The trade dynamics between China and Uganda have experienced remarkable growth over the years, showcasing a substantial increase in bilateral trade volume. In 2021, the trade between these two nations exceeded US$1 billion. Uganda predominantly imported vehicles like delivery trucks and large construction vehicles, along with construction equipment from China. In return, Uganda mainly exported commodities such as coffee, gelatine, and various oil seeds to China.
A historical analysis reveals the significant surge in trade between China and Uganda. Back in 1995, China’s exports to Uganda amounted to a modest US$21.6 million. However, over the next nearly three decades, Chinese exports to Uganda saw an astonishing annual growth rate of over 26%. Conversely, Uganda’s exports to China in 1995 stood at a mere US$115k, but they too experienced substantial growth, averaging at least 25% annually over recent years.
Comparing this with the trade relationship between Uganda and the United States reveals a different trajectory. In 2021, the United States exported goods worth $148 million to Uganda, including vaccines, blood products, aircraft parts, and laboratory reagents. This figure marks a notable increase from 1995, when U.S. exports to Uganda were valued at US$37.5 million, growing at an average rate of 5.44% annually over 26 years. Conversely, Uganda’s exports to the U.S. in 2021 amounted to US$89.6 million, dominated by commodities like coffee, vanilla, and mushroom spawn. This reflects a steady growth pattern from 1995, when Uganda’s exports to the U.S. were valued at US$7.41 million, growing at an annual rate of 10.1% over the same 26-year period.
In essence, while both China and the United States have seen their trade relations with Uganda flourish, the growth rates and trade compositions vary, reflecting the evolving economic ties between these countries. China, being Uganda’s top trading partner, needs to do more to close the huge trade imbalance.
This analysis was prepared by Joel Odota, one of the founding members of this network, for the China-Uganda Research Network, based on trade data from the Observatory of Economic Complexity (OEC).
