Tanzania has surpassed Kenya as Uganda’s largest source of imports from Africa, accounting for 42.56% of Uganda’s imports. In the year ending June 2024, Uganda’s imports from Tanzania totaled $1.77 billion, primarily in gold and steel, while imports from Kenya decreased to $816.71 million. Overall, Uganda’s total imports rose to $10.78 billion, reflecting a trend of diversified trade partnerships in East Africa.
Recent data reveals that Tanzania has surpassed Kenya as Uganda’s main source of imports from Africa. Historically, Kenya held this title, but the latest statistics from the Bank of Uganda indicate a significant shift, with nearly half of Uganda’s total imports from Africa originating from Tanzania. For the fiscal year ending June 2024, Uganda’s combined imports from Comesa and other African regions amounted to $4.17 billion, with Tanzania contributing $1.77 billion, a marked increase from $450.46 million the previous year. Tanzania’s dominance in Uganda’s import market is primarily driven by gold, which constitutes over half of the imports from Tanzania. According to Uganda Revenue Authority data, Uganda imported approximately Shs1.08 trillion worth of gold in 2023. Additionally, Tanzania supplied Uganda with rolled iron or non-alloy steel and various containers such as carboys, bottles, and flasks. In comparison, Kenya’s share of Uganda’s total imports dwindled to $816.71 million, down from $860.71 million, placing it in second place. South Africa follows Kenya, with its imports to Uganda increasing to $268.8 million, attributed to products like precious stones and machinery. Notably, imports from Cote D’Ivoire and Burkina Faso also surged, indicating a broader diversification of Uganda’s import sources. Despite Kenya’s decline in rank, it remains a significant supplier of construction materials and petroleum-related products to Uganda. In terms of non-African trade, China tops the list for Uganda’s imports, offering goods valued at $1.93 billion, with substantial contributions also from the UAE and India. Overall, Uganda’s total imports rose to $10.78 billion from the previous year’s $8.86 billion, signaling growth in trade activity across various sectors.
The changing dynamics in Uganda’s import sources reflect shifting economic ties within East Africa. Traditionally, Kenya has been Uganda’s primary trading partner due to geographic proximity and established supply chains. However, recent data suggests that Tanzania’s expanding economic footprint and increasing exports to Uganda are reshaping these relationships. The surge in imports from Tanzania, especially in valuable commodities like gold, underscores the evolving landscape of trade in the region. This shift not only affects trade balances but may also influence future economic policies and partnerships between these nations.
In conclusion, the recent data indicating Tanzania’s rise as Uganda’s largest source of imports signifies a notable shift in the economic relationships within East Africa. With Uganda’s imports from Tanzania increasing dramatically, primarily driven by gold, and Kenya’s share diminishing, this trend highlights the need for both nations to adapt to the changing trade landscape. As Uganda continues to diversify its sources of imports, it is likely to impact regional economic strategies and collaborative efforts between the East African nations.
Original Source: ntvkenya.co.ke
