Uganda’s earnings from export processing zones grew to a record high of $1.2 billion for financial Year 2020/21 from $154 million in Financial Year 2019/20, according to a report by the Uganda Free Zones Authority.
The report shows that for two years in a row, semi-processed gold was the driver of exports, accounting for 93 percent of total export earnings at $1.1 billion. Flower and horticulture exports ranked second, accounting for 3.7 percent of exports at $46 million. Tobacco ranked third, accounting for 3.1 percent of exports at $38 million.
Sandalwood essential oils earned the country $730,000 in 2020, an increase from $299,000 registered in 2019 while cocoa beans exports earned $160,000. Underground natural calcium phosphates brought the least export earnings at $5,000.
Wheat flour exports recorded a 65 percent decline to $1 million in 2020 from $4 million registered in 2019.
Uganda Free Zones Authority (UFZA) Executive Director Hez Kimoomi Alinda attributed the robust performance during that period, despite the challenges arising from the COVID-19 pandemic, to improved processing and exporting of minerals and tobacco.
“Simba Gold Refinery Limited, M/s Metal Testing and Smelting Limited and Aurnish Trading Limited were leading exporters during financial year 2020-21, accounting for 93 percent of all total export earnings generated from free zones.” Hez Kimoomi Alinda
United Arab Emirates remained the major destination for exports from free zones, with significant increase to $1.16 billion in 2020 from $106.4 million the previous year, most of it from gold trade.
Exports to the UAE represented 93 percent of total free zones trade. Netherlands ranked second contributing $39 million in 2020, mostly from flower exports.
Other major destinations for the free zones originating exports were Kenya ($19 million), Belgium ($6 million), Turkey ($2 million), Germany ($2 million), Italy ($2 million), USA ($1.9 million), Russia ($1.5 million) and South Sudan $1.2 million.
Other countries that were recipients of Ugandan exports were Indonesia, South Africa, Tunisia, South Korea, Ukraine, Japan, Hungary, Norway, Kuwait, Ghana and Poland.
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