Both exports and imports declined for the second month running, according to data from Bank of Uganda.
This,
according to the Central Bank, resulted from the global economic
lockdowns that were necessitated by the need to reduce the spread of
Covid-19.
According to the report running to March, export receipts declined by 11 per cent while imports dropped by 10 per cent.
Imports declined to $492m in March up from $548m in February, according to the Central Bank.
Imports from Asia reported the largest decline from $246m to $243m in February while those from EU dropped to $34.5m from $88.1m.
Imports from Asia reported the largest decline from $246m to $243m in February while those from EU dropped to $34.5m from $88.1m.
However,
during the period, government imports increased by 54 per cent to
$32.1m (Shs118b) up from $20.2m (Shs74b) in February, while private
sector imports declined by 14 per cent from $528m (Shs2 trillion) in
February to $460m (Shs1.7 trillion).
Oil imports
declined to $71m (Shs269b) from $81m (Shs307b), while non-oil imports
fell by 15 per cent from $440m in February to $383m.
Exports receipts also fell with gold, which has for some three
years been Uganda’s largest export commodity declining by 46 per cent to
$60.9m (Shs231b) down from $89m (Shs338b) in February.
The
report also indicates that coffee, which is the country’s largest
agricultural export, suffered a slight decline in earnings from $46.7m
to $45.8m.
Cotton exports during the period declined
to $3.9m (Shs14b) from $7m (Shs26b) in February, while flower exports
fell to $3.2m (Shs12b) from $5.4m (Shs20b) in the period.
Uganda exports much of its flowers to Europe, which has been under lockdowns with auction markets operating below capacity.
Recently,
Ms Esther Nekambi, the Uganda Flowers Export Association executive
director, said they had registered a huge decline in both exports
volumes and earnings.
“Our members reduced export
volumes because most of the orders were cancelled. This is because the
destination countries went into lockdown,” she said, noting many of the
exporters had been exporting through agents whose supply capacity was
mostly limited to supermarkets.
“Right now it is still
early to quantify how much the country has lost but most members have
set up camps to allow their workers to work in shifts,” she said in
April.
Maize, which is mainly exported to neighbouring
countries, also suffered a decline, fetching earnings of $7.8m (Shs30b)
from $10m (Shs41b) in February.
dnakaweesi@ug.nationmedia.com
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