There was a 14.8% decline in the value of coffee exports in August
Uganda’s export receipts grew by 47.8% from US$343.30 million (Shs1.31 trillion) in July to US$507.49 million (Shs1.94 trillion) in August 2022, Ministry of Finance’s Performance of the Economy report for September 2022, has revealed.
This growth was attributed to increased earnings from different export commodities such as mineral products, tobacco, maize, oil re-exports, soap, base metals & products, fruits & vegetables.
“There was further increase in the maize exports during the month from USD 7.24 million in July to USD 11.02 million in August 2022,” the report says, adding: “This was mainly due to droughts in the neighboring countries which caused food scarcity hence the increased demand for Ugandan maize.”
However, there was a 14.8% decline in the value of coffee exports from USD 83.52 million in July to USD 71.15 million in August 2022 mainly on account of lower yields that were characterized by drought particularly in Greater Masaka and the South-Western regions.
According to the report, Uganda’s trade deficit with the rest of the world narrowed to US$310.7 million (Shs1.18trillion) in August from US$324.3 million (Shs1.24trillion) in July 2022 mainly on account of increase in export receipts.
Compared to the same month last year, the goods deficit increased from USD 253.82 million to USD 310.71 million in August 2022. This followed a higher increase in the import bill that more than offset the growth in export receipts over this period.
Destination of Exports
The East African Community (EAC) remained the major destination for Uganda’s exports accounting for USD 209.02 million total exports during the month of August 2022 of which USD 75.40 million went to South Sudan, USD56.75 million went to Democratic Republic of Congo and USD 50.42 million went to Kenya.
This was followed by the Middle East with total exports accounting to USD180.48 million with United Arab Emirates taking the highest amount of USD 174.68 million and the European with total exports accounting to USD 62.56 million with Italy contributing the highest exports accounting for USD 30.37 million.
Merchandise Imports
According to the report, the value of goods imported into Uganda increased by 22.6% in August 2022, from USD 667.62 million in July 2022 to USD 818.20 million.
“This increase was mainly driven by higher volumes of the private sector goods imported. In particular, private sector imports which had the largest increases were mineral products (excluding petroleum products); chemical & related products; base metals & their products,” the report says.
Similarly, there was an increase in the value of goods imported into Uganda on an annual basis.
Goods imports increased by 50.2% from USD 544.60 million in August 2021 to USD 818.20million in August 2022. This was mainly driven by an increase in mineral products and petroleum products.
Origin of Imports
Asia remained the largest source of Uganda’s imports accounting for USD 335.52 million of Uganda’s total imports. This was followed by the Middle East and EAC with imports accounting for USD 149.70 million and USD 81.6 million respectively.
“Uganda continued to trade at a deficit with most of the regions except for EAC and the middle East, with EAC having the highest surplus of USD 127.41 million. The surplus registered with the Middle East is largely on account of Uganda’s mineral product exports to the region,” the report says.
