Non-traditional exports attract bigger earnings

By Alex Balimwikungu
Uganda has since the early 90’s witnessed a widening export base. While the exports were for long subjugated to the unjustified predominance of the traditional export quartet of coffee, tea, cotton and tobacco, the scenario has progressively changed since the late 90’s.

Fish, flowers, cereals, spices, handicrafts and other locally manufactured goods now form a substantial component of Uganda’s export basket. As a result, the economy has witnessed higher earnings from the non-traditional exports sector.

Packing Nile Perch for export

Records at Uganda Exports Promotion Board (UEPB) show that in 1998 for example, traditional exports brought in over 60% of the total earnings with the non-traditional sector contributing about 38%.

In 2003, the export market witnessed a complete reversal with the non-traditional exports contributing 61% of the total export earnings.

In the latest publication of the Uganda Export Promotions Board bulletin, The Export Bulletin, Florence Kata, the executive director UEPB says 2005 was in many ways, a landmark year for Uganda’s export.

She notes that non-traditional exports continued to exhibit positive growth, notably fish exports competing with coffee as Uganda’s leading export. She says the horticulture and floriculture exports have witnessed modest growth.

Kata says factors that have contributed to this positive trend include the increased market awareness through proactive market information dissemination, increased compliance with quality standards, the resilience of the private sector and their willingness to take on more opportunities.

In 2005, the non Traditional Exports contributed over 67% of total export earnings. This is partly attributed to our product development programmes and the aggressive export promotion efforts,” Kata says.

Statistics show that good performance has been notable in sectors such as fish and fish products, flowers, mining, cereals and products, cocoa and products, oil seeds and gold.

In 2005, coffee exports registered a growth in value of 39% to $172m, compared to $124m in 2004. Coffee export volumes declined -11% from pervious year’s levels, which was attributed to a hike in international coffee prices. In the same year, 2005, fish and fish products registered a growth in value of 38% to $142m, compared to 103m in 2004. Fish export volumes grew 23% from previous year’s levels.