 per cent from $614.09 million (Shs2.382trillion) to $656.28 million (2.544 billion).
