Uganda’s goods trade deficit shrank for the fifth straight month in May as exports grew faster than imports into the country, according to data from the Bank of Uganda.
The gap between Uganda’s merchandise imports and exports fell 15.2 per cent year-on-year to $110.8mn (Shs397.5bn), the lowest in three months and the fifth straight month of deficit reduction. That was slower than the revised 55.4 per cent drop recorded in April, when exports rose at their fastest rate in 14 months; in fact, it was the slowest drop in four months.
The report showed the deficit shrank as exports climbed 36.8 per cent from a year earlier while imports increased by 30.1 per cent. Both exports and imports hit record highs, rising to $1.2bn and $1.3bn, respectively.
A rise in the value of coffee and cocoa beans was the main driver of export growth. Coffee exports increased by $116.7mn to $243.9mn, accounting for 36.2 per cent of the overall export bump. Meanwhile, outbound shipments of cocoa beans rose by $86.4mn to $108.6mn, contributing 26.8 per cent to the increase in exports. Gold exports jumped 6.7 per cent to $485.8mn.
Imports grew largely due to private sector imports, which jumped 30 per cent to $1.3bn, with non-oil imports climbing 35.1 per cent to $1.1bn. Growth was particularly driven by mineral products (excluding petroleum products). Other significant contributors to import growth were vegetable products, animal products, beverages, fats and oils; machinery equipment, vehicles and accessories; and base metals and their products.
