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– Uganda’s trade balance has shown significant improvement in the past quarter, driven by a surge in exports, according to data from the Uganda Bureau of Statistics (UBOS).
The country’s exports grew by 24% in the quarter ending June 2024, reaching $1.3 billion, up from $1.1 billion in the same period last year. The growth was largely driven by increased exports of agricultural products, including coffee, cotton, and tobacco, as well as minerals such as gold and copper.
Coffee exports, in particular, saw a significant increase, rising by 30% due to favorable weather conditions and improved farming practices.
On the other hand, imports declined by 12% to $1.5 billion, down from $1.7 billion in the same period last year. The decrease was largely attributed to reduced imports of capital goods and machinery.
The improvement in the trade balance has been welcomed by economists and business leaders, who say it will help to stabilize the shilling and reduce pressure on foreign exchange reserves.
“This is a positive development for the economy,” said Dr. Adam Mugume, Executive Director of the Uganda Bureau of Statistics. “The growth in exports is a testament to the country’s diversification efforts and the competitiveness of our products in the global market.”
The government has set a target to increase exports to $5 billion by 2025, as part of its strategy to transform the economy and achieve middle-income status.
To achieve this goal, the government has implemented various initiatives, including the development of export-oriented industries, improvement of infrastructure, and enhancement of trade facilitation measures.
The private sector has also been encouraged to take advantage of regional and international trade agreements, such as the African Continental Free Trade Area (AfCFTA) and the East African Community (EAC) Common Market.