Most imported. Vehicles were some of the most imported products in
March, according to Bank of Uganda data. PHOTO BY ISMAIL KEZAALA
Kampala.
Uganda imported goods worth $874m (Shs3.2 trillion) in March, the
highest ever compared to $608m (Shs2.2 trillion) in February, according
to data from Bank of Uganda.
According to a Bank of Uganda report issued early this month, the biggest share of imports was recorded in mineral products (excluding petroleum products), which stood at $312m (Shs1.1 trillion) in the month under review.
According to a Bank of Uganda report issued early this month, the biggest share of imports was recorded in mineral products (excluding petroleum products), which stood at $312m (Shs1.1 trillion) in the month under review.
This was followed by machinery equipment, whose import bill was reported at $94m (Shs354b).
Other products mostly imported in the period included vehicles and accessories, chemical and related products, vegetable products, animal, beverages, fats and oil, Base metals and their products.
Other products mostly imported in the period included vehicles and accessories, chemical and related products, vegetable products, animal, beverages, fats and oil, Base metals and their products.
Commenting
on the development, Mr Ramathan Ggoobi, an economist and a lecturer at
Makerere University Business School, said the growth trajectory,
especially for mineral products could be because of the
industrialisation drive that Uganda is currently pursuing.
This is a good trend, he said, noting that the manufacturing sector was importing a lot of intermediate good to be used as raw materials.
“Both exports and imports are registering record performance on the account of the recovery of the economy, Mr Ggoobi said.
Government has in the last two years commissioned a number of industries that are expected to spur growth as well as create employment.
This is a good trend, he said, noting that the manufacturing sector was importing a lot of intermediate good to be used as raw materials.
“Both exports and imports are registering record performance on the account of the recovery of the economy, Mr Ggoobi said.
Government has in the last two years commissioned a number of industries that are expected to spur growth as well as create employment.
Mr
Daniel Birungi, the Uganda Manufacturers’ Association chief executive
officer, said in an interview that a number of factories had been opened
up particularly this year, noting that the increasing imports could be
an indication of expected increase in production.
“Yes the raw materials are coming in, goods are going to be produced, but do they have markets?” he said, urging government to have a discussion on local content and market access.
Markets for these products, he said, must be created through public procurement as well as deliberate policies that will open up markets in neighbouring countries.
“Yes the raw materials are coming in, goods are going to be produced, but do they have markets?” he said, urging government to have a discussion on local content and market access.
Markets for these products, he said, must be created through public procurement as well as deliberate policies that will open up markets in neighbouring countries.
In
the month under review, there has also been tremendous growth in
exports that were recorded at $606m (Shs2.2 trillion), the highest ever.
“Surprisingly, these exports are coming from non-traditional category. Gold turning out to be the leading export commodity in the same month worth $363m (Shs1.3trillion) is massive jumping from $70m earned the previous month of February,” Mr Ggoobi said.
“Surprisingly, these exports are coming from non-traditional category. Gold turning out to be the leading export commodity in the same month worth $363m (Shs1.3trillion) is massive jumping from $70m earned the previous month of February,” Mr Ggoobi said.
Rwanda border conflict
The growth trajectory, according to Mr Mr Ramathan gives some optimism for a full recovery of the economy that has been suffering a slowdown since 2016. This, he said, should be sustained, noting that the current border conflict between Uganda and Rwanda might be spoiler if not well handled. In March Uganda’s exports receipt to Rwanda dropped to Shs9.9b up from Shs54.7b) in February.
The growth trajectory, according to Mr Mr Ramathan gives some optimism for a full recovery of the economy that has been suffering a slowdown since 2016. This, he said, should be sustained, noting that the current border conflict between Uganda and Rwanda might be spoiler if not well handled. In March Uganda’s exports receipt to Rwanda dropped to Shs9.9b up from Shs54.7b) in February.
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