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

Tanzania has overtaken Kenya as the largest source of imports for Uganda within Africa, with imports from Tanzania amounting to $1.77 billion compared to Kenya’s $816.71 million. This demonstrates a significant shift in regional trade dynamics as Uganda imported a total of $10.78 billion in goods, with gold as a primary import from Tanzania.

Recent data from the Bank of Uganda reveals a significant shift in Uganda’s import sources, with Tanzania surpassing Kenya to become Uganda’s largest supplier within Africa. In the year ending June 2024, Uganda imported approximately $4.17 billion worth of goods from the Common Market for Eastern and Southern Africa (Comesa) and other African nations, with nearly half of that total originating from Tanzania. Notably, gold constituted over half of these imports, followed by rolled iron, groundnuts, and various packaging materials, highlighting Tanzania’s crucial role in Uganda’s import landscape. Detailed statistics indicate that Tanzania supplied 42.56 percent of Uganda’s total imports from Africa, overshadowing Kenya’s contribution, which plummeted to 19.55 percent. Specifically, the value of imports from Tanzania surged to $1.77 billion—more than triple the figure from the previous year—while Kenya’s share modestly declined to $816.71 million. Imports from South Africa also saw a marked increase, indicating a diversification in Uganda’s procurement channels. Kenya’s traditional dominance in Uganda’s import market has diminished as regional trade dynamics evolve. The significant increase in imports from Ghana and Burkina Faso points to broader changes in trade patterns, making it imperative for Kenya to reassess its trade policies to regain its competitive edge. In contrast, Uganda’s total imports from all sources reached $10.78 billion, showcasing robust demand across multiple sectors, with China leading as the largest non-African supplier.

This change in import dynamics reflects Uganda’s shifting trade relationships in East Africa. Traditionally, Kenya was the primary supplier for Uganda, but recent trade statistics indicate a growing reliance on Tanzanian imports. This shift emphasizes potential economic adjustments and highlights Tanzania’s increasing role in the regional economy. Additionally, the diversification of sources for Uganda’s imports may be attributed to various factors, including market accessibility, changing trade agreements, and evolving economic partnerships within the region.

In summary, Uganda’s transition from Kenyan dominance in imports to reliance on Tanzania marks a significant development in East African trade relations. The data shows a clear trend toward increased imports from Tanzania, driven mostly by gold and iron supplies. This shift necessitates a reevaluation of Kenya’s strategy in regional trade, as other countries, including South Africa, are also enhancing their export footprints in Uganda. The overall increase in Uganda’s imports reflects a broader trend toward economic growth and diversification within the African continent.

Original Source: ntvkenya.co.ke