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Uganda’s economic prospects look bright after the country recorded a 17.6 percent increase in exports in August compared to July 2023.
The stemmed from increased earnings from mineral exports, coffee and maize, according to the monthly economic performance report by the ministry of Finance, Planning and Economic Development.
In total Uganda exported merchandise worth $ 669.88 million in August compared to $ 569.78 million in July 2023.
Of the total exports, minerals such as gold accounted for $239 million, taking up the biggest share of 35 percent.
Coffee exports which amounted to $ 121.64 million, accounted for 18 percent of the total exports in August. It was Uganda’s biggest monthly earning from coffee exports.
“This increase [in coffee earnings] was partly on account of the good crop harvest in the South-Western region and good prices on the global market which prompted exporters to release their stock,” the report notes.
The report notes that the biggest share of Uganda’s exports during the month of August 2023 went to the EAC partner states, which accounted for 34.7 % of the exports. This was followed by the Middle East with 22.6%, Asia with 20.3% and the European Union at 12.5%.
“On a country specific level, the United Arab Emirates remained Uganda’s largest destination of exports during the month accounting for 21.9% of the total value of merchandise exported. Other notable countries were India, South Sudan and Kenya with 14.9%, 7.7% and 6.7% respectively of the total value of goods exported during the month,” the report revealed.
Still the increase in exports did not offset our trade deficit.
The report shows that Uganda imported goods worth $ 1 billion in August accounting for a deficit of $331 million.
Worse, Uganda traded at a deficit of $ 64.41 million with the rest of the EAC partner states compared to a surplus of $ 23.98 million registered in July 2023.
Minerals, petroleum, vehicles, machinery and wood products formed the bulk of our imports according to the report.
Asia, according to the report, remained Uganda’s biggest source of imports in August 2023, accounting for 33.3% of all imports for the month. This was followed by the EAC, Middle East and the Rest of Africa accounting for 27.7%, 19.4% and 10.8% respectively.
At country level, Tanzania and China were Uganda’s largest source of imports, accounting for 18.6% and 17.0% of the total imports during the month.
Other key highlights of the report include the country’s failure to hit the revenue collection target for the month of August.
Government had projected to collect domestic revenue amounting to Shs 2.1 trillion but the target was missed by Shs 158 billion.