Uganda Balance of Trade Analysis and Investment Priorites May 2016
by Noah , Admin
According the President Yoweri Kaguta Museveni in his state of the Nation address on 31 May 2016, the Uganda is importing at unprecedented levels and this is affecting the shilling and slowing economic development. The Uganda governemt is thus looking at promoting exports, local manufacturing and infrastructure to improve the balance of trade.
The size of our GDP in shillings was 6 trillion in 1986 and was Shillings 74 trillion by 2014. In US dollars it was 4 billion in 1986 and was US$ 27 billion by 2014.
The size of the GDP of Uganda would be much bigger if we were to export more products.
Uganda's annual Imports are valued at US$875million from China, USD$1.154 billion from India, US$406 million from UAE, US$637 million from the EU; US$89 million from USA ; and US$257 million from South Africa.
Uganda's annual Exports are valued at US$24.8 million to India; US$.62.6 million to UAE; US$433 million to EU; US$27.2 million to USA; US$4.7million to South Africa; and US$54.7 million to China.
The country now looks at promoting exports and infrastructure to improve the balance of trade.
Uganda now produces about 850Mw of electricity compared to the 60mgws of 1986 and looks at adding an extra 1000Mw in the next five years by working on Karuma, Isimba, the mini-hydros, the geo-thermal in Lake Katwe, the gas-powered stations and those using HFO (Heavy Fuel Oil).
We already have a surplus of 100Mw during even the peak hours in the evening (6:00p.m to 10:00p.m). At night only 350Mw is consumed. During the off-peak hours of the day, 500MW are consumed. Therefore, during the night hours after 10:00 p.m., the surplus is 500MW. That is why some factories are being encouraged to operate at night.
Total annual imports are estimated at US$5.528 billion being spent on textiles (US$888million), leather goods (US$0.22million), fruit products (US$20.2million), second hand cars (US$568.7million), carpets, among others.
Uganda now aiming at encouraging foreign investments by availing cheap electricity for manufacturing along with other incentives.
Source: Uganda State of the Nation Address 31st May 2016