KAMPALA – Uganda’s sugar exports declined by 54% decline amid continued trade wars with neighbouring East African countries.
Data from Bank of Uganda indicates that for the month ending June, Uganda exported 14,991 tonnes of sugar, fetching $7.4m (Shs27.3b) down from 23,212 tonnes, which fetched $11.4m (Shs42.3b) in May.
The decline is blamed on Tanzania and Kenya continuing to restrict Uganda’s sugar.
Kenya in July 2020 banned sugar imports, opting to solve challenges facing the country’s sugar industry.
The ban means that at least 35,000 tonnes of sugar exports from Uganda will be locked out of Kenya, which is expected to increase Uganda’s stockpile, according to Uganda Sugar Manufacturers Association.
Tanzania, which had previously completely banned exports from Uganda, only allows in about 20,000 tonnes of sugar.
Uganda’s biggest sugar producer remain Kakira Sugar Works with an annual production of 180,000 tonnes while Kinyara Sugar Works produces 120,000 tonnes. Sugar Corporation of Uganda Limited produces about 100,000 toones.
According to Ministry of Trade, Uganda produces 510,000 tonnes of sugar out of which 360,000 tonnes are consumed locally.
The surplus, which has now grown to 170,000 tonnes, is exported within East Africa, Comesa and DR Congo.