Summary:

• Uganda’s trade deficit decreased by 23.4% in April 2024, dropping to $309.01 million from $403.41 million in March. This improvement was due to increased exports and reduced imports, according to the Ministry of Finance. However, the year-on-year deficit widened by 37.0%, driven by higher imports. In the East African Community, Uganda’s trade deficit also improved, falling to $58.59 million from $193.75 million in March.

KAMPALA, (Examiner) – – Uganda’s trade deficit narrowed significantly in April 2024, dropping by 23.4% to $309.01 million (approximately 1.1 trillion Ugandan shillings) from $403.41 million (about 1.4 trillion Ugandan shillings) in March, according to a new report from the Ministry of Finance.

The Ministry’s “Performance of the Economy” report for May 2024, released on Monday, attributes this reduction to an increase in exports alongside a decline in imports.

Despite this monthly improvement, the year-on-year comparison shows a different trend. The trade deficit widened by 37.0%, from $225.53 million in April 2023 to $309.01 million in April 2024. This annual increase was driven by a 25.6% rise in imports, which outpaced a 21.9% growth in exports.

In trade with the East African Community (EAC), Uganda recorded a deficit of $58.59 million in April, a significant improvement from the $193.75 million deficit in March. This reduction was primarily due to a notable decrease in imports from Tanzania, which dropped by $142.67 million compared to the previous month.

At a country-specific level, Uganda faced trade deficits with Tanzania ($151.44 million) and Kenya ($38.79 million). However, it enjoyed trade surpluses with the Democratic Republic of Congo ($56.38 million), South Sudan ($50.32 million), Rwanda ($19.07 million), and Burundi ($5.86 million).

Overall, imports from the EAC decreased by 31.5%, from $381.58 million in March to $261.49 million in April. In contrast, exports to the region increased by 8.0%, from $187.84 million in March to $202.90 million in April.