Uganda’s economy showcased remarkable resilience in July 2024, with export earnings reaching over Shs2.8 trillion ($785.03 million), according to the latest Performance of Economy report by the Ministry of Finance.
This figure marks a 9.2% increase from June’s earnings of $718.60 million (Shs2.643 trillion).
The report highlighted that this growth was primarily driven by higher earnings from key sectors such as coffee, mineral products, cotton, tobacco, and oil re-exports.
“Export earnings in July 2024 amounted to $785.03 million, a significant rise from previous months,” the report stated.
However, it also noted a decline in exports excluding coffee and mineral products, which fell by 8.3% from $307.35 million to $282.00 million, indicating challenges faced by the broader merchandise export landscape.
The Middle East emerged as the largest destination for Uganda’s exports, accounting for 30.3% of total exports in July 2024.
Notably, the United Arab Emirates dominated this market, comprising 97.5% of Uganda’s exports to the region.
“The robust demand from the UAE reflects our strengthening trade relations with Middle Eastern countries,” said a representative from the Ministry of Finance.
Other notable export destinations included Australia, Iceland, the East African Community (EAC), the European Union, and Asia, which contributed 26.5%, 21.8%, and 14.6% of the total exports, respectively.
While the increase in export earnings is commendable, it is important to contextualize it against Uganda’s ongoing reliance on imports.
The value of merchandise imports rose by 9.1%, climbing from $966.53 million (Shs3.555 trillion) in June 2024 to $1,054.36 million (Shs3.879 trillion) in July 2024.
“This increase was mainly driven by higher volumes of formal private sector non-oil imports,” the report noted, citing mineral products, base metals, machinery, vehicles, and various agricultural goods as significant contributors.
Asia continues to be the largest source of Uganda’s imports, accounting for 36.0% of total imports in July 2024.
Within Asia, China and India stood out as major suppliers, providing 55.0% and 18.7% of imports from the region, respectively.
“Our trade dynamics with Asia are crucial for meeting our industrial and consumer needs,” said the report.
Other significant sources included the Rest of Africa, the EAC, and the Middle East, contributing 24.4%, 19.2%, and 13.4% of total imports.
In the EAC, Tanzania and Kenya were the leading sources, accounting for 57.7% and 38.0% of imports to Uganda. This inter-regional trade is vital for enhancing economic integration and promoting local industries.
Overall, while Uganda’s July export earnings reflect positive growth, the data also underscores the need for continued efforts to diversify exports and reduce dependence on imports.
As the Ministry of Finance continues to assess these trends, fostering sustainable economic development will remain a priority for the government.
