Uganda earned US$3.339bn (Shs12.3 trillion) in 2017 from her exports combined, up from US$2.921bn (Shs10.7 trillion) in 2016, according to latest figures released by the Bank of Uganda (BoU).
Cash crops contributed greatly to the above earning. For example, coffee beat gold exports to emerge Uganda’s top foreign exchange earner.
It’s important to note that Uganda is largely an agricultural economy although about 68% of the population is still practicing subsistence farming. Additionally, Uganda’s expenditure on imports exceeds earnings from her exports, a thing that has left the Uganda Shilling weak compared to other major currencies for many years.
In this article, Business Focus reveals the top 10 crops earning Uganda millions in foreign exchange. These crops could change farmers’ fortunes and the economy at large if farmers and government prioritize them.
They will act as a guide to businessmen interested in earning foreign currency through exports.
Coffee remains Uganda’s leading foreign exchange earner.
From 4.77m 60kg-bags Uganda exported in 2017, the East African country earned US$555.34m (Shs2 trillion), up from US$371.65m (1.37 trillion) recorded in 2016.
It should be noted that a few years ago government embarked on a campaign of distributing free coffee seedlings to farmers with the aim of increasing production to at least 20m-60kg bags by 2025.
Ugandan farmers are currently counting losses after maize prices hit a record low of Shs200 per kilogram.
However, the crop has emerged as a top food and cash crop for Uganda.
After coffee, maize earned Uganda US$88.53m (Shs326.8bn) in foreign exchange in 2017, up from US$70.17m (Shs259.1bn) in 2016. A year earlier, Uganda earned US$90.97m from the increasingly grown crop.
Is tea still one of Uganda’s cash crops? Many people would ask. At least according to BoU figures, tea which is mainly grown by companies on a large scale and a few out growers is still one of the country’s major cash crops.
In 2017, Uganda earned US$79.58m (Shs293.7bn) from tea exports, up from US$71.58m (Shs258.2bn) in 2016. A year earlier, the country earned US$69.94m from tea exports.
Beans are a major source of sauce in Uganda. The crop hasn’t received much attention from farmers and government, but it is one of the major crops earning Uganda millions in foreign exchange.
In 2017, beans earned Uganda US$77.88m (Shs287.4bn), up from US$38.26m (Shs141.2bn) in 2016. In 2015, the crop fetched the East African country US$53.88m.
In Uganda, flowers are largely grown by big firms. Uganda fetched US$57.76m (Shs213.2bn) in 2017 from flower exports, up from US$51.65m (Shs190.7bn) in 2016.
Flowers have potential to bring in more foreign exchange if more investors join its growing.
Ugandans are increasingly taking on cocoa growing and the crop is earning the country millions of dollars in foreign exchange.
In 2017, the country fetched US$54.34m (Shs200.5bn), up from US$75m (Shs276.9bn) in 2016.
In 2015, Uganda earned US$55.67m in cocoa beans.
Although Uganda came up with tough law on the tobacco industry, the crop is still grown in some parts of Uganda and remains one of the top foreign exchange earners.
In 2017, tobacco earned Uganda US$46.30m (Shs170.9bn), down from US$61.73m (Shs227.9bn) recorded in 2016. In 2015, Uganda earned US$73.13m from tobacco exports. The decline in earnings is due to the tough law that has seen British American Tobacco quit leaf production and concentrate on marketing and distribution of cigarettes.
Fruits and Vegetables
Uganda’s fruits and vegetables are highly sought in the international market although the East African country is yet to fully seize the opportunity.
Fruits and vegetables earned Uganda US$37.46m (Shs138.3bn) in 2017, down from US$43.2m (Shs159.4bn) in 2016. In 2016, fruits and vegetables earned Uganda US$32.1m.
Rice is one of the global food and cash crops. The crop earned Uganda US$27.19m (Shs100.4bn) in 2017, up from US$20.36m (Shs75.1bn) in 2016.
Simsim which is mainly grown in Eastern and Northern parts of Uganda also earns Uganda a few million dollars. In 2017, it fetched Uganda US$17.17m (Shs63.38bn), up from US$14.52m (Shs53.6bn) in 2016. A year earlier, it earned Uganda US$52.20m.
Uganda’s Top 10 Exported Crops As Of 2017
|Crop||Earning In US$|
|Fruits and Vegetables||37.46m|