Uganda now exports more to the EU than it imports, marking a historic trade milestone.
Shift attributed to reduced machinery imports and increased coffee sales to Europe.
EU-Uganda trade sees Uganda earn €800 million, surpassing EU’s €700 million earnings for the first time.
Revenue from Uganda’s exports to the European Union is now higher than the revenue the EU makes from exporting goods to the East African country. This new development has tipped the scale in favor of Uganda. The paradigm shift is a result of a higher demand for Uganda’s coffee, while Uganda has reduced imports from the world’s largest market.
Uganda’s bilateral trade with the EU is owing to the fact that Uganda now imports less machinery than it typically does from Europe. At the same time, Europe now purchases a higher volume of coffee from Uganda.
The EU head of Delegation to Uganda, Ambassador Jan Sadek, disclosed that of the €1.5 billion worth of trade between the two countries, Uganda realized €800 million (Shs3.3 trillion), while the EU earned €700 million (Shs2.9 trillion).
“We have quite an impressive trade turnover already, it is about 1.5 billion Euros. What is very important is that this trade is quite balanced,” said Mr Jan Sadek.
This is the first time in Uganda’s history that it has out-earned the world’s largest market, a market with over 450 million people and a GDP of €16 trillion.
The chairman of the Private Sector Foundation Uganda, Mr. Humphrey Nzeyi, noted that part of the reason this milestone was reached is due to the increase in Foreign Direct investment by the EU in the country, alongside an increase in demand for Ugandan products.
“The EU market offers great opportunities for entrepreneurs. Uganda has lots of trade advantages with Europe and we need to build and capitalize, focusing on value addition, and standards for quality exports,” Mr. Nzeyi, stated.
The majority of Uganda’s exports to the European market are agricultural products including coffee, fruits and vegetables, flowers, fish, and fish products. On the other hand, the EU exports to Uganda stems from different industries, including construction, energy, and tourism.
