Additionally, the macroeconomic policy department's monthly report on the performance of the economy in April 2023, which was issued today, showed that the increase was mostly due to greater export profits from mineral goods, tobacco, maize, and cotton that were reported throughout the month.
“Coffee exports during the month amounted to $71.54 million, an 8.4 percent increase from $66.03 million in February 2023. This growth was mainly attributed to exporters who off-loaded coffee from their warehouses for sale to benefit from the rising international price of Robusta coffee,” an extract from the report reads.
Officials from the ministry said that March 2023 saw an increase in merchandise exports of 85.4% from $363.74 million in March 2022 to $674.54 million.
This was mostly owing to higher export revenue from tobacco, maize, and mineral exports throughout the month. Following the return of gold trading in August 2022, the price of minerals, especially gold, surged substantially.
With 35.7% of all exports to the EAC in March 2023, the East African Community (EAC) continued to be Uganda's largest export market. In terms of trade balance with the EAC in March 2023, Uganda had a $15.9 million surplus.
“This was an 84.4% decline from the surplus of $102.4 million in the previous month. The decline was largely on account of imports from the Democratic Republic of Congo, Tanzania, and Kenya which increased considerably by $60.93 million, $60.1 million, and $14.19 million respectively,” Dr Albert Musisi the commissioner macroeconomic department, stated.
However, Tanzania and Kenya reported trade deficits, while Congo, South Sudan, Rwanda, and Burundi reported surpluses.
In related news, the Ministry of Dr. Musisi said that exports to the EAC rose by 26.6%from $190.2 million to $240.9 million in March 2023, with Kenya accounting for the highest part followed by the Democratic Republic of the Congo. Tanzania was the country with the most imports, followed by Kenya. Asia accounted for 14.6% of exports from the EAC, with 32.3 percent going to the Middle East.
The data reveals that from $647.09 million in February 2023 to $916.47 million in March 2023, the value of merchandise imports grew by 41.6%. Increased private sector imports of minerals (excluding petroleum products), vegetables, drinks, fats and oils, and animal products were mostly responsible for this development.
Comparing March 2022 to March 2023, it can be seen that imports of goods increased by 39.6%, from $656.69 million to $916.47 million. This growth was primarily fueled by higher import quantities of goods including machinery, equipment, and cars, as well as mineral materials (excluding petroleum products).
According to the data, Uganda's merchandise trade deficit decreased from $297.66 million in February to $241.93 million in March 2023, a decrease of 18.7%. The merchandise trade deficit decreased from $292.94 million in March 2022 to $241.93 million in March 2023, a 17.4% decrease year over year.
