Uganda’s trade surplus with DR Congo reaches $53m, the highest in the region

Summary:

• Uganda enjoys its highest trade surplus with the Democratic Republic of Congo, amounting to $53 million in January. Despite deficits with Tanzania and Kenya, Uganda’s exports to the East African Community grow, with the EAC being the top destination.

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Uganda recorded its highest trade surplus with the Democratic Republic of Congo (DRC) in January, amounting to $53.07 million (Ush208.9 billion), as per the Ministry of Finance Performance of the Economy report. DR Congo emerged as the leading destination for Uganda’s exports within the East African Community (EAC), followed by South Sudan, Rwanda, and Burundi. However, deficits were reported with Tanzania and Kenya.

Uganda’s exports to EAC partner states reached $231.47 million, with imports at $209.17 million. The EAC retained its position as the primary export destination, accounting for 37.6 percent of Uganda’s total market share, followed by the Middle East and European Union.

Despite these gains, Uganda faced trade deficits with Asia, the rest of Africa, and Europe, totaling $267.64 million, $118.15 million, and $6.64 million, respectively.

The report highlighted that Uganda’s total exports in December increased marginally to $616.36 million, driven by higher earnings from Simsim, tobacco, and cotton. However, coffee exports experienced a 6.7 percent decline due to weather-related challenges.

Imports decreased by 3.1 percent to $886.24 million in December 2023, primarily due to reduced private sector imports, notably in wood products, electricity, petroleum, and animal products.

Asia remained Uganda’s primary source of imports, with China and India being major contributors, while other significant regions included the EAC, the rest of Africa, and the Middle East.

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