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Uganda’s exports to Europe now overtake imports
Coffee has seen Uganda exports to EU rise above imports. Photo / File
What you need to know:
- The balance, details indicate, has been due to rising coffee exports, while Uganda has seen a significant reduction in machinery imports from EU countries
Uganda now exports more than it imports from the European Union (EU), which commands a favourable balance of trade position.
The balance, details indicate, has been due to rising coffee exports, while Uganda has seen a significant reduction in machinery imports from EU countries.
Ambassador Jan Sadek, the EU head of delegation to Uganda, said out of the 1.5b euros worth of export between the two markets, Uganda has accrued 800m euros (about Shs3.3 trillion) in export value compared to 700m euros (about Shs2.9 trillion) registered by the EU.
This means for the first time in recent history, Uganda has been able to deliver more exports to the largest single market in the world with a population of approximately 450 million people, and a GDP of 16 trillion euros.
“We are proud to see that there is a balance in trade,” said Amb Sadek ahead of the third Uganda-EU Business Forum, which seeks to facilitate structured collaboration between the EU and Uganda’s private sector and public actors.
The Forum, expected to be held between March 5 and March 7 in Kampala will be the largest and most influential joint Uganda-EU event on doing business and investing in Uganda.
Mr Humphrey Nzeyi, the Private Sector Foundation Uganda (PSFU) chairman, said the favourable balance of trade has been achieved because of increasing foreign director investment from the EU while at the same time, there has been an increase in the intake of Ugandan exports by EU countries.
Value of trade
Trade between Uganda and the EU stands at 1.5b euros, of which about 800m euros comprises Uganda’s exports to the EU, while 700m euros accounts for EU imports into Uganda.
“The EU market offers great opportunities for entrepreneurs. Uganda has lots of trade advantages with Europe and we need to build and capitalise, focusing on value addition and standards for quality exports,” Mr Nzeyi said, noting that the Forum presents a priceless opportunity for Ugandans to expand into new markets, promote Ugandan services and products and attract investment in the country.
Mr Morrison Rwakakamba, the Uganda Investment Authority chairman, said the Forum offers Uganda an opportunity to improve its trade balance with the EU, noting that UIA was pushing the industrialisation agenda and working with key agencies such as the Uganda National Bureau of Standards to improve quality of products that access the market.
The previous sessions of the Forum resulted in tangible results, among which include profiling 100 businesses seeking equity investments, loans, and partnership opportunities, as well as pitching 40 businesses to potential investors.
