Uganda registered a 29.5% growth in its exports sector year-on-year, according to the Performance of the Economy Report released by the ministry of finance, which said the growth was fueled by demand for Uganda’s coffee and minerals.
“... on a year-on-year basis, Uganda’s exports continued on an upward trajectory in August 2020, growing by 29.5% when compared to August 2019. This growth was mainly explained by mineral exports, as well as some agricultural exports such as flowers and tea,” reads the report.
According to the report, the total export value was $416.2 million in August 2020 increasing from $321.41m in August of last year.
The value of non-coffee formal exports (minerals, cotton, tea, fish, flowers, simsim, maize, and beans) increased from $233.36m in August 2019 to 369.15m in August 2020, recording of a 58.2% rise.
Mineral exports alone accounted for 221.71 million in August.
Coffee export value increased by 29.5% from 46.34.98 million US dollars in August 2019 to 46.06 million in August 2020.
It’s only the informal cross-border trade which reduced from $41.71m to $1.05m, a decline of 97.5%.
The report shows that Uganda’s major export destination in August 2020 was the middle East as opposed to it being the East African Community (EAC) a year ago.
“The Middle East accounted for 54.1% of all exports out of Uganda in August 2020, almost a double increase from the 27.8% the region accounted for in August 2019. The value of exports to the Middle East more than doubled between August 2019 and August 2020 while the value of exports to all other trading regions declined in the same period,” the report says.
“On a country-specific level, 53.6% of Uganda’s exports were destined to one country, the United Arab Emirates in August 2020. The share of informal cross border trade (ICBT) shrunk from 13.0% in August 2019 to 0.3% in August 2020, owing to the effect of the COVID-19 pandemic on regional trade as there has been the imposition of tight border restrictions to curtail the spread of the virus.”
Meanwhile, the value of imports continued to increase both on an annual and monthly basis during August 2020. Month on month, imports increased by 14.7% from US$ 605.02 million in July 2020 to US$ 693.89 million in August 2020. Similarly, there was a 34.0% increase on an annual basis from the US$ 517.93 million recorded in August 2019.