Uganda’s exports from Informal Cross Border Trade (ICBT) increased by about Shs6 billion in the month of June compared to May, the latest government report shows.
According to the monthly economic performance July report issued by the Ministry of Finance, Planning and Economic Development, exports from ICBT in June were $40.5 million (Shs143.184 billion) in June 2021, up from $38.8 million (Shs137.174 billion) in May 2021
This was attributed to an increase in the value of exports of coffee, minerals, cotton, tea, tobacco, simsim, beans and flowers during this period.
On an annual basis, the ICBT exports increased from $1.23 million (Shs4.348 billion) in June 2020 to $ 40.49 million (Shs143.149 billion) in June 2021 largely due to higher exports to Democratic Republic of Congo (DRC).
The share of exports to the EAC and the Rest of Africa increased to 26.0 percent and 15.9 percent from 23.7 percent and 10.0 percent, respectively with that change attributed to benefits of regional integration.
However, export receipts declined by 3.9 per cent from $469.98 million (Shs1.661 trillion in May 2021 to $451.72 million (Shs1.597 trillion) in June 2021.
“This performance was attributed to lower export receipts of commodities like mineral products, tea, tobacco and maize,” the report states.
In terms of exports, the Middle East remained the leading destination for Uganda’s exports making up for 37.7 percent of total exports. On an annual basis, the value of imports increased by 72.1 percent to $933.6 million (Shs3.300 trillion) in June 2021 from $542.6 million (Shs1.918 trillion) in June 2020.
The Uganda Bureau of Statistics (UBOS) reports that most of Uganda’s informal trade exports go to DR Congo followed by Kenya. South Sudan takes the third position. In 2018, UBOS says, informal exports accounted for USD 546.6 million (2 trillion shillings) of Uganda’s earnings, a 9 percent increase from what the country earned in 2016.