Traders in Kikuubo Business Centre/ Courtesy photo
The Performance of the Economy report for September 2023 has revealed that during August 2023, Uganda imported goods worth US$1,071.93 million (Shs4.017Trn) representing a 25.7% increase from the US$ 853.06 million (Shs3.197Trn) that was imported in July 2023.
The Ministry of Finance, Planning and Economic Development attributed the increase to mineral products (gold), wood & wood products, petroleum products and machinery equipment, vehicles & accessories which grew by 65.6%, 42.1%, 28.5% and 12.8% respectively during the month.
“Uganda has one of the best gold refineries in the region which attracts business people dealing in gold from the region to bring their gold for processing, thus explaining the increasing amount of gold imports.” read in part the report.
The report further revealed that the origin of imports came from Asia, accounting for 33.3% of all imports for the month and this was followed by the East African Community (EAC), Middle East and the Rest of Africa accounting for 27.7%, 19.4% and 10.8% respectively.
At a country specific level, Tanzania and China were Uganda’s largest source of imports, accounting for 18.6% and 17.0% of the total imports during the month. Other notable sources included the United Arab Emirates, Kenya and India accounting for 14.7%, 8.1% and 7.3% respectively.
Relatedly, Uganda earned Shs2.5Trn from exports, although this performance was deemed by the huge number of imports the country brought inside the country.
According to the Ministry of Finance, Planning and Economic Development, Uganda exported merchandise worth US$ 669.88 million (Shs2.510Trn) during August 2023, representing a 17.6 % increase from US$ 569.78 million (Shs2.135Trn) in July 2023.
The Ministry of Finance attributed the growth in imports on the increased export earnings mainly from gold and coffee during the month.
The report further added that the biggest share of Uganda’s exports during the month of August 2023 went to the EAC partner states which accounted for 34.7 % of the exports, followed by the Middle East with 22.6%, Asia with 20.3% and the European Union at 12.5% of the total exports.
On a country specific level, the United Arab Emirates remained Uganda’s largest destination of exports during the month accounting for 21.9% of the total value of merchandise exported. Other notable countries were India, South Sudan and Kenya with 14.9%, 7.7% and 6.7% respectively of the total value of goods exported during the month.
