Uganda’s exports increase by 93% - Finance

Uganda’s Ministry of Finance, Planning and Economic Development said Monday that in March 2023, the country exported merchandise worth $674.54 million, which represented a 93.0 percent increase when compared to $349.44 million exported during February 2023. 
Further, April 2023’s performance of the economy macroeconomic policy department’s monthly report released today indicated that the increase was mainly on account of higher export earnings from mineral products, tobacco, maize and cotton registered during the month.
“Coffee exports during the month amounted to $71.54 million, an 8.4 percent increase from $66.03 million in February 2023. This growth was mainly attributed to exporters who off-loaded coffee from their warehouses for sale to benefit from the rising international price of Robusta coffee,” said the report.
 In comparison to the same month the previous year, the ministry officials said merchandise exports grew by 85.4 percent from $363.74 million in March 2022 to $674.54 million in March 2023. 

This was largely attributed to increased export earnings from mineral products, maize and tobacco during the month. Mineral products, particularly gold increased significantly following the resumption of gold trade in August 2022.
The East African Community (EAC) remained the top destination of Uganda’s exports in March 2023, accounting for 35.7 percent of total exports for the month. 
For Trade Balance with EAC in March 2023, Uganda traded at a surplus of $15.9 million with the regional bloc.
 “This was an 84.4% decline from the surplus of $102.4 million in the previous month. The decline was largely on account of imports from the Democratic Republic of Congo, Tanzania, and Kenya which increased considerably by $60.93 million, $60.1 million, and $14.19 million respectively,” said Dr Albert Musisi, commissioner macroeconomic department. 
However, trade deficits were recorded for Tanzania, and Kenya while surpluses were recorded for Congo, South Sudan, Rwanda, and Burundi.

In related development, the Ministry Dr Musisi said exports to the EAC increased by 26.6 percent from $190.2 million to $240.9 million in March 2023, with the largest share accounted for by Kenya followed by the Democratic Republic of Congo. While imports were mainly from Kenya followed by Tanzania.
Exports out of the EAC were to the Middle East at 32.3 percent and Asia at 14.6 percent. 
“It is worth noting that Uganda’s export earnings from the Middle East significantly increased from $21.41 million the previous month to $217.99 million in March 2023, owing to the growth in exports of mineral products to the region,” the ministry’s report indicated. 
The report shows that the value of merchandise imports increased by 41.6 percent from $647.09 million in February 2023 to $916.47 million in March 2023. This growth was mainly attributed to higher private sector imports particularly mineral products (excluding petroleum products), vegetable products, beverages, fats and oils, as well as animal products. 

Comparison with the same month last year shows that merchandise imports grew by 39.6 percent from $656.69 million in March 2022, to $916.47 million in March 2023. This increase was mainly driven by increased import volumes for mineral products (excluding petroleum products), machinery, equipment and vehicles, among others.
The report further shows that between February and March 2023, Uganda’s merchandise trade deficit narrowed by 18.7 percent from $297.66 million to $241.93 million. Year-on-year, the merchandise trade deficit narrowed by 17.4 percent from $292.94 million in March 2022 to $241.93 million in March 2023.
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