Uganda’s exports to South Sudan have reached an all-time high.
The shipments exceeded Uganda’s total exports to Kenya during the time, which totaled $46.2 million (Shs166.3b)
Uganda’s exports to South Sudan have recovered, reaching a new monthly high of $50.6 million in February.
According to Bank of Uganda statistics, Ugandan exports to South Sudan earned $50.6 million (Shs182 billion) in February, up from $39.7 million (Shs142 billion) in January.
The shipments exceeded Uganda’s total exports to Kenya during the time, which totaled $46.2 million (Shs166.3b).
Uganda buys 255 cattle from South Africa to enhance dairy output.
Dr Adam Mugume, director of research at the Bank of Uganda, noted in a Daily Monitor report reviewed by NCMP that South Sudan’s export performance was not out of the ordinary, adding that South Sudan was benefitting from a rise in worldwide oil prices, which increased demand for imports.
Uganda, he claims, exports largely food-related things and re-exports items such as petroleum products and construction materials to South Sudan.
Dr. Fred Muhumuza, an economist and professor in economics at Makerere University, believes the spike is a “seasonal occurrence, encouraged by the reopening of most economies in the area, which might have driven up retroactive demand.”
Despite the hurdles of continuous hostilities, South Sudan remains one of Uganda’s biggest export destinations.
Cereals, maize and wheat flour, sugar, vegetable oils, beer, soft drinks, iron, steel, cement, and motor vehicle re-exports are among Uganda’s top exports to South Sudan.
According to a Bank of Uganda study, Uganda’s exports to South Sudan climbed by 33% to $503.3 million (Shs1.8 trillion) for the fiscal year ended February 2022, up from $353.9 million (Shs1.2 trillion) for the fiscal year ended February 2021.
Sugar exports were $32 million, while cereal flour and cement exports totaled $28.1 million and ($27.6 million, respectively).
Uganda’s exports to South Sudan have climbed at a 46 percent yearly pace over the previous eight years, from $17.3 million in 2012 to $357 million in 2020.
South Sudan is susceptible to a variety of shocks, which are exacerbated by high levels of poverty and food insecurity, which account for around 80% of the population.
In recent months, the nation has also been struck by severe floods, which has killed cattle, destroyed food stores, and damaged crops ahead of the primary harvest season.
South Sudan sends items to Uganda, including gold, scrap iron, and insecticides.