Uganda eyes Africa-wide market to cut EAC trade deficit
Currently, Uganda’s exports are largely destined for markets such as the Democratic Republic of Congo, Kenya, South Sudan, Algeria, the Netherlands, Germany and the United Arab Emirates.
Data from the United Nations COMTRADE database shows that Uganda earned $478.33 million from exports to the Democratic Republic of Congo in 2024, with key products including steel, soap, maize, meat and milk.
KAMPALA - The Government, through the Ministry of Trade, Industry and Cooperatives (MTIC), is looking to the African Continental Free Trade Area (AfCFTA) to secure new markets for Ugandan coffee, tea, dairy products, fish and pharmaceuticals.
The strategy is aimed at reducing the persistent trade deficits Uganda continues to record within the East African Community (EAC).
During the second quarter of the 2024/25 financial year, Uganda posted a trade deficit of $162.5 million within the EAC, with exports valued at $631 million against imports of $793.5 million.
According to the Bank of Uganda, this marked a deterioration from the previous quarter, when the deficit stood at $134.5 million.
Uganda’s largest trade imbalance was recorded with Tanzania, where exports amounted to $54.3 million while imports reached $551.3 million, resulting in a deficit of $497.0 million.
In a ministry document outlining key achievements as Uganda prepares to mark 40 years of NRM government on January 26, MTIC notes that it is now turning to the AfCFTA, a market of 1.3 billion people with a combined GDP of $3.4 trillion, to expand export destinations for selected commodities.
Currently, Uganda’s exports are largely destined for markets such as the Democratic Republic of Congo, Kenya, South Sudan, Algeria, the Netherlands, Germany and the United Arab Emirates.
Data from the United Nations COMTRADE database shows that Uganda earned $478.33 million from exports to the Democratic Republic of Congo in 2024, with key products including steel, soap, maize, meat and milk.
Exports to Kenya generated $589.63 million in the same period, largely from cereals such as maize, dairy products, charcoal, wood, coffee, fish, iron and steel.
Uganda also earned $62.21 million from exports to Sudan, $293.75 million from Germany, $67.47 million from Algeria, $179.90 million from the Netherlands and $2.61 billion from the United Arab Emirates.
The Ministry of Trade says Nigeria, Algeria and Egypt are among the key markets Uganda intends to leverage under the AfCFTA framework.
In 2024, Uganda signed a commitment document with Nigeria, paving the way for exports including coffee, tea, milk, fish and pharmaceuticals.
MTIC believes the African Continental Free Trade Area presents an opportunity for Uganda to ease trade imbalances currently experienced within the East African Community.