Uganda’s regional trade hits record high
Jul 04, 2007
INFORMAL trade between Uganda and its five neighbours went up considerably between 2005 and 2006, according to a survey conducted by the Central Bank, the Uganda Bureau of Statistics and the Uganda Revenue Authority.
By Sylvia Juuko
and Steven Candia
INFORMAL trade between Uganda and its five neighbours went up considerably between 2005 and 2006, according to a survey conducted by the Central Bank, the Uganda Bureau of Statistics and the Uganda Revenue Authority.
Exports increased by 15.7%, from $200m to $231m, while imports rose by 22.4%, from $66m to over $80m.
“Informal cross-border trade between Uganda and her neighbours is significant, involving huge transactions of both agricultural and industrial products,†said Dr. David Kihangire, the director for research at the Central Bank, presenting the findings at the Grand Imperial Hotel in Kampala yesterday.
The survey involved monitoring trade over five months at the 14 main border posts with Kenya, Tanzania, Rwanda, the Democratic republic of Congo (DRC) and Sudan. It found that industrial products accounted for 51% of total informal exports, while agricultural products accounted for 48.7%.
Particularly the volumes of agricultural products confirmed Uganda’s position as a major food basket in the region, Kihangire noted.
“Generally, the findings indicate that Uganda has a comparative advantage in agricultural products exports which should be explored,†he said.
Fish was found to be the main export product, earning the country sh61b ($33m), followed by maize (sh50b), beans (sh37b) and groundnuts (sh11b). The survey also found that non-traditional cash crops had surpassed traditional cash crops in earnings.
Dominant among the informal imports into Uganda were polythene bags (buveera), which accounted for one-third of total imports, and second-hand clothes, accounting for almost 9%.
Kenya continued to be Uganda’s leading trading partner, followed by DRC, Rwanda, Tanzania and Sudan, according to the findings.
“Kenya was the main trading partner in informal trade, with exports and imports estimated at $96.9m and $63.9m respectively,†Kihangire announced.
Trade with Sudan had soared following the restoration of peace in South Sudan, but went down again due to rebel activity along the trade routes. “Exports to Sudan fell slightly from $9m in 2005 to $ 7.8m in 2006 due to insecurity, caused by rebels along the border, forcing some traders to lose merchandise.â€
The survey showed that vehicles, bicycles and people carrying goods were the most used modes of transport in informal trade, with the biggest bulk of trade concentrated at Busia and Malaba border towns.
The DRC was the main export destination of Uganda’s manufactured products, which were valued at $58m.
Morris Kagimu Kiwanuka, the state minister for economic monitoring, stressed that Uganda should take advantage of regional initiatives like the East African Community and COMESA to double trade.
“Uganda is positioned strategically to exploit trade opportunities offered in the DRC and southern Sudan following the normalisation of security in these countries,†he said at the launch of the report.
and Steven Candia
INFORMAL trade between Uganda and its five neighbours went up considerably between 2005 and 2006, according to a survey conducted by the Central Bank, the Uganda Bureau of Statistics and the Uganda Revenue Authority.
Exports increased by 15.7%, from $200m to $231m, while imports rose by 22.4%, from $66m to over $80m.
“Informal cross-border trade between Uganda and her neighbours is significant, involving huge transactions of both agricultural and industrial products,†said Dr. David Kihangire, the director for research at the Central Bank, presenting the findings at the Grand Imperial Hotel in Kampala yesterday.
The survey involved monitoring trade over five months at the 14 main border posts with Kenya, Tanzania, Rwanda, the Democratic republic of Congo (DRC) and Sudan. It found that industrial products accounted for 51% of total informal exports, while agricultural products accounted for 48.7%.
Particularly the volumes of agricultural products confirmed Uganda’s position as a major food basket in the region, Kihangire noted.
“Generally, the findings indicate that Uganda has a comparative advantage in agricultural products exports which should be explored,†he said.
Fish was found to be the main export product, earning the country sh61b ($33m), followed by maize (sh50b), beans (sh37b) and groundnuts (sh11b). The survey also found that non-traditional cash crops had surpassed traditional cash crops in earnings.
Dominant among the informal imports into Uganda were polythene bags (buveera), which accounted for one-third of total imports, and second-hand clothes, accounting for almost 9%.
Kenya continued to be Uganda’s leading trading partner, followed by DRC, Rwanda, Tanzania and Sudan, according to the findings.
“Kenya was the main trading partner in informal trade, with exports and imports estimated at $96.9m and $63.9m respectively,†Kihangire announced.
Trade with Sudan had soared following the restoration of peace in South Sudan, but went down again due to rebel activity along the trade routes. “Exports to Sudan fell slightly from $9m in 2005 to $ 7.8m in 2006 due to insecurity, caused by rebels along the border, forcing some traders to lose merchandise.â€
The survey showed that vehicles, bicycles and people carrying goods were the most used modes of transport in informal trade, with the biggest bulk of trade concentrated at Busia and Malaba border towns.
The DRC was the main export destination of Uganda’s manufactured products, which were valued at $58m.
Morris Kagimu Kiwanuka, the state minister for economic monitoring, stressed that Uganda should take advantage of regional initiatives like the East African Community and COMESA to double trade.
“Uganda is positioned strategically to exploit trade opportunities offered in the DRC and southern Sudan following the normalisation of security in these countries,†he said at the launch of the report.