KAMPALA — Uganda has significantly increased its trade with Tanzania, making it the country’s primary source of imports within the East African Community (EAC), according to a recent report from Uganda’s Ministry of Finance.
The Ministry’s “Performance of the Economy” report for June revealed that, over the 12 months leading up to May, 83% of all goods Uganda imported from the EAC originated from Tanzania. This amounted to UGX 1.6 trillion out of the UGX 1.9 trillion total imports from the EAC.
The Monitor, a leading Ugandan newspaper, attributes this surge primarily to increased imports of gold and rice from Tanzania. Historically, Kenya had been Uganda’s top import source within the EAC until trade dynamics began shifting in 2021.
While the report did not detail the specific quantity of gold traded between Uganda and Tanzania during this period, data from the Bank of Uganda indicated that Uganda imported mineral products worth $2.7 billion, with 90% of these being gold.
Uganda also sources gold from Zimbabwe and the Democratic Republic of Congo, which is then refined domestically before being exported. Gold remains Uganda’s most valuable export, generating approximately $2.8 billion (UGX 10.3 trillion) in revenue.
The Ministry of Finance report noted that 42.7% of Uganda’s unrefined gold imports came from the EAC, with Asia, the Middle East, and the rest of Africa supplying 24.3%, 13.8%, and 12.2%, respectively.
On the export front, the Middle East continues to be Uganda’s largest market, absorbing around 34% of its total exports. In May alone, the Middle East purchased goods worth $297.6 million from Uganda, predominantly gold.
During the same period, the EAC accounted for 26.4% of Uganda’s exports, followed by Asia at 22.8%, and the European Union at 12.6%.
This shift in trade patterns underscores the evolving economic landscape within the EAC and highlights Tanzania’s growing role in regional commerce.
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