Informal trade boosts export cash
Jun 28, 2009
INFROMAL trade across the border boosted Uganda’s exports earnings in April to $316.9m, up from $252.2m, a year ago, the central bank has said.
By Sylvia Juuko
INFROMAL trade across the border boosted Uganda’s exports earnings in April to $316.9m, up from $252.2m, a year ago, the central bank has said.
Dr. David Kihangire, the executive director research noted that improved trade across the border enabled the country record higher export earnings compared to total imports of $279m.
“For the first time in recent years, the economy recorded a trade surplus in April 2009,†he said.
The central bank monthly report shows that the robust growth in cross border trade included items like beans, sugar and industrial products. These items increased by 72% to $205.6m in April compared to $119.29m in April 2008.
The data shows that informal cross border trade income has been on the rise since the beginning of the year with January recording $125.4m. This rose to $132.7m in February.
Imports on the other hand have been on the downward turn with April’s figure declining by 21.2% from $353.9m in March to $279m in April due to the impact of the global economic downturn.
“The decrease was on account of lower process and reductions in some volumes,†the report added.
Private sector imports on the other hand declined to $261.8m in April compared to $338.2m in March on account of lower oil and non-oil imports.
Non-oil imports like machinery, vehicles and accessories, chemicals and related products, base metals and their products also recorded a 16.4% decline during the period.
The report added that foreign exchange reserves also saw a 14.5% decline to $2.26b in April from $2.42b in March.
“The intervention to stabilise the currency, which was hit by a sudden exit of portfolio flows last year, caused the decline,†said Mary Katarikawe, the director research.
INFROMAL trade across the border boosted Uganda’s exports earnings in April to $316.9m, up from $252.2m, a year ago, the central bank has said.
Dr. David Kihangire, the executive director research noted that improved trade across the border enabled the country record higher export earnings compared to total imports of $279m.
“For the first time in recent years, the economy recorded a trade surplus in April 2009,†he said.
The central bank monthly report shows that the robust growth in cross border trade included items like beans, sugar and industrial products. These items increased by 72% to $205.6m in April compared to $119.29m in April 2008.
The data shows that informal cross border trade income has been on the rise since the beginning of the year with January recording $125.4m. This rose to $132.7m in February.
Imports on the other hand have been on the downward turn with April’s figure declining by 21.2% from $353.9m in March to $279m in April due to the impact of the global economic downturn.
“The decrease was on account of lower process and reductions in some volumes,†the report added.
Private sector imports on the other hand declined to $261.8m in April compared to $338.2m in March on account of lower oil and non-oil imports.
Non-oil imports like machinery, vehicles and accessories, chemicals and related products, base metals and their products also recorded a 16.4% decline during the period.
The report added that foreign exchange reserves also saw a 14.5% decline to $2.26b in April from $2.42b in March.
“The intervention to stabilise the currency, which was hit by a sudden exit of portfolio flows last year, caused the decline,†said Mary Katarikawe, the director research.