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HomeAgricultureGold, coffee exports rise as Uganda's economy recovers

Gold, coffee exports rise as Uganda’s economy recovers

Since June 2019 the highest earnings from coffee exports of $48.2m were registered in January 2020

Uganda’s earnings from gold and coffee exports have exponentially increased in the recent months.

According to the latest performance of the economy report released by the ministry of finance last Friday, Uganda’s earnings from gold exports more than doubled from $60.4m (sh223.3b) registered in April 2020 to $126.3m (sh467.3b) in May 2020.

The earnings from gold exports Uganda got in May 2020 are the highest the country has registered in the last one year since June 2019.

The second-highest earnings of $104m were registered in the month in January 2020 followed by $99m realized in December 2019.

Comparatively, the earnings from coffee exports have increased from $36.9m in April 2020 to $42.5m in May 2020.

In the last one year (since June 2019), the highest earnings from coffee exports of $48.2m were registered in January 2020 followed by the August 2019 earnings of $46.3m.

Uganda’s earnings from fish and its products also increased from $6.8m registered in April 2020 to $9.8m registered in May 2020 and earnings from tea exports increased from $6.1m to $6.5m. The highest earnings from fish and its products of $15.5m were registered in November 2019.

Uganda however experienced a decline in the earnings from exportation of maize which decreased from $6.2m registered in April 2020 to $3.5m registered in May 2020. But within the same period, earnings from beans exported increased from $0.6m to $1.2m.

The highest earnings from maize exports ($15.1m) were registered in January 2020 while the highest earnings from beans ($6m) were registered in December 2019.

There was also good news on the exports of flowers. Earnings from exported flowers increased from $2.7m in April 2020 to $3.2m in May 2020. The highest-earning of $10.4m from the exportation of flowers was registered in June 2019.

From a general perspective, export earnings increased by 40.4 percent in May 2020 to $290.93m (Sh1.1trillion) from $207.15m (Sh766.4b) in the previous month.

“This was the first time since January 2020 that exports were registering an increment, implying that the supply chain disruptions caused by the COVID-19 pandemic are starting to ease,” the finance ministry stated in its performance of the economy report.

In comparison with April 2020, the import bill increased by 23.4 percent from $ 334.36m to $412.73m in May 2020 on account of growth in the private sector imports. Just like for the case of exports, May 2020 was the first month since January 2020 that there was an increase in imports into the country.

Commenting on the exponential growth of earnings from gold exports, the minister for minerals development Sarah Opendi said, “Of course we thank investors who have come in to invest in the sector. We would actually got much higher earnings from gold if the sector was well organized. We are earning that without proper organization.”

The minister said her efforts to organize the mining sector are being frustrated by some stakeholders like those in the security.

“There is also gold smuggled and sold out which never gets into our official records. If we could organize better, our earnings from gold will be much more,” Opendi explained.

The minister said her ministry is in advanced stages of finalizing the drafting of the Mining Bill 2020 which they hope to greatly help the country in organizing the sector and to curb the ongoing illegal mining.

Eng. Marvin Byakatonda, who holds a degree in Mining Engineering and works with Kisiita Mining Company, said, “Whereas Uganda has a lot of gold, some of the gold the country exports is not from within. Some gold Uganda exports are from DR Congo partly because DR Congo was banned from selling gold in the international market because their gold is associated with disastrous conflicts ad use of child labour.”

Concerning Uganda’s gold mining, Eng. Byakatonda said, “Most of the gold mines in Uganda are used to be utilized. A big number of those mining are using rudimentary local methods. I think the government needs to disband the Minerals Police because it has created more harm than good. They have failed many licensed mining companies and instead protect those who are carrying out mining illegally.”

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