Tanzania Surpasses Kenya as Uganda’s Largest Import Source in Africa

Tanzania has overtaken Kenya as Uganda’s largest source of imports, with $1.77 billion in goods compared to Kenya’s $816.71 million. Gold constitutes over half of imports from Tanzania, which have dramatically increased, while Uganda’s total imports surged to $10.78 billion in the past year.

Recent data indicates that Tanzania has surpassed Kenya as Uganda’s leading source of imports, signaling a significant shift in trade dynamics within East Africa. According to the Bank of Uganda, during the year ending June 2024, Uganda imported goods valued at $4.17 billion from the Common Market for Eastern and Southern Africa (Comesa) and the rest of Africa, with nearly half of that amount sourced from Tanzania. Specifically, goods imported from Tanzania primarily include gold, iron products, groundnuts, and various types of glass containers, demonstrating a diversification of Uganda’s import portfolio. In financial terms, Uganda’s spending on imports from Tanzania has surged to $1.77 billion, which is a threefold increase compared to $450.46 million recorded in the previous year. In contrast, Kenya’s contribution as an import source has diminished slightly to $816.71 million, marking a decrease from $860.71 million in the same period last year. South Africa follows Kenya with an import value of $268.8 million. Additionally, data reveals that gold constitutes over 50% of Uganda’s imports from Tanzania, with the Uganda Revenue Authority noting that gold imports reached 1.08 trillion shillings in 2023. The statistics provide insights into Uganda’s total imports, which amounted to $10.78 billion for the year, reflecting an upward trend from $8.86 billion the previous year.

The changing landscape of Uganda’s import sources highlights the evolving nature of trade relationships in East Africa. Traditionally dominated by Kenya, Uganda’s import dynamics are illustrating a substantial realignment towards Tanzania. The disaggregated data from key Ugandan regulatory bodies reveals the scope and magnitude of imports from Tanzania and Kenya, outlining the specific goods that characterize these transactions and the financial implications of these changes. Understanding these trends is paramount for businesses and policymakers in navigating the region’s economic environment.

In conclusion, the recent data from the Bank of Uganda underscores a turning point in trade dynamics between Uganda, Kenya, and Tanzania. With Tanzania emerging as the largest source of Uganda’s imports from Africa, there are notable implications for regional trade strategies. This shift, driven by significant increases in gold imports alongside diversified product offerings, necessitates a reevaluation of existing trade relationships and policies in the East African Community.

Original Source: ntvkenya.co.ke