Uganda’s Gold Trade Strengthens Import Ties with Tanzania

Tanzania has emerged as Uganda’s primary import partner within the East African Community (EAC), driven by Uganda’s significant gold trade worth close to $3 billion.

Uganda imports unrefined gold, refines it, and then sells the refined product to markets in the EAC, Asia, the EU, and beyond.

According to Uganda’s Ministry of Finance, Uganda now imports more goods from Tanzania than from any other East African nation.

The Ministry’s Performance of the Economy report for June revealed that, in the 12 months leading up to May, 83% of all products Uganda sourced from the EAC came from Tanzania. This equated to Shs1.6 trillion out of the Shs1.9 trillion sourced from imports within the EAC.

The Monitor, a Ugandan newspaper, highlighted that the trade with Tanzania has been bolstered by a sustained increase in the import of gold and rice.

Until 2021, Kenya was Uganda’s top import destination from the EAC, but recent shifts in trade dynamics have changed this.

While the report did not specify the exact volume of gold traded between Tanzania and Uganda, the Bank of Uganda disclosed that Uganda imported mineral products worth $2.7 billion, 90% of which were gold.

Uganda also imports gold from Zimbabwe and the Democratic Republic of Congo, which is then refined and exported.

Gold is Uganda’s most valuable export, generating approximately $2.8 billion (Shs 10.3 trillion). The Ministry of Finance report noted that during the reviewed period, Uganda sourced around 42.7% of its unrefined gold from the EAC, 24.3% from Asia, 13.8% from the Middle East, and 12.2% from the rest of Africa.

The Middle East remains Uganda’s largest export market, accounting for about 34% of its total exports. In May alone, the Middle East purchased $297.6 million worth of products from Uganda, predominantly gold.

The EAC received 26.4% of Uganda’s total exports during the same period, followed by Asia with 22.8% and the European Union with 12.6%.