Gold sees value of Uganda’s imports from Tanzania soar
A report by the Ministry of Finance indicates that Uganda now sources more imports from Tanzania than any other East African Community (EAC) member state. In details contained in the June Performance of the Economy report, the Ministry of Finance indicates that during the 12 months to May, 83.9 percent of Uganda’s imports sourced from within EAC were from Tanzania, making it the country’s biggest source of imports in the region.
During the period, the report indicates, out of the $532m (Shs1.9 trillion) worth of imports sourced from within East Africa, $446.7m Shs1.6 trillion) were sourced from Tanzania, primarily due to a sustained increase in gold and rice imports. However, the report doesn’t indicate how much gold Uganda imported from Tanzania.
Kenya has for years been Uganda’s largest source of imports within East Africa. However, the increase in gold imports, which was first recorded in 2021, now places Tanzania ahead of Kenya in terms of import sources. Uganda also imports gold from Zimbabwe and DR Congo, after which it is refined and re-exported.
Data from Bank of Uganda indicates that during the 12 months to May, Uganda imported mineral products, of which gold is more than 90 percent, worth $2.7b with a monthly average of $213.8m. Gold is Uganda’s most valuable exports, earning the country about $2.8b (Shs10.3 trillion), according to data from Bank of Uganda.
The commodity is Uganda’s largest export, fetching a monthly average of $236m (Shs871b) worth of foreign exchange. However, a large percentage of exported gold is re-exports, some of which are imported in unrefined form, before they are refined and then re-exported. The Ministry of Finance report also indicates that during the 12 months to May, Uganda imported more from within East Africa, with at least 42.7 percent of total imports sourced from the region. Asia follows closely with a contribution of 24.3 percent, while the Middle East and the rest of Africa account for 13.8 percent and 12.2 percent, respectively.
In terms of exports, the Ministry of Finance shows that the Middle East is Uganda’s biggest export destination, taking at least 34 percent of the total exports. During May, the report indicates in the Middle East, United Arab Emirates purchased $297.6m worth of Uganda’s exports, with gold being the largest export in the region during the month.
Other notable destinations for Uganda’s exports include EAC, which takes up at least 26.4 percent of total exports, followed by Asia and the European Union, which account for 22.8 percent and 12.6 percent, respectively. However, this was a change compared to May 2023, in which EAC was the largest destination of Uganda’s exports, accounting for 41 percent, followed by the Middle East, Asia, and the European Union, respectively.
During the period, exports worth $891.9m were recorded, representing a growth of 39.4 percent from $639.8m in April, mainly due to higher earnings from coffee, gold, flowers, and electricity during the month.
Source: https://www.monitor.co.ug/