Driving our Country’s Exports

Uganda’s exports have increased by USD 2.7Bn from USD 4.2Bn in 2022 to USD 6.9Bn in 2023 according to Bank of Uganda statistics. While this is impressive, the rate of growth of exports has been slower in the last ten years; and even slower has been the conversion rate of raw materials abundant in Uganda into value-added goods for export. Exports per capita have stagnated since 2012 with increases in only about 11 sectors that include gold, beverages, fruits and vegetables, dairy and cereal products. This worries many Ugandans who see population increasing at a faster (although the real rate has dropped – fertility rate in 2000 at 6.8 and in 2021 at 4.6) pace, driving down growth; and graduates emerging out of institutions with no matching source of good employment. This is why PACEID took these cares and turned them into a work agenda to bring fresh thinking in the area of exports so as to grow the country’s capacity to manage more pressures as we grow. The increase in export revenues we have had is mainly in agricultural and mineral exports. This was driven chiefly by Uganda’s key trading partners such as Germany, Netherlands, UAE, India, Kenya and Rwanda. For example, Uganda for the first time had a positive export balance with the EU but in only in non-value-added products and it is only a short positive run if we do not increase the productive capabilities of firms and improve the business environment and bring down the costs of production. The drivers of this export recovery include, among others, resuscitation measures post-COVID-19 lockdowns like partial tax relief measures; provision of credit to service sectors such as tourism; continuing reforms in the general business environment; and for exporting firms. Key among the drivers of this increase has been the wide awareness created by PACEID in key markets.