Browsing: @EAC

In September 2024, the East African Community (EAC) experienced a notable slowdown in inflation rates across Uganda, Kenya, and Rwanda, while Tanzania’s rates remained stable. Uganda’s trade deficit widened significantly, driven by increased imports, particularly from Tanzania, which accounted for a large portion of Uganda’s total imports. Amid these developments, the Ugandan and Kenyan shillings appreciated slightly against the US dollar, reflecting increased capital inflows. This analysis explores the intricate dynamics of inflation, currency exchange rates, and trade balances within the region, highlighting the implications for economic stability and future policy adjustments.

In June 2024, Uganda’s export earnings dropped by 23.6%, falling to USD 718.60 million, largely due to a decline in mineral product exports. However, coffee exports surged by 27.5%, driven by higher volumes and rising international prices. Key markets like Italy, Germany, and India played a major role in sustaining Uganda’s export growth, especially in the agricultural sector.