The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Uganda’s export earnings increased both on an annual and monthly basis in July, a new report from the Ministry of Finance shows.
The performance of the economy report for August 2019 shows that export earnings grew by 5.9% from 1.1trillion shillings in June 2019 to 1.2 trillion shillings in July 2019.
This growth was attributed to increased earnings from different export commodities such as coffee, cocoa beans, rice, base metals, fruits, and vegetables.
Earnings from coffee increased following increases in both its volume and the international price, the report says.
The weather has been particularly good for the farmers and there is hope that agriculture exports will continue to be good throughout the year.
Also, compared to July 2018, export receipts increased by 11.9% from USD 284.65 million to USD 318.43 million in July 2019.
The performance was good news to the Uganda shilling’s performance against major currencies like the US dollar and the British pound.
The shilling gained 0.1% against the dollar in August, trading at an average of Shs 3,693.73 to the US dollar in August 2019. This was because of the in supply of foreign currency and particularly the US dollar.
Meanwhile, Uganda’s merchandise trade deficit – where imports are more than exports – reduced on a monthly basis whereas it increased on an annual basis.
In comparison with the previous month, the trade deficit reduced by 17% from USD 278.91 million in June to USD231.42 million in July 2019, following a decline in imports and an increase in exports.
Most of Uganda’s exports (32.4%) went to the middle east, which is the top destination for Uganda’s exports. It is followed by East African Community and the rest of Africa.
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