According to the report from Bank of Uganda, Uganda exported up to $55.9 million worth of goods to South Sudan in January and this represents 54% increase from the previous month.
This has made the northern neighbors emerging Uganda’s top export market, surpassing Kenya which signifies shift in regional trade patterns.
For long Kenya was biggest exporter market for Uganda’s goods within the region, and there has been a shift which left Kenya’s market pushed to third position with Democratic Republic of Congo being second with $45.4 million worth of goods exported in the month of January.
Uganda shipped $35.7 million worth of goods to Kenya in January, a 1% drop from the previous month.
According to trade experts, the shift is a significant boon for Uganda’s economy, which has been seeking to diversify its export markets.
Major manufactured goods exported from Uganda to South Sudan market include; cement, sugar, fast-moving consumer goods, and cereals, and the demand for such goods is expected to grow which drives growth in the bilateral trade.
“The growth in trade with South Sudan is expected to continue, driven by growing demand for Ugandan goods,” said Allan Ssenyondwa, the manager of policy and advocacy at the Uganda Manufacturers Association. “These exports are a shot in the arm for Uganda’s economy, and we’re thrilled to see our manufacturers making inroads into the regional market.”
The development is also a testament to the growing economic ties between Uganda and South Sudan, which have been fostered through various regional trade agreements and infrastructure development projects.
As Uganda expands its export base, countries such as South Sudan, the Democratic Republic of Congo, and Sudan are likely to play an increasingly important role.
Uganda’s exports to South Sudan have been increasing at an annualized rate of 12.2% from 2018 to 2023.
In related news, Uganda’s exports to Sudan increased by 63% in January, with goods worth $15.2 million exported to the country. Coffee, tea, and spices are among the main products exported to Sudan, which is a leading coffee market destination in Africa for Uganda.
