Uganda’s export earnings grew by 35% reaching USD1,079.87 million in Q1, 2019, up from USD799.77 million in Q4, 2018.
This is the highest ever, quarterly earnings- as per Bank of Uganda and Uganda Bureau of Statistics records, dating to 1997.
The record-earnings were boosted by significant growth in earnings from the Middle East that grew by 82.54%, from USD223.72 million to USD408.4 million and a 1428.6% growth in exports earnings from Turkey- USD114.14 million, up from USD7.47 million.
Uganda’s exports earnings from the Middle East were singularly boosted by exports to the United Arab Emirates that grew from USD96.56 million in Q1, 2018, reaching USD212.73 million in Q4, 2018. In Q1, 2019 this further jumped by a whole 86.85% to USd397.48 million.
As of Q1, 2019 the Middle East became Uganda’s largest trading block, overtaking the Comesa countries and the European Union who have previously been the top 2 exporting partners to Uganda. This is gold overtook coffee as Uganda’s biggest export earner.
According to the Central Bank, Uganda exported gold worth $514 million in 2018 compared to USD418 million in 2017.
Kenya and Rwanda hurt Comesa earnings
Comesa, the 21-country bloc has traditionally been Uganda’s biggest source of export revenue, bringing in USD1,489.55 million in 2018, but a political cum trade spat between Uganda and Rwanda, followed by sustained declining earnings from Kenya are slowly diminishing export earnings from the region.
Kenya and Rwanda are the top 2 destinations for Ugandan exports within Comesa, accounting for nearly 50%.
Quarterly earnings from Kenya have been falling since the start of 2018, by 68.82% from USD204.14 million in Q1, 2018 to USD63.66 million by end of Q1, 2019- the lowest ever in 6 years.
On the other hand, a political feud between Rwanda and Uganda- the sisterly nations turned frenemies has all of a sudden led to a 34.31% decline in Rwandan export earnings from USD51.94 million in Q4, 2018 to USD34.12 million in Q1, 2019.
The sharpest decline was recorded between February (the start of the conflict) and April 2019.
Figures from Bank of Uganda show that between February and March, exports earnings from Rwanda fell by 81.79% from USD14.51 million to USD2.64 million. Between March and April 2019, Ugandan export earnings fell by a further 56.14% from USD2.64 million to USD1.16 million. This is the lowest in 13 years, since May 2006 when monthly exports were USD0.28 million.
Rwanda accuses Uganda of supporting her political enemies, an accusation that Uganda has flatly denied.
Rwanda has since February closed all its common border posts with Uganda including; Katuna, Kagitumba, Mirama Hills and Cyanika and ordered its citizens not to travel to Uganda. Rwanda is also said to have ordered its nationals doing business on especially the Ugandan side of the boarder to pack up and go home.
Uganda mainly exports food items, cement, steel, personal care products, beverages and animal products.
At the end of May, Rwandan security officers shot dead two people, a Ugandan and Rwandan at at Hamisavu trading center in Mpororo in Kiruhura village in Kashekye parish, Kamwezi sub-county on the border with Uganda.
The dead Rwandan is said to have been a smuggler who was evading arrest at the time he met his death.