THE INFORMAL CROSS BORDER TRADE SURVEY REPORT 2008

July 2009 FOREWORD

The Uganda Bureau of Statistics (UBOS) and the Bank of Uganda (BOU) jointly carry out regular Informal Cross Border Trade (ICBT) surveys to generate information on informal external trade transactions. The information which the ICBT survey provides compliments data from Customs and Excise Department of the Uganda Revenue Authority and the data is used for monitoring the developments in the external trade sector, as well as for guiding trade policy formulation and planning. In addition, the survey findings have improved on macroeconomic statistics estimates and indicators that were previously understated. The estimates have also helped partly to explain the inflationary pressures on commodity prices occasioned by huge outflows of both manufactured and agricultural commodities to neighbouring countries.

In addition, the two institutions have also set up the Domestic Resource Cost (DRC) project and the Index of Agricultural Production (IAP) project. The DRC project will measure competitiveness of the country’s tradables and also the comparative advantage in the production and marketing of our commodities. The IAP project will provide an indicator of production trends of the country’s agricultural sector. These two initiatives will enhance policy formulation in promoting Uganda’s effective participation in regional and international trade through the export sector in a profitable and competitive way for economic growth and absolute poverty reduction.

It is hoped that this statistical information will continue to inform the country’s development policies and decision making processes particularly in areas of regional integration, trade negotiations and infrastructural investment. Indeed, the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) Partner States should find this statistical information, including data collection methodologies, helpful for monitoring informal cross border trade activities.

The management of UBOS and BOU wish to express sincere gratitude to the Integrated Framework (IF) through Trade Capacity Enhancement (TRACE) Project of the Ministry of Tourism Trade and Industry under the multi-donor funding for the partial financial support to the survey. Lastly but not least, we thank all the stakeholders and the ICBT technical team for their continued dedication while executing survey activities.

Emmanuel Tumusiime-Mutebile J.B Male-Mukasa

GOVERNOR EXECUTIVE DIRECTOR Bank of Uganda Uganda Bureau of Statistics

i Table of Contents

FOREWORD ...... i List of Tables and Figures ...... iii DEFINITIONS ...... iv ACRONYMS ...... v EXECUTIVE SUMMARY ...... vi CHAPTER 1: INTRODUCTION ...... 1 1.0 Recent Economic Developments on the World Scene ...... 1 1.0.1 Effect of Globalization and Oil Prices on Trade ...... 1 1.0.2 ICBT Regional Perspective ...... 2 1.0.3 The National Trade Environment ...... 3 1.0.4 Institutional and Funding Arrangement ...... 3 1.1 Survey Objectives ...... 3 1.2 Scope and Coverage ...... 4 1.3 Survey Organization ...... 5 1.4 Data Processing and Analysis ...... 5 1.5 Data Revision and Integration...... 5 CHAPTER 2: METHODOLOGY ...... 6 2.0 Introduction ...... 6 2.1 Selection of Customs Stations for Monitoring ...... 6 2.2 Selection of Weeks for Monitoring ...... 6 2.3 Direct Observation Technique ...... 7 2.5 Data Limitation ...... 7 CHAPTER 3: FINDINGS AND ANALYSIS OF RESULTS...... 9 3.0 Introduction ...... 9 3.1 Informal Trade Flows during 2005-2008 ...... 9 3.2 Direction of Trade ...... 10 3.3 A Comparison of Formal and Informal Trade Flows, 2005 to 2008 ...... 12 3.4 Uganda’s Informal Trade with East African Community ...... 16 3.4.1 Trade with Kenya in Major Agricultural and Industrial Products ...... 17 3.4.2 Trade with Tanzania in Major Agricultural and Industrial Products ...... 18 3.4.3 Trade with Rwanda in Major Agricultural and Industrial Products ...... 18 3.5 Overall Main Informal Exports in 2008 ...... 19 3.6 Overall Main Informal Imports in 2008 ...... 21 3.7 Trade Flows by Border Station ...... 23 3.8 Modes of Transport ...... 24 CHAPTER 4: ICBT IMPLICATIONS, CONCLUSIONS AND RECOMMENDATIONS ...... 27 4.0 Summary of Findings ...... 27 4.1 Main Findings ...... 27 4.2 Implications ...... 28 4.2.1 Price competitiveness of Informal goods ...... 28 4.2.2 Domestic Industrial Competition ...... 28 4.3 Conclusion and Recommendations ...... 28 4.4 Challenges ...... 29 REFERENCES...... 46

ii List of Tables and Figures

Table 1: 2005 – 2008 Informal Trade Flows US$ ‘000 ...... 9 Table 2: 2008 Informal Exports and Imports by Country and Trade Balances (US$ ’000) ...... 10 Figure1: A comparison of 2006, 2007 and 2008 Informal Exports by Destination (US$ million) ...... 12 Table 3: Formal and Informal trade flows (US$ ’000) from 2005 to 2007 ...... 12 Table 4: 2008 Estimates of Informal Trade, by Product Category with Neighbouring Countries (US$ '000) ...... 13 Table 5: 2008 Estimates of Informal Trade, by Product Category and Percentage Share ...... 15 Table 6: 2008 Informal Exports, Imports and Trade Balance per Product Category ...... 16 Table 7: 2008 Informal Exports, Imports and Trade Balances for EAC Region (US$ ’000) ...... 17 Table 8: Overall Main Informal Exports of Industrial, Agricultural and Other Products (in Shs and US$) in 2008 ...... 20 Table 9: Overall Informal Imports of Industrial, agricultural and other products (in Shs and US$) in 2008 ...... 22 Table 10: 2008 Informal Exports and Imports by Border Station, Value and Percentage Share ...... 23 Table 11: 2007 Modes of transport by Value and Percentage Share of Exports and Imports ...... 26 Table 12: 2008 ICBT Exports by Destination, Commodity Type and Value (US$ and Shs) ...... 30 Table 13: ICBT Imports by Origin, Commodity Type and Value (Shs & US$) ...... 31 Table 14: Exports by Customs Station, Commodity Type, Quantity and Value (Shs & US$) ...... 32 Table 15: Imports by Customs Station, Commodity Type, Quantity and Value (Shs & US$) ...... 36 Table 16: ICBT Exports by Commodity, Quantity and Value (UShs & US$) ...... 40 Table 17: ICBT Exports by Commodity, Quantity and Value (UShs & US$) ...... 40 Table 18: 2008 Major Informal Exports of Agricultural and Industrial Products to EAC ...... 41 Table 19: 2008 Major informal Imports of Agriculture and Industrial Products from EAC ...... 44

iii DEFINITIONS

Balance of Payments Statistics This is a statistical statement that systematically summarizes the economic transactions of an economy with the rest of the world for a given period of time.

Industrial Products Industrial products are all items that have been classified under the International Standard Industrial Classification (ISIC). The category includes processed agricultural commodities and manufactured goods.

Agricultural Products These are mainly unprocessed commodities of agricultural nature

Informal Cross-Border Trade Refers to trade transactions between residents and non- residents across the economic boundaries of two or more countries, and, are largely not recorded by customs authorities.

Other Products These are a category of goods that are not classified under the industrial or agricultural products and are mainly natural resources like sand and soil (murram), crude salt, stones and water under ICBT survey.

Re-exports These are imports that are exported without much value addition according to prevailing COMESA Rules of Origin. Domestically produced goods may include imported goods that undergo value addition to alter the product significantly as per required Rules of Origin (ROO). The ROO normally specify a certain percentage of value added to a product in order for a good/commodity to qualify as originating from an economic territory.

Smuggling Is an illegal undertaking, which involves bringing in or taking out goods illicitly/stealthily without paying lawful charges or duties to customs authorities.

Trade Balance Is the difference between foreign exchange earnings from exports and the expenditure on imported goods.

iv ACRONYMS

BOP Balance of Payments BOU Bank of Uganda COMESA Common Market for Eastern and Southern Africa DRC Democratic Republic of Congo EAC East African Community EPA Economic Partnership Agreement EU European Union GDP Gross Domestic Product HS Harmonized Commodity Coding and Description System ICBT Informal Cross Border Trade IF Integrated Framework IMF International Monetary Fund ISIC International Standard for Industrial Classification ITSC International Trade Statistics Committee MFPED Ministry of Finance Planning and Economic Development MTTI Ministry of Trade, Tourism and Industry NES National E xport Strategy NTP National Trade Policy SADC Southern Africa Development Community SITC Standard International Trade Classification STR Simplified Trade Regime TEDD Trade and External Debt Department UBOS Uganda Bureau of Statistics URA Uganda Revenue Authority USAID United States Agency for International Development VAT Value Added Tax WTO World Trade Organization

v EXECUTIVE SUMMARY

This report is based on the estimates of Informal Cross Border Trade survey that was carried out in all the months of 2008 with the exception of June when monitoring was not conducted. The monitoring covered twenty border posts and three Bus terminals handling goods and people destined to South Sudan and Rwanda. The survey objectives was to gather information on the nature of unrecorded commodities transacted, their quantities and values, different modes of transport used for conveyance and the direction of trade.

In 2008, Uganda informally exported goods worth US$1,348.9 million and imported goods estimated at US$78.1 million, resulting in a trade surplus of US$1,270.7 million in informal external trade. Compared to this, the officially recorded exports and imports were valued at US$1,724.3 million and US$4,525.9 million in 2008, resulting in a trade deficit of US$2,801.6 million in formal trade. It is important to note, however, that the estimated informal exports earnings in 2008 are approximately equal to the officially recorded exports in 2007 signifying the growing importance of intra-Africa trade. When trade data from both transactions (formal and informal trade) are combined, Uganda’s overall merchandise exports earnings amounted to US$3,073.2 million in 2008 compared to US$2,113.2 million in 2007. This represents an increase in earnings of US$960 million. However, the overall merchandise trade deficit in 2008 is estimated at US$1,530.8 million compared to US$1,439.4 million registered in 2007. The increase in trade deficit is attributed to a higher increase in the country’s import bill than that of exports earnings.

All the five neighboring countries continue to be actively involved in informal cross border trade in all product categories. The leading informal exports are industrial products which earned US$1,103.4 million in 2008. These were followed by agricultural commodities with earning estimated at US$242.2 million in the same year. This suggests a substantial increase of exports of the two product categories from the previous year. For example, the informal exports earnings from industrial products were US$597.4 million whereas agricultural commodities earned US$173.4 million in 2007. The main agricultural commodity that was exported informally in 2008 was fish valued at US$69.6 million. On the other hand, the major imported industrial product was in clothes category (new and second hand clothes) whose imports bill was estimated at US$6.9 million.

The summary of the informal trade flows with Uganda’s neighbours are given below.

vi Sudan

Informal exports to Sudan increased significantly from US$456.4 million in 2007 to US$929.9 million in 2008. The commodities exported were mainly industrial products whose earnings were estimated at US$816.1 million, while agricultural products were valued at US$111.5 million. This compares with an estimated value of US$382.5 million and US$72.9 for industrial and agricultural recorded in 2007 respectively. The main Industrial products exported were clothes, shoes, mattresses, soft drinks, and cement. For imports, agricultural products were mainly beans, maize, millet and sorghum. The leading informal imports from Sudan were Skins and hides and beans which accounted for US$1.7 million and US$0.2 million respectively. Oraba remained the busiest border post for exports in 2007 as well as 2008.

Kenya

During 2008, the informal exports to Kenya are estimated at US$107.9 million, of which agricultural commodities accounted for US$76.5 million. This compares with an estimated exports value of US$96.9 million in 2006 and US$ 86.0 million in 2007. On the other hand, Uganda’s imports from Kenya were estimated at US$40.6 million, of which industrial products were valued at US$34.4 million. Overall, Uganda recorded informal trade surplus of US$67.3 million in 2008 compared to US$58.9 million in 2007. The main agricultural and industrial products exported to Kenya were beans and shoes (new and second hand shoes) whose earnings were valued at US$20.0 million and US$17.3 million respectively. In 2008, 52.0 percent of Uganda’s informal imports originated from Kenya compared to 47.2 percent recorded in 2007 and 80 percent in 2006. Busia was the busiest border station for informal imports throughout the period under review.

Democratic Republic of Congo

Uganda’s informal export trade with the Democratic Republic of Congo (DRC) increased from US$156.5 million in 2007 to US$198.5 million in 2008. The total informal trade (imports and exports) with DRC was estimated at US$219.5 million with a trade surplus of US$177.4 million in 2008. The informal exports to DRC were dominated by industrial products valued at US$153.9 million, whereas the agricultural products earned an estimated US$44.1 million. Imports from DRC were dominated by agricultural commodities, which accounted for US$13.6 million followed by the industrial products estimated at US$7.4 million. This implies that Uganda had comparative advantage in exporting industrial and agricultural products to DRC. It is important to note that the flow of agricultural goods was in both directions emphasizing the economic interdependence of the two countries in terms of food security. Overall, DRC was the second informal export destination for industrial products in the region in 2007 and 2008. The busiest border posts along the DRC frontier were Mpondwe in Kasese District and Odramachaku in Arua District. Fish was the main agricultural commodity exported to DRC whose earnings were estimated at US$36.3 million.

vii Tanzania

Uganda’s informal export trade with Tanzania increased substantially from US$21.5 million in 2006 to US$38.5 million in 2007 and then US$57.4 million in 2008. The informal imports doubled from US$2.9 million in 2007 to US$5.9 million in 2008. The leading agricultural exports to Tanzania were beans and maize whose values were estimated at US$2.1 million and US$0.4 million respectively. Under industrial products category, the main exported commodity to Tanzania were shoes with foreign exchange earnings estimated at US$10.2 million and clothes (new and used) estimated at US$8.7million. Human medicine was another significant export product with an estimated value of US$6.4 million of foreign exchange earnings.

The main informally imported agricultural commodity from Tanzania was unprocessed coffee with the import bill estimated at US$1.6 million. The other agricultural products that were imported included beans, rice and maize grain estimated at US$0.7 million, US$0.6 million) and US$0.3 million respectively. The recent inflows of unprocessed coffee from Tanzania and other neighbouring countries could be attributed to existing market conditions for the commodity under the liberalized trade environment in Uganda.

Rwanda

The informal exports to Rwanda increased from US$25.0 million in 2006 to US$39.1 million in 2007 and then US$55.2 million in 2008. The 2008 ICBT survey results reveal that industrial products dominated informal export commodities to Rwanda with estimated foreign exchange earnings of US$50.0 million compared to agricultural products whose earnings are estimated at US$7.0 million. The main industrial products exported to Rwanda consisted of clothes (new and used), shoes (new and used) vehicle parts and maize flour whose earnings were estimated at US$14.4 million, US$8.4 million and US$1.3 million and US$1.3 million respectively. Maize and bananas were the leading agricultural export whose earnings were estimated at US$1.6 million and US$0.8 million respectively. On the other hand, Uganda’s major agricultural imports from Rwanda were beans, peas and sorghum, with a combined import bill of US$0.5 million.

Uganda’s overall export earnings continued to grow during the year ending December 2008. The demand for the country’s goods remains strong within the region. This appears to mitigate the effect of falling international demand for Uganda’s exports particularly from the developed countries. The survey findings reveal that a substantial proportion of the informal trade exports involve industrial products and agricultural commodities. Overall, Uganda has got a comparative advantage in exports of agricultural commodities particularly to Kenya. However, Uganda also imported agricultural commodities (in small quantities, though) from her neighbors especially from Democratic Republic of Congo. This has implications on national and regional food security. The export earnings from industrial products continue to be more than earnings from agricultural commodities. A good number of industrial exports could be re-exports. However, Uganda should take advantage of high demand in the region

viii by addressing the supply constraints. Public investment in road infrastructure as well as agro-processing and other value addition initiatives would boost the country’s export earnings. Particular emphasis should be placed on developing roads leading to Southern Sudan and DR Congo to stimulate domestic production and promote trade to these countries. Indeed, the Domestic Resource Cost and the Index of Agricultural Production projects will go a long way in helping policy makers address the supply constraints in farm produce and value addition.

The policy recommendation is that value addition pursued under the National Export Strategy (NES) should be implemented expeditiously to improve on the competitiveness of traded commodities under informal and formal trade arrangements. Traders involved in informal trade activities should be supported by institutions responsible for standards and quality control to help improve on the products exported. Such services would make their products competitive in both regional and global markets where competition is stiff. Traders should also be encouraged to form commodity cooperatives to bargain for favourable prices.

The foreign exchange earnings accruing from informal trade show the significant contribution of informal trade to economic development and poverty reduction among the border communities. The government should partner with the private sector to improve on the conditions of informal trading environment so as to maximally harness the proceeds of informal trade. Moreover, the relative political stability in South Sudan and DRC is an advantage Uganda should continue to exploit for stronger and sustained economic growth.

Last but not least, the current monitoring of ICBT activities should be strengthened to become a permanent feature of the collaborating institutions to capture the ever-growing informal trade transactions.

ix CHAPTER 1: INTRODUCTION

1.0 Recent Economic Developments on the World Scene

The 21st century began with a great deal of optimism as most less developed countries started realising considerable economic growth and absolute poverty reduction. The desire to attain Millennium Development Goals (MDGs) by 2015 encouraged a number of these countries including Uganda to make policies that focused on economic prosperity and improvement of people’s welfare. Despite the significant progress registered, the recent global financial crisis might wipe out the gains and lead to reversal of the absolute poverty declines in less developed countries.

The economic recess in large economies such as the USA, Europe and Japan are likely to have a contagion effect on less developed countries through reduced international trade, international development assistance (IDA) and workers remittances. In particular, Uganda’s exports to and imports from developed countries could be adversely affected. This would not only lower export earnings but also further reduce the ability to import capital and intermediate inputs needed by domestic industries. In addition, there might be a fall in foreign direct investment and foreign private capital which would put pressure on the domestic money market and exchange rate movements.

Thus, the longitudinal statistical data generated from these surveys should be used to investigate the impact of the global financial crisis on the Uganda’s economy. Such an investigation would for example be helpful in explaining the extent to which the external sector of the economy is affected by the crisis and also how it could have an impact on absolute poverty.

1.0.1 Effect of Globalization and Oil Prices on Trade

Uganda like many African countries is facing a lot of challenges of integrating in the global economy. Globalization is driven by information technology and free flow of capital around the world. Uganda is disadvantaged due to low levels of technological advancement, investments and capital accumulation. The low domestic savings ratio (the lowest in EAC) hinders rapid growth of domestic investment and the expansion of the export sector. Moreover, the multilateral trade negotiations undertaken under WTO framework isolate poor countries from benefiting from global trade deals. This situation as seen by the developing countries is unfavorable and has resulted into the creation of a new trade bloc of developed and industrialized nations (the G20). Although the G20 presumes to negotiate on behalf of the entire developing world, many of the poorest nations continue to have little influence over the emerging WTO proposals which presage the fact that this Round agreement will not certainly make the developed countries open their markets to goods from the world's poorest nations.

1 During 2008 fuel prices rose to unprecedented levels due to a general rise in crude oil prices and post Kenya election violence which affected both the production and export sectors. Petroleum products for Uganda are imported mainly from the Middle East/Arab Gulf, transported by sea to Mombasa and transited through Kenya to Uganda by a combination of pipeline, railway and road trucks. There were recent negative developments on this route which led to the scarcity of the oil supplies and pushed up its pump prices. Oil prices to some extend moderate global prices and economic growth of most countries since its spillover effect is felt in most sectors of the economy.

The current government effort to begin production and refining of oil in the Albertine region could ease the oil import bill and spur growth in the production sector. The proceeds would also be used for improvement of the economic infrastructure and finance government expenditure to reduce poverty.

1.0.2 ICBT Regional Perspective

Uganda and her neighbours are important trading partners whose trade links have been constrained by political and economic factors. Trade among regional states could be traced way back to the colonial days where trade was the uniting factor among the border residents. The communities spread along the territorial boundaries share a lot in common both culturally and socially. They speak the same or similar languages, inter-marry and own land on either side of the borders. This alone provides an incentive to these communities to engage in informal trade to exploit available opportunities on either sides of the border.

The export of raw materials continues to undermine the competitiveness of Uganda’s products in regional markets in terms of prices and quality. Traders under ICBT do not observe international regulations and standards which complicate goods access to regional and international markets. Moreover, traders are faced with insufficient capital to ensure consistent supply chain of merchandise throughout the year. During bumper harvest, traders involved in cross border trade face serious storage problems of goods which end up compromising their quality and market prices. Besides, ICBT traders lack sufficient market information which could be bridged through national trade institutions to enable traders benefit from existing market opportunities within the region. These shortcomings require regional concerted efforts to improve on the informal trading environment.

2 1.0.3 The National Trade Environment

The government of Uganda liberalized the current and capital accounts as well as trade and foreign exchange transactions. Through this trade liberalization, cross border trade activities have thrived attracting both formal and informal traders to participate in international trade.

The National Export Strategy (NES) targets specific sectors under formal trade sector for product improvement and marketing with little emphasis on informal trade which has grown to significant levels. Traders require assistance in product development, timely market information which the strategy is yet to address. The National Trade Policy and the NES if well implemented could harness the proceeds of informal trade to contribute to poverty reduction.

The issue of value addition is critical for Uganda’s products to become competitive and fetch high premium in the regional markets. Investment into agro-processing of agricultural commodities could guarantee price stability of these products and international market accessibility. The Sanitary and Phyto-Sanitary (SPS) requirements including observing international standards need to be popularized among the informal traders to forestall future hindrances to regional market access. To this end, the Domestic Resource Cost project will go a long way in shedding more light on how the country’s tradables are competitive. In addition, the Index of Agricultural Production project will compliment other initiatives to provide robust indicators of agricultural production trends.

1.0.4 Institutional and Funding Arrangement

The Bank of Uganda (BOU) and Uganda Bureau of Statistics (UBOS) have continued to provide technical and financial support to the informal trade survey since 2003. Uganda Revenue Authority (URA) was an active participant until late 2005 when it became constrained by human resource to participate in the survey. The BOU has made a provision for ICBT funding from her annual budgetary allocation in Trade and External Debt Department (TEDD). The UBOS funds were provided by the Multi-agency Integrated Framework for Trade through TRACE Project of the Ministry of Trade, Tourism and Industry (MTTI). The other stakeholders who enabled smooth running of the survey include the Immigration Department, the Uganda Police, the Business Community and the Local Leaders at various border posts.

1.1 Survey Objectives

The broad objective of ICBT Survey was to establish the magnitude of unrecorded/informal trade flows between Uganda and her neighbours. However, specific objective were as follows;

• To determine the nature and composition of commodities transacted under informal trade

3 • To establish the direction of trade for informally traded goods (i.e. country of destination/origin); • To estimate flows in terms of values and quantities; • To provide a comparative analysis of recorded and unrecorded trade including net trade balances; • To generate monthly and annual ICBT estimates for Balance of Payments and National Accounts Statistics compilation and; • To establish the position of Uganda in terms of comparative and competitive advantage under the informal trading arrangement.

1.2 Scope and Coverage

The ICBT survey initially covered fourteen selected border posts that were known to have high concentration of informal trade transactions. The other border posts were left out due to financial constraints, poor communication (i.e. transport, telecommunications), insecurity and low trade volumes. However, after the signing of the Comprehensive Peace Agreement (CPA) between the North and Southern Sudan, political stability returned to Southern Sudan and DRC, where new crossing points started experiencing unprecedented flows necessitating further border expansion for ICBT monitoring.

During the Financial Year 2007/08, the ICBT Technical Team considered six new border posts and three bus terminals under ICBT border expansion program. This was aimed at widening the scope and coverage of informal trade activities that kept soaring as security improved in the neighboring countries.

Twenty border stations were selected for monitoring. These are Suam River, Lwakhakha, Sono, Malaba and Busia along Uganda/Kenya border; Mutukula and Kikagati along Uganda/Tanzania border; and Mirama Hills, Cyanika and Katuna along Uganda/Rwanda border. Along Uganda/DRC border, the stations that were monitored are Bunagana, Ishasha River, Mpondwe, Vurra, Odramachaku, Ntoroko, Goli and Paidha. For the Uganda/Sudan border, the stations monitored were Nimule/Bibia and Oraba. In addition to these, three bus terminals considered were; Arua/Juba, Kampala/Kigali, Kampala/Juba. Transactions through bus terminals are included in their respective borders of exit or entry.

4 1.3 Survey Organization

The UBOS and BOU senior staff carry out regular monthly coordination and supervision of ICBT fieldwork activities to minimise none sampling errors and ensure compliance to best practices. At every border station, at least two enumerators are engaged in the collection of data during the monitoring weeks. The team of enumerators is composed of persons who have been rigorously trained and are have adequate knowledge of the local languages at the given border stations. Through training, the enumerators acquired requisite competencies in metric system, quantity estimation methods, and tactical extraction of information from traders to achieve intended survey objectives. Enumerators also work hand in hand with the Immigration and Revenue Officials. The business community including those dealing in informal trade at border stations assists in identifying goods whenever required.

1.4 Data Processing and Analysis

The ICBT data processing is jointly done by the collaborating institutions after submission of field returns. The information is captured on monthly basis at UBOS Head office. After data entry, the officials from both institutions embark on data cleaning, coding and validation checks to ensure consistency and accuracy of the collected data. During the coding process, the data is transformed into the Harmonized Commodity Coding and Description System (HS) and Standard International Trade Classification (SITC) Nomenclature.

The ICBT data tabulation and analysis follows a predetermined tabulation scheme approved by the technical team in line with intended survey objectives.

1.5 Data Revision and Integration

The ICBT findings have been fully incorporated into the Balance of Payment Statistics current account for the years 2002 to 2007. Further revisions are expected in merchandise trade figures after completion of commodity coding using internationally recommended HS and SITC nomenclatures and isolation of re-exports.

5 CHAPTER 2: METHODOLOGY

2.0 Introduction

The data collection techniques took into account the characteristics and prevailing habits of unrecorded/informal trade practitioners at the borders. These techniques were deemed most appropriate for the circumstances in Eastern Africa as experimented earlier in the survey carried out by Prof. Ackello-Ogutu in 1996, and the subsequent ICBT surveys conducted by UBOS, BOU and URA.

2.1 Selection of Customs Stations for Monitoring

The border posts monitored under ICBT survey were purposely selected based on practical considerations of availability of supporting government institutions (like Immigration, Revenue Offices and Police Stations), road accessibility, security and the volume of unrecorded trade involved. The customs stations that are known to have informal trade transactions and are strategically positioned at the frontier between Uganda and her neighbors comprised the entire population. This implies that inland ports were not considered for monitoring. At present, there are many customs stations that are officially gazetted with most of them having no evidence of ICBT activities taking place within their vicinity. The sampling frame therefore consisted of a list of all customs stations (twenty seven) in the population domain selected using the above criteria. This was made possible by prior assessment visits mounted by the technical team.

A total of twenty customs posts were then purposively selected for monitoring in order to generate estimates for unrecorded trade flows. In 2007/2008 FY, the border expansion program raised the number of monitored stations from the previous fourteen to twenty to ensure coverage of about 90 percent. The border expansion program covered six border posts and three bus terminals where informally traded merchandise is loaded and offloaded. The purposive selection of the border posts ensured monitoring of significant border posts to minimize resource wastage.

2.2 Selection of Weeks for Monitoring

Due to resource constraints, it was not possible to monitor ICBT activities for a full month. The next stage therefore required specification of two weeks randomly selected from each month for monitoring. The method devised was to divide the month into four weeks, whereby two weeks in a month were monitored and the flows for the remaining two weeks estimated. Ideally, the selection of the weeks to be monitored was supposed to be random to avoid bias. However, due to financial constraints again, it was only possible to select the first week randomly and the subsequent week would follow automatically. This was done to minimize the double costs involved in moving the survey team twice to the field if the weeks were not following each other. For instance, if the month of May was monitored say the first and second weeks, it is denoted as 5.1 and 5.2 respectively.

6 2.3 Direct Observation Technique

The direct observation method of data collection was the most cost-effective way of gathering data under border conditions, which are far from ideal. Under this technique, enumerators were positioned strategically at border posts to record all merchandise entering or leaving the country by observation in accordance to the General Trade System (GTS). In cases where the enumerators would not identify the merchandise being transacted, the customs and immigration officials were involved in identifying the goods in question. All traded goods that were not recorded or officially cleared by customs authorities with documentary evidence were recorded in the counter books at the point of crossing the stations and later transferred in aggregated form into the “Summary Form A”. All transits goods were identified and excluded accordingly at the point of entry or exit.

2.4 Up-rating of Survey Results

This was necessary in order to generate monthly estimates from two weeks data for each month monitored.

The up rating of survey results was based on the following assumptions:

(a) The supply and demand for industrial and other products from either side of the border were fairly constant throughout the months of monitoring.

(b) The supply and demand of agricultural products fluctuate depending on the season, whether planting or harvesting season and the day of the week whether a normal day or market day. The average value of flows (imports/exports) for a day of the week, say Tuesday is multiplied by the number of times Tuesday occurs in a month. The procedure is repeated for all the days of the week and a sum of the values estimated to get the monthly estimates. The maximum number a day say Tuesday occurs in a month is 5 times while the least is 4 times.

(c) Trade transactions through other crossing points in the neighborhood of the monitored border stations were estimated individually based on qualitative monthly reports that were compiled by the supervisors after every monitoring month. Therefore, the reported percentage of (a) and (b) yields the estimated trade that crossed via the neighborhood of each monitored border station.

For further details about the up rating, linear interpolation and extrapolation models, see previous ICBT reports (2003, 2005, 2006 and 2007).

2.5 Data Limitation

The ICBT survey had some of the following limitations:

7 (i) The survey did not cover all the border stations in the country. Some of the border stations that were not covered may be experiencing significant amount of informal cross border trade flows; (ii) Trade occurring at night and beyond stipulated time of monitoring 7.00 am to 6 pm was not covered; (iii) The porous nature of the Ugandan borders and failure to monitor all cross border sites led to underestimation of the volumes of informal trade flows; (iv) The survey took utmost two weeks of border monitoring instead of four weeks in a month, thus failing to capture the transactions for the entire months in which border monitoring took place; (v) The Direct Observation technique did not accurately estimate the quantities of some traded items especially where assorted goods were involved in one package. Other estimation problems arose as a result of items being transported in packages not transparent, and those in bulk like sugar canes, fruits etc. (vi) Assignment of values, quantities and units of measure to some unique commodities was not accurately done because of the nature of the goods traded at respective border stations.

Limitations (i) to (iv) rendered the survey procedures unable to cover 100 percent of the trade in all the monitored sites.

The following measures were taken to address limitations (iv), (v) and to a significant extent (vi) stated above: a) Data verification, which included validation, consistency checks and coding in line with international merchandise trade statistics recommendations. b) Data up-rating

Limitation (ii) has not been addressed because of failure to find conclusive technical solution at the moment. Limitation (i) was partially tackled through ICBT border expansion program implemented during 2007/08 financial year.

8 CHAPTER 3: FINDINGS AND ANALYSIS OF RESULTS

3.0 Introduction

This chapter presents findings and analysis of results in line with the survey objectives. The indicators derived from the survey data include levels of inflows (informal imports) and outflows (informal exports), trade balance, direction of trade, comparative values of recorded and unrecorded trade as well as the volume and value of imported and exported commodities. The results presented are estimates based on eleven months of border monitoring in 2008 excluding June which was estimated. In each month, two weeks were monitored continuously while the remaining two were estimated using the uprating method.

3.1 Informal Trade Flows during 2005-2008

Table 1 below shows the informal trade estimates for the years 2005 to 2008. The figures are reported in thousands of United States dollar.

Table 1: 2005 - 2008 Informal Trade Flows (US$ ‘000)

Trade Flow Year

2005 2006 2007 2008 Exports 200,307.0 231,741.0 776,508.9 1,348,855.4 Imports 65,872.0 80,633.0 57,238.6 78,113.9 Trade Balance 134,435.0 151,108.0 719,270.3 1,270,741.5 % Change in Exports 15.7 235.1 73.7 % Change in Imports 22.4 (29.0) 36.5

Uganda’s informal export earnings in 2008 were estimated at US$1.3 billion compared US$776.5 million in 2007 and US$231.7 million in 2006. During 2008, informal exports increased substantially by 73.7 percent owing to increased cross border trade to Southern Sudan. On the other hand, informal imports were estimated at US$78.1 million in 2008 compared to US$57.2 million in 2007 and US$80.6 million in 2006. Thus, informal imports increased by 36.5 percent or US$20.8 million in 2008. The increase in informal imports was on account of increased imports from Kenya and Rwanda. The informal imports are still low compared to exports. It should be understood that because exports do not attract any customs duty (with the exception for hides and skins); traders find it easy to export to neighbouring countries.

Overall, Uganda recorded a trade surplus of US$1.27 billion in 2008 compared to US$719.3 million in 2007 and US$151.1 Million in 2006. These figures reveal that there is a high demand for Ugandan commodities in East African and the Great Lakes regions.

9 3.2 Direction of Trade

Table 2 below shows the estimates of informal external trade flows by direction of trade. In 2008, Sudan continued to be the main destination for Uganda’s informal exports by registering export receipts amounting to US$929.8 million compared to US$456.4 million recorded in 2007. The trade surplus on informal trade in goods was estimated at US$920.5 million in 2008 compared to a trade surplus of US$447.7 million in 2007.

Table 2: 2008 Informal Exports and Imports by Country and Trade Balances (US$ ’000)

Country Exports Imports Total Trade Trade Balance 2006 2007 2008 2006 2007 2008 2008 2008 DRC 80,453 156,534 198,455 11,288 18,242 21,077 219,532 177,378 Kenya 96,882 86,013 107,879 63,880 27,037 40,620 148,499 67,258 Rwanda 25,046 39,104 55,246 694 405 1,164 56,410 54,082 Sudan 7,842 456,373 929,905 517 8,669 9,371 939,276 920,533 Tanzania 21,518 38,486 57,371 4,255 2,886 5,881 63,252 51,490 Overall 231,741 776,509 1,348,855 80,633 57,239 78,114 1,426,969 1,270,742

During 2007, the expenditure on imports was estimated at US$8.7 million (15.1 percent of the total imports). The increase in trade with Sudan could be attributed to the relative political stability in both Northern Uganda and Southern Sudan, and, the recovery efforts being pursued by the Government of Southern Sudan that increased the demand for consumer and producer goods.

The Democratic Republic of Congo (DRC) maintained its second position with informal export earnings estimated at US$198.5 million while imports were valued at US$21.1 million. This compares with informal exports and imports estimated at US$156.5 million and 18.2 million in 2007 respectively. During 2008, the total informal trade was estimated at US$219.5 million with a trade surplus of US$177.4 million.

Kenya ranked third as the final destination of Uganda’s informal exports estimated at US$107.9 million with the imports bill worth US$40.6 million. In 2008, the total informal trade between Uganda and Kenya was estimated at US$148.5 million with a trade surplus of US$67.3 million.

Informal exports to Rwanda and Tanzania stood at US$55.2 million and US$57.4 million respectively. Overall, Uganda recorded a trade surplus with all her neighbours under informal trade. The above scenario of trade partner flows is similar to the previous year, although estimates derived from surveys conducted in 2006, and 2005 showed Kenya and DRC as the main export destinations of Uganda’s products under informal trade.

10 As shown in Figure 1 below, informal exports to Sudan doubled attaining the highest record value compared to other countries in the past two years. The increase in trade with Sudan could be attributed to the increased demand for mainly consumer and industrial goods to meet the ever increasing population of returnees. During the period under review, all neighboring countries registered a substantial increase in informal exports. The rise in exports to Kenya could be attributed to increase in demand for food items following agricultural failure due to drought and electoral violence that displaced most people in western Kenya. For instance, exports to Kenya increased from US$86.0million in 2007 to US$107.9 million in 2008, while informal exports to Sudan increased from US$456.4 million in 2007 to US$929.9 accounting for 68.9 percent of merchandise exports transacted under informal trade. The inclusion of Nimule/Bibia crossing point and the bus terminals (Arua/Juba and Kampala/Juba) improved the recording of Sudan’s trade flows considerably. Some of the goods informally exported to Sudan included beverages (beers, soda, and wines), iron sheets, construction materials, shoes, and clothes (both new and used).

In 2008, the total informal imports to Uganda amounted to US$78.1 million, of which, Kenya accounted for US$40.6 million (52 percent). Kenya remained the leading source of Uganda’s informal imports during the period under review although it’s imports reduced significantly in 2007 on account of the tax ban on polythene paper which constituted a big proportion of informal merchandise imports in the previous years.

During 2008, all neighbouring countries registered an increase in informal imports with DRC maintaining its second position. Informal imports from Tanzania more than doubled from US$2.8 in 2007 to US$5.9 million in 2008. The increase in trade with neighbouring countries could be attributed to relative political stability and the liberalized trade regime which has attracted goods like coffee into the Ugandan market. Imports from Sudan marginally increased from US$8.7 million in 2007 to US$9.4 million registered in 2008. Meanwhile, Tanzania and Rwanda maintained their ranking as fourth and fifth informal imports source respectively.

11 Figure 1: A comparison of 2006, 2007 and 2008 Informal Exports by Destination (US$ million)

1,000

900

800

700

600

500

400

300

200 Informal Exports value (million US$) (million value Exports Informal

100

- DRC Kenya Rwanda Sudan Tanzania Country of destination

2006 2007 2008

3.3 A Comparison of Formal and Informal Trade Flows, 2005 to 2008

Table 3 below shows the comparison of trade flows under informal arrangements. Again, the estimates are reported in thousands of United States dollars.

Table 3: Formal and Informal trade flows (US$ ’000) from 2005 to 2008

Trade Flow Year 2005 2006 2007 2008 Informal Exports 200,307 231,741 776,509 1,348,855 Formal/Official Exports 812,857 962,193 1,336,668 1,724,300 Total Exports 1,013,164 1,193,934 2,113,177 3,073,155 Informal Imports 65,872 80,633 57,239 78,114 Formal/Official Imports 2,054,137 2,557,308 3,495,391 4,525,859 Total Imports 2,120,009 2,637,941 3,552,630 4,603,973 Over all Trade balance -1,106,845 -1,444,007 -1,439,453 -1,530,818

Table 3 further shows that during 2008, Uganda’s informal merchandise exports amounted to US$1.3 billion compared to formal merchandise exports worth US$1.7 billion. This brings the overall combined (formal and informal) export earnings to US$3.1 billion in 2008 compared to US$2.1 billion in 2007 indicating an increase of 45.4 percent from both trading arrangements. The combined import bill for both informal and formal trade was estimated at US$3.6 billion and US$4.6 billion in 2007 and 2008 respectively. The overall merchandise trade deficit was estimated at US$1.5 billion in 2008 compared to a deficit of US$1.4 billion recorded in 2007.

12 The proportion of informal exports to overall/total merchandise trade from the two trading arrangements stood at 19.8 percent in 2005, 19.4 percent in 2006, and 36.7 percent in 2007 and peaked at 43.9 percent in 2008. On the other hand, the proportion of informal imports to formal imports was marginal at 3.0 percent in 2005 and 2006, and reduced to about 1.7 percent in both 2007 and 2008. This underscores the significance of informal export trade to overall merchandise trade whose share has continued to increase during the period under review.

The summary of findings in respect to the direction of trade by product category, exports and imports values and trade balance are given in Table 4 below.

Table 4: 2008 Estimates of Informal Trade, by Product Category with Neighbouring Countries (US$ '000)

Country Product Category Exports Imports Trade Balance DR Congo All Products 198,455.3 21,076.9 177,378.3 Agricultural 44,064.1 13,619.7 30,444.4 Industrial 153,903.6 7,409.7 146,493.8 Other 487.6 47.5 440.1 Kenya All Products 107,878.7 40,620.5 67,258.2 Agricultural 76,499.4 6,126.7 70,372.6 Industrial 31,340.2 34,442.8 (3,102.6) Other 39.1 51.0 (11.9) Rwanda All Products 55,245.9 1,164.2 54,081.6 Agricultural 6,993.5 990.9 6,002.5 Industrial 47,961.9 172.3 47,789.6 Other 290.5 1.0 289.5 Sudan All Products 929,904.6 9,371.1 920,533.4 Agricultural 111,493.2 2,792.0 108,701.2 Industrial 816,117.7 6,576.5 809,541.2 Other 2,293.7 2.6 2,291.0 Tanzania All Products 57,371.0 5,881.1 51,489.9 Agricultural 3,122.5 3,878.1 (755.7) Industrial 54,095.7 1,906.1 52,189.5 Other 152.9 96.8 56.0 Overall 1,348,855.4 78,113.9 1,270,741.5

The findings in Table 4 indicate that Uganda remained the net exporter of food items to the neighboring countries except for Tanzania which exported more agricultural commodities to Uganda. Uganda registered a considerable trade surplus on agricultural, industrial and other products with her neighbors in 2008. In the previous years, Uganda imported more industrial products than it exported to Kenya under informal trade. This trend was reversed in 2007 due to Uganda’s favourable fiscal policies which made its industrial products cheaper compared to Kenya’s. Uganda’s trade deficit on industrial products narrowed in 2008

13 significantly with Kenya and was estimated at US$3.1 million. Some of the informal exports to Kenya for example shoes and clothes are re-exports.

The results in Table 4 further show that the industrial products informally exported to Sudan more than doubled from the 2007 level. Exports earnings were estimated at US$816.1 million in 2008 compared to US$382.5 million in 2007 and US$5.7 million in 2006. The increase in Industrial product exports to Sudan could be attributed to increased demand for consumer and capital goods as the country recovers from the effect of war. Conversely, informal imports from Sudan were estimated at US$9.4 million of which industrial products accounted for US$5.9 million only.

In addition, informal exports to DRC in 2008 were estimated at US$198.5 million compared to US$156.5m recorded in the previous year. Industrial products informally exported accounted for US$153.9 million compared to the value of US$124.3 million and US$58.0 million recorded in 2007 and 2006 respectively. During 2008, informal imports from DRC were estimated at US$21.1 million, of which, agricultural commodities accounted for US 13.6 million. Industrial products dominated the informal export products to Tanzania and Rwanda accounting for US$54.1 million and US$48.0 million respectively.

Under Agricultural products, Uganda recorded a trade surplus with her neighbors except Tanzania, with Sudan and Kenya being the biggest recipients during the period under review. In 2008, agricultural commodities worth US$ 111.5 million and US$76.5 million were informally exported to Sudan and Kenyan respectively. This was followed by DRC with an estimated value of US$44.0 million, then Rwanda valued at US$7.0 million and Tanzania with only US$3.1 million. These findings indicate that Uganda had both a comparative and a competitive advantage in export of agricultural and industrial products in the region. The flow of food items among regional states in both directions indicates the economic interdependence in terms of food security during scarcity. Uganda is also positioned strategically to exploit the market potential that the Eastern DRC and South Sudan offers given her industrial base.

The percentage share of products in terms of export earnings and expenditure on imports per partner country is shown in Table 5 .

14 Table 5: 2008 Estimates of Informal Trade (US$ 000’), by Product Category and Percentage Share

Country Product Category Exports % Share Imports % Share DR Congo All Products 198,455.3 14.7 21,076.9 27.0 Agricultural 44,064.1 3.3 13,619.7 17.4 Industrial 153,903.6 11.4 7,409.7 9.5 Other 487.6 0.0 47.5 0.1 Kenya All Products 107,878.7 8.0 40,620.5 52.0 Agricultural 76,499.4 5.7 6,126.7 7.8 Industrial 31,340.2 2.3 34,442.8 44.1 Other 39.1 0.0 51.0 0.1 Rwanda All Products 55,245.9 4.1 1,164.2 1.5 Agricultural 6,993.5 0.5 990.9 1.3 Industrial 47,961.9 3.6 172.3 0.2 Other 290.5 0.0 1.0 0.0 Sudan All Products 929,904.6 68.9 9,371.1 12.0 Agricultural 111,493.2 8.3 2,792.0 3.6 Industrial 816,117.7 60.5 6,576.5 8.4 Other 2,293.7 0.2 2.6 0.0 Tanzania All Products 57,371.0 4.3 5,881.1 7.5 Agricultural 3,122.5 0.2 3,878.1 5.0 Industrial 54,095.7 4.0 1,906.1 2.4 Other 152.9 0.0 96.8 0.1 Overall 1,348,855.4 100.0 78,113.9 100.0

During 2008, Sudan took the largest market share of informal exports estimated at 68.9 percent compared to 58.8 percent in the previous year. Of these, exports of industrial products accounted for 60.5 percent, agricultural products 8.3 percent and other products took only 0.2 percent. DRC came second with 14.7 percent of informal exports of which industrial products accounted for 11.4 percent, while informal merchandise imports from DRC accounted for 27.0 percent.

Kenya came third with the market share of 8.0 percent of informal exports while imports accounted for 52.0 percent in 2008. This compares with the market share of 11.1 percent and 47.2 percent for informal exports and imports respectively in 2007. Although Kenya was the leading source of Uganda’s imports, its share reduced significantly in 2008 on account of exchange rate fluctuations which made Kenyan goods expensive coupled with a ban on polythene bags which used to be the leading informal item imported. The share of informal imports from DRC decreased considerably from 31.9 percent in 2007 to 27.0 percent in 2008. Informal imports of agricultural products from DRC took the highest market share of 17.4 percent while industrial products accounted for 9.5 percent. It is important to note that most industrial products imports from DRC do not originate from there but are re-exports from other countries. On the other hand, the share of imports from Rwanda and Tanzania increased marginally in 2008 compared to 2007 performance.

15 Table 6 summarizes the performance of informal trade by product type and share contribution of exports and imports .

Table 6: Informal Exports, Imports and Trade Balance per Product Category (US$ 000’)

Product Category 2006 2007 2008 2008 Export % Share Exports Agricultural 112,835.4 173,360.2 242,172.6 18.0 Industrial 117,869.7 597,424.5 1,103,419.1 81.8 Other 1,036.0 5,724.2 3,263.7 0.2 Overall 231,741.1 776,508.9 1,348,855.4 100.0 Imports Agricultural 20,883.7 18,035.1 27,407.5 35.1 Industrial 59,679.7 38,719.0 50,507.5 64.7 Other 69.7 484.5 198.9 0.3 Overall 80,633.1 57,238.6 78, 113.9 100.0

During 2008, Uganda informally exported industrial products worth US$1.1 billion accounting for 81.8 percent compared to the estimated value of US$597.4 million recorded in the previous year. This was followed by agricultural products whose value was estimated at US$242.2 million representing 18.0 percent of total exports compared to US$173.4 million registered in 2007. Meanwhile, the other products accounted for only US$3.3 million (0.2 percent). Likewise, industrial products dominated the informal import sector accounting for US$50.5 million (64.7 percent) of the total imports bill, followed by agricultural products whose value was estimated at US$27.4 million accounting for only 35.1 percent. This compares with the agricultural and industrial products valued at US$173.3 million (22.3 percent) and US$597.4 million (76.9 percent) in 2007 respectively. Despite the decline in the exports share of agricultural products in 2008, the value increased from US$173.4 million in 2007 to US$242.2 million in 2008. The overall trade surplus recorded on export of industrial products stood at US$1.05 billion, agricultural products was estimated at US$214.7 million and US$3.1 million on other products. The findings further confirm that Uganda had a comparative advantage in export of both agricultural and industrial products under informal trade during 2008. The high demand for industrial products in Sudan and DRC continued to augment informal exports.

3.4 Uganda’s Informal Trade with East African Community

EAC region is working towards establishing a Common Market for the five countries as well as a Monetary Union by 2012. In this regard, the findings were disaggregated to analyze the trade flows for EAC countries separately. The region is comprised of five countries; Uganda, Kenya, Tanzania, Rwanda and Burundi. However, ICBT monitoring covers only Tanzania, Rwanda and Kenya.

16 From table 7 below, the informal exports to the three EAC countries in 2008 were estimated at US$220.5 million. This compares with an estimated value of US$163.6 million and US$143.2 million recorded in 2007 and 2006 respectively. The findings show that informal trade between Uganda and her neighbours has been growing steadily over the period under review. On the other hand, informal imports from these countries increased by 59.0 percent from US$30.0 million in 2007 to US$47.7 million in 2008. Overall, Uganda registered a trade surplus of US$172.8 million and total trade estimated at US$ 268.2 million in 2008. This compares with an estimated trade surplus of US$133.3 million and the total informal trade value of US$193.9 million in 2007. These findings underscore the significance of informal trade transactions among the EAC partner states which has kept on increasing over time.

Table 7: 2008 Informal Exports, Imports and Trade Balances for EAC Region (US$ ’000)

Country Exports Imports Total Trade Trade Balance Kenya 107,878.7 40,620.5 148,499.2 67,258.2 Rwanda 55,245.9 1,164.2 56,410.1 54,081.6 Tanzania 57,371.0 5,881.1 63,252.0 51,489.9 Overall 220,495.5 47,665.8 268,161.3 172,829.7

3.4.1 Trade with Kenya in Major Agricultural and Industrial Products

Uganda’s informal exports to Kenya were mainly agricultural commodities which accounted for US$76.5 million (70.9 percent), followed by industrial products estimated at US$31.4 million and other products valued at US$0.04 million. This compares with agricultural products valued at 56.2 million (65.4 percent) and industrial products estimated at 29.6 million in 2007. The main informal agricultural commodities were beans, maize, fish ground nuts, and bananas whose estimated value was US $19.8 million, US$13.1 million, US$10.1 million and US$9.6 in 2008 respectively.

The leading agricultural commodities informally imported from Kenya were maize, coffee (unprocessed), cattle, peas and rice with values estimated at US$1.1 million, US$1.0 million, US$0.4 million, US$0.4 million and US$0.3 million respectively in 2008. There was a general reduction on informal imports bill on these products compared to 2006. For instance, the value of rice was estimated at US$3.4 million in 2006, but drastically fell to US$0.3 million in 2008 due to reduction in its exports to avert food crisis in Kenya.

The agricultural commodities exported under informal trade to Kenya were mainly food stuffs highlighting the interstate dependence of regional states during food scarcity. The informal exports of manufactured goods to Kenya were Shoes (both second hand and new), boutiques/bitenges, clothes (new and used) and petroleum jelly whose foreign export earnings were estimated at US$17.3 million, US$4.7 million, US$1.4 million and US$0.9 million in 2008 respectively.

17 Clothes (new and used), polythene bags, cooking oil and salt were the main informally imported industrial product from Kenya with estimated import expenditure of US$5.3 million, US$4.6 million, US$3.4 million and 2.2 million respectively. It is important to note that the polythene bags imported informally has continued to reduced remarkably from US$25.6 million in 2006 to US$5.6 million in 2007 and currently at US$4.6 million in 2008. The significant reduction in the value of polythene bags could be attributed to the Government policy that limited the importation of polythene bags of less than 30 microns. Other commodities that featured highly among the main industrial imports were soap, cooking fat, and paraffin whose expenditure bill was estimated at US$1.1 million, US$0.9 million and US$0.9 million respectively.

3.4.2 Trade with Tanzania in Major Agricultural and Industrial Products

Uganda continued to record a favourable trade balance with Tanzania with informal exports to Tanzania rising from US$21.5 million in 2006 to US$38.5 million in 2007 and then US$57.4 million in 2008. Meanwhile, informal imports declined from US$4.3 million in 2006 to US$2.9 million in 2007 and more than doubled to US$5.9 million in 2008.

The main agricultural exports to Tanzania included beans, maize and ginger whose values were estimated at US$2.1 million, US$0.4 million and US$0.2 million respectively. Meanwhile, the main imported agricultural products from Tanzania were unprocessed coffee, beans, rice, and maize valued at US$1.6 million, US$0.5 million, US$0.2 million and US$0.1 million respectively.

The major industrial exports to Tanzania comprised of clothes (second hand and new), shoes (new/used), human medicine, and sugar estimated at US$10.2 million, US$8.7 million, US$6.4 million, and US$2.6 million respectively. The other industrial products exported were alcohol/spirits, boutiques/bitenge, sandals and maize flour. Meanwhile, the main industrial products informally imported were coffee (processed), cooking oil, ghee and maize flour estimated at US$0.5 million, US$0.4 million, US$0.2 million and US$0.1 million respectively (as in table 18 and 19).

3.4.3 Trade with Rwanda in Major Agricultural and Industrial Products

Uganda’s unrecorded/informal export trade with Rwanda continued to increase from US$25.0 million in 2006 to US$39.1 million in 2007 and then to US$55.2 million. The trend suggests that trade between Uganda and Rwanda is likely to increase to unprecedented levels following the entry of Rwanda into the EAC regional bloc and the improved bilateral relationship between the two countries. The main agricultural exports were maize grain, tobacco, bananas and sorghum estimated at US$1.6 million, US$1.1 million, US$0.8 million and US$0.5 million respectively. Uganda’s informal agricultural imports from Rwanda were Beans, Peas, sorghum, and chicken estimated at US$0.3 million, US$0.2 million and US$0.1 million respectively. On the other hand, the major industrial products exported to Rwanda were shoes and clothes (new and used) which accounted for US$14.4 million and US$8.4 million respectively as shown in table 18 and 19. 18 The overall informal import bill on industrial products from Rwanda was US$1.2 million in 2008 compared to an estimated value of US$0.4 million in 2007.

3.5 Overall Main Informal Exports in 2008

From Table 8 below, the five main informally exported agricultural commodities were fish, beans, maize, bananas and ground nuts whose values were estimated at US$69.6 million, US$30.9 million, US$22.3 million, 15.2 million and US$12.3 respectively. This compares with previous estimated value of US$53.3 million, US$18.7 million, US$17.6 million, US$11.3 million and US$7.8 million respectively. The findings indicate that the five main commodities recorded a substantial increase in value and volumes exported after the country recovered from the floods that devastated the northern part of Uganda.

The main five industrial products exported informally comprised of clothes, shoes, Alcohol/spirits, milk (processed), and beer which accounted for 24.2 percent of the total informal merchandise exports. Clothes (New and second hand) fetched the highest value of US$119.3 million taking a share of 8.8 percent, followed by shoes (new and used) with an estimated value of US$106.2 million (7.9 percent), alcohol 8.7 earned US$37.7 million (2.8 percent), whereas milk (processed) and beer accounted for US$35.0 million (2.6 percent) and US$28.6 million (2.1 percent) respectively. The other manufactured products that contributed significantly to the informal export earnings included radios, soda, wheat flour and blankets. It is important to note that some of these industrial products exported under informal trade are re-exports.

19 Table 8: Overall Main Informal Exports of Industrial, Agricultural and Other Products (in 000 Shs and US$ 000’) in 2008

Item Value (Shs) US$ % Share Agricultural Products Total 409,430,013 242,175 17.95 Fish 117,238,118 69,604 5.16 Beans 52,664,566 30,997 2.3 Maize Grains 37,364,342 22,296 1.65 Bananas 25,704,148 15,279 1.13 Ground Nuts 21,011,876 12,318 0.91 Onions 18,147,446 10,651 0.79 Eggs 16,225,687 9,594 0.71 Tomatoes 15,801,904 9,339 0.69 Chicken 10,964,249 6,496 0.48 Potatoes (Irish) 10,672,622 6,244 0.46 Millet Grains 10,007,711 5,935 0.44 Sorghum 7,539,145 4,454 0.33 Cattle 7,005,770 4,116 0.31 Cabbages 6,645,761 3,946 0.29 Rice 6,416,335 3,765 0.28 Industrial Products Total 1,881,232,562 1,103,418 81.8 Clothes (New & Used) 203,566,359 119,305 8.84 Shoes (New & Used) 181,254,236 106,184 7.87 Alcohol/Spirits 65,145,875 37,724 2.8 Milk (Processed) 60,189,661 34,970 2.59 Beer 48,782,490 28,628 2.12 Radios 46,392,535 27,396 2.03 Soda 40,040,016 23,448 1.74 Wheat Flour 39,783,476 23,528 1.74 Blankets 39,254,365 22,876 1.7 Mattresses 38,976,796 23,016 1.71 Biscuits 38,437,219 22,586 1.67 Human Medicine 37,811,254 22,090 1.64 Petroleum Jelly 35,478,855 20,712 1.54 Sweets 34,752,510 20,302 1.51 Bags 32,552,110 19,135 1.42 Juice 31,518,837 18,419 1.37 Maize Flour 30,957,481 18,319 1.36 Other Products T otal 5,539,603 3,262 0.24 Salt (Crude) 4,077,358 2,398 0.18 Mineral Ore 356,000 207 0.02 Water 346,599 208 0.02 Sand 316,380 190 0.01 Stones 150,135 89 0.01

20 3.6 Overall Main Informal Imports in 2008

From Table 9 below, clothes (new and second hand) were the main imported goods under industrial products category with an expenditure bill estimated at US$6.9 million. This was followed by polythene bags valued at US$4.6 million (5.9 percent), then cooking oil valued at US$4.0 million (5.1 percent), and salt worth US$2.2 million. The other commodities in this category with significant values were; shoes (new and second hand) estimated at US$1.8 million, washing soap (US$1.2 million), Boutique/Bitenge (US$1.2 million) and sauce pans worth US$1.1 million. The polythene bags (Kavera) whose import bill was estimated at US$25.9 million in 2006 reduced considerably to US$5.6 million in 2007 and then to US$4.6 million in 2008 due to the effect of polythene ban instituted by the government during 2007/08 financial year.

In 2008, the major agricultural commodities imported informally were; coffee (unprocessed), beans, bananas, fish and maize grains. The unprocessed coffee accounted for US$4.9 million (6.2 percent) followed by beans, bananas, fish, and maize grains estimated at US$3.9 million, US$2.7 million, US$2.3 million and US$2.0 million respectively. The unprocessed coffee which originates mainly from Kenya and Tanzania has found readily available market with competitive prices under the liberalized trade environment in Uganda. Although Uganda imported the above food stuffs, it remained a net exporter of these same items to her neighbours.

21 Table 9: Overall Informal Imports of Industrial, agricultural and other products (in 000 Shs and US$ 000’) in 2008

Item Value (Shs) US$ % Share Agricultural Products Total 46,112,885 27,408 35.10 Coffee (Unprocessed) 8,270,819 4,868 6.20 Beans 6,438,403 3,864 4.90 Bananas 4,640,040 2,742 3.50 Fish 3,787,028 2,253 2.90 Maize Grains 3,312,998 1,992 2.60 Hides & Skins 3,016,230 1,815 2.30 Ground Nuts 2,960,650 1,734 2.20 Rice 2,458,137 1,457 1.90 Onions 1,359,636 807 1.00 Peas 1,147,661 686 0.90 Cassava 1,023,350 612 0.80 Sorghum 999,637 601 0.80 Avocadoes 931,500 560 0.70 Potatoes (Irish) 798,713 480 0.60 Cattle 735,385 440 0.60 Industrial Products Total 85,304,412 50,507 64.70 Clothes (New & Used) 11,535,144 6,874 8.80 Polythene Bags 7,874,655 4,632 5.90 Cooking Oil 6,801,897 3,996 5.10 Salt 3,770,466 2,230 2.90 Shoes (New & Used) 2,964,499 1,763 2.30 Palm Oil 2,938,350 1,742 2.20 Soap (Washing) 2,127,880 1,211 1.50 Bitenges 2,008,338 1,189 1.50 Sauce Pans 1,832,763 1,105 1.40 Sugar 1,575,284 942 1.20 Cooking Fat 1,578,506 935 1.20 Flasks 1,541,386 912 1.20 Paraffin 1,500,273 887 1.10 Milk (Processed) 1,386,390 830 1.10 Diesel 1,308,188 773 1.00 Coffee (Processed) 1,285,321 769 1.00 Other Products Total 342,206 199 0.30 Stones 153,462 86 0.10 Fire Wood 94,671 57 0.10 Sand 59,646 35 0 Water 17,972 11 0 Salt (Crude) 12,167 7 0

22 3.7 Trade Flows by Border Station

This subsection discusses the informal exports and imports transactions for each border station in 2008. The survey covered twenty border stations including three bus terminals based in Kampala compared to the fourteen customs stations monitored in 2006 and 2005. The trade flows through bus terminals were credited to the respective exit border station. The results are reported in Table 10 below.

Table 10: 2008 Informal Exports and Imports by Border Station, Value (US$ 000’) and Percentage Share

Station Exports % Imports % Share Share Oraba 839,569.95 62.2 3,139.96 4 Mpondwe 130,526.38 9.7 7,407.76 9.5 Bibia/Nimule 90,334.64 6.7 6,231.18 8 Busia 82,221.73 6.1 27,801.05 35.6 Mutukula 56,118.62 4.2 3,971.63 5.1 Ntoroko 33,014.02 2.4 1,286.68 1.6 Katuna 32,003.97 2.4 653.16 0.8 Odramachaku 16,574.34 1.2 2,737.24 3.5 Mirama Hills 15,608.82 1.2 167.94 0.2 Malaba 15,316.91 1.1 5,722.80 7.3 Cyanika 7,633.07 0.6 343.15 0.4 Bunagana 6,012.16 0.4 2,546.31 3.3 Suam River 5,312.40 0.4 2,129.52 2.7 Ishasha River 4,360.57 0.3 441.73 0.6 Lwakhakha 4,089.47 0.3 1,779.67 2.3 Vvura 2,944.83 0.2 1,647.02 2.1 Paidha 2,837.99 0.2 4,321.11 5.5 Goli 2,184.98 0.2 689.09 0.9 Kikagati 1,252.35 0.1 1,909.44 2.4 Sono 938.20 0.1 3,187.46 4.1 Overall 1,348,855.39 100 78,113.89 100

Table 10 shows that Oraba customs station along the Uganda/Sudan border was the busiest station under informal cross border trade during 2007and 2008. The value of exports and imports through Oraba in 2008 stood at US$839.6 million (62.2 percent) and US$3.1 million (4.0 percent) compared to the estimated value of 403.2 million (51.9 percent) and US$1.1 million (2.0 percent) in 2007 respectively. The exported products through Oraba were mainly industrial products such as shoes, cement, milk (powder), motorcycle parts, radios, generators, clothes, maize flour, mats, chocolate, televisions, computers, juices, sugar, soap, rice and sauce pans.

Mpondwe border station along the Uganda/DRC border ranked second in 2008. Exports earnings at this station were US$130.5 million (9.7 percent) whereas the import bill was US$7.4 million (9.5 percent). This compares with an estimated exports earnings estimated at US$105.0 million (13.5 percent) and imports of US$5.4 million (9.5 percent) in 2007.

23 Busia border station, which took the largest market share of exports before 2007, came third with exports estimated at US$82.2 million (6.1 percent) in 2008. For informal imports, however, Busia has continued being the largest entry point throughout the period under review. Informal imports through Busia are estimated at US$27.8 million in 2008. Nimule, like in 2007, ranked fourth with informal exports valued at US$90.3 million (6.7 percent) and imports estimated at US$6.2 million compared to the value of US$53.2 million (6.9 percent) and imports valued at US$7.5 million (13.1 percent) recorded in 2007.

The other stations that recorded substantial informal trade flows were Mutukula, Katuna, Odramachaku, Malaba, Ntoroko, and Mirama Hills.

The combined exports and imports value that accrued from the ICBT Border expansion from the six border posts of Nimule, Cyanika, Ntoroko, Goli, Sono, and Kikagati were estimated at US$ 135.4 million (10 percent) and US$13.6 million (17.5 percent) respectively. This compares with an estimated value of informal exports and imports worth US$72.6 million and US$11.2 million in 2007 respectively. The bus terminal data was added onto respective stations where the buses exited such as Katuna, Mirama Hills and Oraba.

Overall, Oraba and Busia took the largest share of 62.2 percent and 35.6 percent of all the exports and imports transacted under informal trade respectively. This was an increase in share compared to the previous findings in 2007 where both stations came first with exports and imports flows of 51.9percent and 31.8 percent respectively. Although Sono contributed least in informal exports, its informal imports share stood at 4.1 percent which was quite significant compared to other crossing points.

In 2008, about 89 percent (US$1.2 billion) of informal exports passed through Oraba, Mpondwe, Busia, Nimule, and Mutukula border stations whereas approximately 71.0 percent (US$55.5 million) of the informal imports came through five border stations of Busia, Nimule, Mpondwe,Malaba, Mutukula and Paidha

3.8 Modes of Transport

The mode of transport is an important aspect of international trade that can inform infrastructural investment projects. Therefore, this information was collected to address this need. For the purposes of this survey, eight modes of transport used in conveying informally traded are analysed. These modes of transport are reported in Table 11 below.

In 2008, the main modes of transport used to convey informal exports were bicycles and vehicles whose values were estimated at US$121.7 million (9.0 percent) and 1.1 billion vehicles (84.0 percent) respectfully. For informal imports, head/hand, bicycles and vehicles were the most important means of transport whose combined value was estimated at US$33.6 (43.0 percent). This compares with a combined value of exports and imports for vehicles, bicycles and head/hand estimated at US$741.3 million (95.5 percent) and US$50.2

24 million (87.6 percent) in 2007 respectively. Vehicles were mostly used in Oraba, Mpondwe, Nimule, Katuna and Mutukula border posts.

Head/hand transported imports and exports estimated at US$1.48 million (1.9 percent) and US$33.1 million (2.5 percent) respectfully. The other modes of transport which includes pushcarts, wheel chairs, and boats conveyed informal exports estimated at US$60.2 million, whereas the imports were valued at US$9.9 million. The merchandise destined or originating from DRC through Ntoroko border post were transported using boats/canoes.

Wheel Chairs used by people with disabilities accounted for US$4.5 million (5.8 percent) of informal imports and US$3.8 million (0.3 percent) of exports. This suggests that people with disabilities participate in transporting informal imports of industrial goods that are light but valuable. The people with disabilities are mainly hired by traders especially along Uganda/Kenya border to ferry goods into Uganda such as sugar, salt, soap cooking oil and plastics.

Other modes of transport which include motorcycles and animals (mainly donkeys), contributed US$5.2 million (0.4 percent ) of exports and US$1.9 million (2.5 percent) of imports transacted under informal arrangement during 2008.

25 Table 11: 2008 Modes of transport by Value (US$ 000’) and Percentage Share of Exports and Imports

Mode Product Category Expor ts % Share Imports % Share ('000US$) Exports ('000US$) Imports Head/Hand All Products 33,071.24 2.5 1,475.56 1.9 Agricultural 10,268.43 0.8 2,653.33 3.4 Industrial 22,746.17 1.7 12,067.48 15.4 Other 56.63 0.0 34.77 0.0 Bicycle All Products 121,6 74.89 9.0 29,708.18 38.0 Agricultural 76,517.28 5.7 7,450.25 9.5 Industrial 45,063.18 3.3 22,224.66 28.5 Other 94.42 0.0 33.27 0.0 Push carts All Products 17,354.40 1.3 1,635.15 2.1 Agricultural 14,450.18 1.1 838.23 1.1 Industrial 2,837.36 0.2 794.71 1.1 Other 66.85 0.0 2.22 0.1 Vehicles All Products 1,133,481.59 84.0 2,374.21 3.1 Agricultural 133,364.89 9.9 1,421.27 1.8 Industrial 997,081.73 73.9 9,405.57 12.0 Other 3,034.97 0.2 123.80 0.2 Boat/Canoe All Products 34,313.43 2.5 1, 815.49 2.3 Agricultural 3,623.84 0.3 1,145.31 1.5 Industrial 30,684.87 2.3 670.07 0.9 Other 4.71 0.0 0.12 0.0 Wheel chairs All Products 3,797.89 0.3 4,500.28 5.8 Agricultural 1,131.28 0.1 236.11 0.3 Industrial 2,666.57 0.2 4,264.08 5.5 Other 0.03 0.0 0.10 0.0 Others All Products 5,161.96 0.4 1,957.13 2.5 Agricultural 2,816.68 0.2 871.58 1.1 Industrial 2,339.21 0.2 1,080.92 1.4 Other 6.08 0.0 462.33 0.6 Overall 1,348,855.39 100.0 78,113.89 100.0

The detailed analyses of commodity exports and imports are presented in Tables 12 to 19 in the Annex.

26

CHAPTER 4: ICBT IMPLICATIONS, CONCLUSIONS AND RECOMMENDATIONS

4.0 Summary of Findings

This chapter presents a summary of the survey findings, states the implications of informal trade activities and then suggests possible recommendations. It also highlights challenges and the way forward.

4.1 Main Findings

The main findings of the survey were as follows: a) Informal cross border trade between Uganda and her neighbours is significant and involves transactions of large amounts of both industrial products and agricultural commodities. b) During 2008, Uganda’s informal exports were estimated at US$1.3 billion while imports were estimated at US$78.1 million with a trade surplus of US$1.27 billion. The estimated total export earnings from formal and informal trade arrangements were US$3.0 billion in 2008 compared to an estimated value of 2.11 billion in 2007. c) Uganda had a comparative advantage in export of industrial and agricultural products to all neighbouring countries. The overall earnings from informal exports of industrial products were estimated at US$1.1 billion in 2008. The earnings from agricultural commodities were estimated at US$242.2 million in the same year. This compares with an estimated value of US$597.4 million from industrial products and US$173.4 million from agricultural commodities in 2007. d) In 2008, Sudan was the main export destination of the manufactured products from Uganda. Informal exports earnings from Sudan were valued at US$929.9 million, accounting for 68.9 percent of the total exports. Kenya was the main source of informal imports estimated at US $40.6 million, which is 52.0 percent of total imports. e) Fish, beans and maize were the main informal exports among the agricultural products whose earnings were estimated at US$69.6 million and US$31.0 million and US $22.3 million in 2008 respectively. This compares with an estimated value of fish and maize of US$53.3 million and US$18.7 million in 2007 respectively. The two main imported industrial products were clothes (new and second hand) and polythene paper/bags valued at US$6.9 million and 4.6 million respectively. The effect of 2007/08 fiscal policy could have contributed to the drastic reduction in the value of imported polythene bags from US$25.9 million in 2006 to US$4.6 million in 2008. f) Vehicles and bicycles were the main means of transport for informal exports while hand/head and bicycles were mainly used for imports.

27 g) During 2008, Oraba and Busia border stations were the busiest for informal exports and imports accounting for 62.2 percent and 35.6 percent respectively.

4.2 Implications

4.2.1 Price competitiveness of Informal goods

Agricultural commodities traded under ICBT were predominantly raw materials with virtually no value added. Under ICBT, no particular standards and quality control measures are observed hence adversely impacting on the price competitiveness of the traded products.

4.2.2 Domestic Industrial Competition

Domestic industries face stiff competition from cheap goods produced from neigbouring countries, especially manufactured goods from Kenya, whose industries are enjoying large economies of scale.

4.3 Conclusion and Recommendations a) The agricultural commodities transacted under informal trade like maize, beans, rice, groundnuts, and tubers (cassava, Irish potatoes, and yams) have direct implications on the country’s food security situation. Building silos and applying modern preservative methods on perishable commodities in bumper harvest period could ensure availability of such foodstuffs during scarcity times is highly recommended. This would lessen the burden of the government to meet food demands during disasters when the country experiences food scarcity. b) Regional states should initiate joint trade policies that target players in informal trade in order to enhance their income and product competitiveness. The current EPA negotiations if implemented (where EU and USA farmers obtain subsidies) could distort prices thereby exacerbating the poverty situation in most Africa countries. Hence the negotiations should also take into account the interest of informal traders. The harmonization of fiscal policies in the region could contribute to price stability and mitigate the impact of informal trade transactions on the economies concerned. c) Government should introduce a legal framework that compels informal traders to declare their merchandise at the time of crossing whether on bicycle or foot. Simplified procedures and documents similar to COMESA STR should be designed and administered by URA and its stakeholders. Moreover sensitization of trader’s is crucial in achieving this objective. d) There is need for sensitization of various stakeholders including customs, immigration, police, and other border authorities to enhance coordination of their activities in guiding informal traders. The awareness should focus on the rights of informal traders and the need to declare their goods formally.

28 e) There is need for member countries to remove all non tariff barriers (NTBs) in order to facilitate smooth flow of trade within the region. f) A number of border posts are operating below capacity due to infrastructural problems. A case in point is Sono where the road connecting Uganda to Kenya is impassable especially during the rainy season and the river separating the two countries has no bridge. It is thus recommended that infrastructural development be given priority in areas where volume of trade is increasing steadily. g) Value addition pursued under the National Export Strategy (NES) should be implemented in order to improve on price and the quality of traded commodities under informal trade. Informal traders should be supported by institutions responsible for standards and quality control to improve on their products. Such services could make their products competitive in the region and global market where competition is stiff. Traders engaged in sale of agricultural commodities should be encouraged to form cooperatives to bargain for favourable prices. h) Given the good performance of informal cross border trade and its potential to increase, the government in partnership with the private sector should take advantage of the peace in South Sudan, DRC and the return of peace in the Northern Uganda by planning strategically and developing markets at the border points. This would ensure that the border residents harness the proceeds of informal trade to increase household incomes.

4.4 Challenges

The insecurity problem is still a strong impediment to trade which result into loss of merchandise and lives of traders. Some border posts close completely for weeks and months and movement of persons is restricted leading to slow down of business activities at the border posts. Countries should jointly address the insecurity issue along the borders to promote trade and development.

Recording and pricing of assorted goods was problematic due quality and quantity variation.

The porous nature of the Ugandan borders is a major challenge that needs to be addressed in order for the survey to capture accurate trade flows during monitoring.

29 ANNEX

Table 12: 2008 ICBT Exports by Destination, Commodity Type and Value (US$ and Shs)

Country Commodity Unit Quantity US$ Shs % Share DRC Maize kg 77,778.6 25,374.3 42,295,272.1 0.0 Beans kg 694,421.4 422,084.6 720,674,954.9 0.0 Sugar kg 295,420.5 353,308.8 589,630,354.4 0.0 Other Grains kg 82,800.3 43,794.1 74,089,851.0 0.0 Bananas kg 604,773.8 142,334.1 238,737,668.8 0.0 Other Agric Multiple 6,643,184.7 7,158,635.1 12,098,245,452.7 0.5 Fish kg 12,466,333.1 36,271,894.9 60,827,189,814.4 2.7 Industrial Multiple 265,092,233.8 153,550,253.8 261,881,112,702.0 11.4 Other Products Multiple 4,696,849.3 487,581.4 823,521,429.5 0.0 Kenya Maize kg 40,197,735.6 13,145,369.3 22,100,492,116.4 1.0 Beans kg 23,309,148.8 19,984,902.7 33,734,411,660.3 1.5 Sugar kg 85,677.0 99,996.3 170,668,776.8 0.0 Other Grains kg 9,419,279.2 5,317,933.3 8,946,418,851.9 0.4 Bananas kg 11,934,222.4 7,028,404.5 11,861,196,157.1 0.5 Other Agric Multiple 30,163,554.2 20,919,963.8 35,566,971,614.2 1.6 Fish kg 5,381,481.1 10,102,790.8 17,070,364,620.4 0.7 Industrial Multiple 13,409,138.8 31,240,232.6 52,865,475,122.2 2.3 Other Products Multiple 1,709,367.6 39,109.3 66,223,679.9 0.0 Rwanda Maize kg 4,202,552.7 1,641,567.5 2,779,724,501.2 0.1 Beans kg 462,462.1 299,365.1 517,454,776.8 0.0 Sugar kg 705,998.0 811,074.0 1,373,957,359.0 0.1 Other Grains kg 6,487.5 5,961.9 10,254,750.0 0.0 Bananas kg 5,612,093.3 828,908.5 1,401,488,891.9 0.1 Other Agric Multiple 4,174,634.5 3,991,905.5 6,785,792,279.5 0.3 Fish kg 71,048.8 225,759.1 377,384,425.0 0.0 Industrial Multiple 34,319,094.5 47,150,833.0 80,269,834,117.7 3.5 Other Products Multiple 1,730,003.3 290,485.9 497,989,984.2 0.0 Sudan Maize kg 17,137,798.1 7,106,960.9 11,794,858,088.2 0.5 Beans kg 8,309,589.9 8,228,343.8 13,874,812,539.5 0.6 Sugar kg 1,425,758.1 1,681,948.2 2,851,553,193.4 0.1 Other Grains kg 1,518,538.5 570,904.7 981,880,196.9 0.0 Bananas kg 7,515,857.0 7,188,940.9 12,051,494,272.0 0.5 Other Agric Multiple 47,620,033.5 65,419,750.8 111,031,760,153.4 4.9 Fish kg 5,404,878.8 22,978,283.9 38,919,969,858.7 1.7 Industrial Multiple 320,227,731.1 814,435,790.8 1,389,615,282,069.2 60.4 Other Products Multiple 7,772,292.4 2,293,663.1 3,899,405,826.1 0.2 Tanzania Maize kg 1,432,506.9 376,584.1 647,284,098.0 0.0 Beans kg 2,291,499.1 2,062,261.2 3,817,212,485.7 0.2 Sugar kg 1,968,491.6 2,595,747.0 4,423,882,801.8 0.2 Other Grains kg 19,340.8 7,479.7 12,858,977.0 0.0 Bananas kg 813,824.9 90,428.5 151,230,828.0 0.0 Other Agric Multiple 561,307.7 560,452.7 946,622,515.9 0.0 Fish kg 8,368.0 25,245.5 43,209,587.8 0.0 Industrial Multiple 114,068,613.6 51,499,917.4 87,192,582,178.8 3.8 Other Products Multiple 772,999.2 152,858.2 254,676,864.7 0.0 Total 1,348,855,385.6 2,296,202,177,718.9 100.0

30 Table 13: ICBT Imports by Origin, Commodity Type and Value (Shs & US$)

Country Commodity Unit Quantity Value (US$) Value (Shs) % Share Dr Congo Maize kg 1,823,413 490,546 841,328,369 0.6 Beans kg 3,709,429 2,369,091 3,927,089,479 3.0 Sugar kg 17,993 18,479 31,367,238 0.0 Other Grains kg 149,355 54,026 92,512,894 0.1 Bananas kg 6,534,521 2,599,259 4,400,132,862 3.3 Other Agric Multiple 12,737,558 7,100,362 12,180,466,980 9.1 Fish kg 164,894 1,006,465 1,684,017,058 1.3 Industrial Multiple 8,753,601 7,391,245 12,446,193,152 9.5 Other Products Multiple 1,397,398 47,462 78,884,843 0.1 Kenya Maize kg 2,601,738 1,119,257 1,836,723,309 1.4 Beans kg 359,238 326,635 531,903,654 0.4 Sugar kg 531,259 606,133 1,012,890,151 0.8 Other Grains kg 72,224 37,399 63,798,709 0.0 Bananas kg 90,832 43,424 73,634,781 0.1 Other Agric Multiple 4,326,657 3,611,651 6,051,843,043 4.6 Fish kg 256,588 988,367 1,669,422,543 1.3 Industrial Multiple 26,524,123 33,836,650 57,375,532,096 43.3 Other Products Multiple 683,976 50,978 85,852,197 0.1 Rwanda Maize kg 23,223 7,738 12,800,174 0.0 Beans kg 418,733 277,046 457,090,996 0.4 Sugar kg 5,611 5,456 8,977,600 0.0 Other Grains kg 9,054 4,017 6,901,500 0.0 Bananas kg 10,135 1,270 2,117,174 0.0 Other Agric Multiple 1,232,362 700,850 1,173,291,701 0.9 Industrial Multiple 162,789 166,862 280,201,938 0.2 Other Products Multiple 6,033 1,010 1,722,082 0.0 Sudan Maize kg 93,868 47,764 78,279,796 0.1 Beans kg 198,049 221,449 365,084,300 0.3 Sugar kg 242,851 295,323 494,184,148 0.4 Other Grains kg 0 278 480,000 0.0 Bananas kg 2,129 2,258 3,900,185 0.0 Other Agric Multiple 1,265,435 2,512,239 4,178,850,961 3.2 Fish kg 4,099 7,999 13,332,863 0.0 Industrial Multiple 3,167,570 6,281,215 10,468,824,373 8.0 Other Products Multiple 21,703 2,616 4,392,610 0.0 Tanzania Maize kg 1,312,546 327,149 543,926,930 0.4 Beans kg 1,295,823 670,110 1,157,234,725 0.9 Sugar kg 6,733 16,154 27,864,811 0.0 Other Grains kg 720 262 447,000 0.0 Bananas kg 627,325 95,632 160,255,077 0.1 Other Agric Multiple 2,428,655 2,535,013 4,185,762,348 3.2 Fish kg 34,217 249,950 420,255,573 0.3 Industrial Multiple 2,717,120 1,889,970 3,158,376,201 2.4 Other Products Multiple 289,280 96,829 171,354,451 0.1 Overall 78,113,885 131,759,502,878 100.0

31 Table 14: Exports by Customs Station, Commodity Type, Quantity and Value (Shs & US$)

Customs Station Commodity Unit Quantity Val ue (US$) Value (shs) % Share Bibia Maize kg 12,776,584 5,610,706 9,234,651,966 0.4 Beans kg 1,148,989 1,169,650 1,939,170,848 0.1 Sugar kg 233,552 356,685 587,451,516 0.0 Other Grains kg 67,712 26,854 45,079,693 0.0 Bananas kg 4,236,244 4,072,723 6,757,989,998 0.3 Other Agric Multiple 14,966,641 18,578,506 30,852,166,700 1.4 Fish kg 698,934 1,972,042 3,271,713,327 0.1 Industrial Multiple 29,357,173 58,443,493 97,074,368,157 4.3 Other Products Multiple 378,455 103,982 173,634,488 0.0 Bunagana Maize kg 1,387 282 486,822 0.0 Beans kg 104,689 69,888 124,151,845 0.0 Sugar kg 13,151 14,054 24,670,903 0.0 Other Grains kg 22 12 20,200 0.0 Bananas kg 7,580 1,324 2,227,400 0.0 Other Agric Multiple 280,126 225,315 382,230,714 0.0 Fish kg 994,583 1,633,172 2,822,707,717 0.1 Industrial Multiple 4,723,814 3,909,664 6,732,177,602 0.3 Other Products Multiple 386,444 158,446 271,467,115 0.0 Busia Maize kg 22,856,726 8,177,101 13,703,031,425 0.6 Beans kg 20,092,278 17,798,317 30,097,134,710 1.3 Sugar kg 81,586 95,891 163,671,287 0.0 Other Grains kg 7,391,379 4,241,733 7,131,214,131 0.3 Bananas kg 2,907,220 1,821,218 3,073,670,139 0.1 Other Agric Multiple 18,316,855 14,430,292 24,624,825,848 1.1 Fish kg 3,804,273 7,313,059 12,357,535,431 0.5 Industrial Multiple 11,640,237 28,310,875 47,937,109,834 2.1 Other Products Multiple 579,411 33,247 56,094,228 0.0 Cyanika Maize kg 516,234 295,772 490,044,741 0.0 Beans kg 184,537 113,644 195,019,847 0.0 Sugar kg 86,805 100,797 173,194,792 0.0 Other Grains kg 4,815 5,225 8,988,750 0.0 Bananas kg 3,365 671 1,173,179 0.0 Other Agric Multiple 937,777 786,276 1,337,164,835 0.1 Fish kg 17,373 36,871 60,916,222 0.0 Industrial Multiple 1,665,631 6,276,744 10,547,899,543 0.5 Other Products Multiple 130,834 17,076 28,991,839 0.0 Goli Maize kg 17,521 4,098 7,012,857 0.0 Beans kg 5,360 3,185 5,220,000 0.0 Sugar kg 1,304 1,418 2,506,474 0.0 Bananas kg 50 84 137,500 0.0 Other Agric Multiple 73,256 52,819 89,481,069 0.0 Fish kg 2,504 4,672 7,789,520 0.0 Industrial Multiple 2,057,638 1,984,659 3,338,372,676 0.1 Other Products Multiple 282,794 134,044 224,158,105 0.0 Ishasha River Maize kg 27,578 11,226 18,501,705 0.0 Beans kg 13,853 11,049 17,905,803 0.0 Sugar kg 7,616 9,076 15,297,063 0.0 Other Grains kg 54,527 28,946 48,858,698 0.0

32 Table 14 Cont: Exports by Customs Station, Commodity Type, Quantity and Value (Shs & US$)

Customs Station Commodity Unit Quantity Value (US$) Value (shs) % Share Ishasha River Bananas kg 178,044 34,919 57,673,443 0.0 Other Agric Multiple 438,844 239,359 403,832,544 0.0 Fish kg 1,410,295 3,358,223 5,689,448,061 0.2 Industrial Multiple 1,070,139 667,149 1,128,992,939 0.0 Other Products Multiple 21,142 621 1,062,822 0.0 Katuna Maize kg 2,840,670 2,850,828 4,832,849,402 0.2 Beans kg 137,953 88,843 156,380,680 0.0 Other Grains kg 23,052,705 26,908,606 45,805,957,820 2.0 Bananas kg 3,335,112 1,258,732 2,143,393,007 0.1 Other Agric Multiple 40,541 168,794 282,749,820 0.0 Fish kg 444,690 531,251 897,992,572 0.0 Industrial Multiple 1,159,101 156,290 265,071,860 0.0 Other Products Multiple 765,103 40,625 69,057,964 0.0 Kikagati Maize kg 222 71 118,000 0.0 Beans kg 1,045 633 1,060,425 0.0 Sugar kg 6,860 7,528 12,638,153 0.0 Other Grains kg 441 198 330,977 0.0 Bananas kg 425,881 33,665 56,576,757 0.0 Other Agric Multiple 112,152 35,047 59,015,172 0.0 Fish kg 557 2,588 4,326,387 0.0 Industrial Multiple 3,511,828 1,138,796 1,904,248,313 0.1 Other Products Multiple 715,224 33,823 57,007,303 0.0 Lwakhakha Maize kg 742,711 333,808 541,065,148 0.0 Beans kg 1,139,698 750,362 1,256,476,576 0.1 Sugar kg 428 501 865,163 0.0 Other Grains kg 28,271 18,488 31,425,799 0.0 Bananas kg 5,045,805 2,557,005 4,317,183,984 0.2 Other Agric Multiple 373,706 191,216 327,810,856 0.0 Fish kg 63,983 154,109 261,546,471 0.0 Industrial Multiple 299,861 81,635 138,536,396 0.0 Other Products Multiple 397,218 2,348 4,231,436 0.0 Malaba Maize kg 1,358,071 422,703 711,740,448 0.0 Beans kg 502,501 420,667 704,752,318 0.0 Other Grains kg 1,992,945 1,054,538 1,778,431,704 0.1 Bananas kg 3,802,212 2,571,252 4,335,892,376 0.2 Other Agric Multiple 9,624,432 5,682,589 9,568,118,541 0.4 Fish kg 1,512,249 2,633,476 4,447,735,346 0.2 Industrial Multiple 1,132,674 2,529,828 4,252,992,703 0.2 Other Products Multiple 715,562 1,854 3,145,543 0.0 Mirama Hills Maize kg 351,208 87,064 146,286,753 0.0 Beans kg 139,972 96,878 166,054,250 0.0 Sugar kg 174,502 179,026 302,769,995 0.0 Other Grains kg 1,673 737 1,266,000 0.0 Bananas kg 4,449,628 671,948 1,135,243,853 0.0 Other Agric Multiple 396,188 354,801 615,778,043 0.0 Fish kg 13,135 20,094 33,718,384 0.0 Industrial Multiple 9,600,759 13,965,483 23,915,976,754 1.0 Other Products Multiple 834,066 232,786 399,940,181 0.0

33 Table 14 Cont: Exports by Customs Station, Commodity Type, Quantity and Value (Shs & US$)

Customs Station Commodity Unit Quantity Value (US$) Value (shs) % Share Mpondwe Maize kg 2,253 626 1,077,303 0.0 Beans kg 284,123 168,758 294,494,556 0.0 Sugar kg 9,866 10,603 17,534,042 0.0 Other Grains kg 19,655 10,586 18,055,000 0.0 Bananas kg 363,040 86,940 146,363,436 0.0 Other Agric Multiple 4,000,354 2,793,962 4,731,043,692 0.2 Fish kg 8,872,674 27,602,982 46,103,649,878 2.0 Industrial Multiple 218,463,668 99,735,587 171,477,072,741 7.4 Other Products Multiple 3,773,202 116,335 195,477,154 0.0 Mutukula Maize kg 1,432,285 376,513 647,166,098 0.0 Beans kg 2,290,454 2,061,628 3,816,152,061 0.2 Sugar kg 1,961,632 2,588,219 4,411,244,649 0.2 Other Grains kg 18,900 7,282 12,528,000 0.0 Bananas kg 387,944 56,763 94,654,071 0.0 Other Agric Multiple 449,156 525,406 887,607,344 0.0 Fish kg 7,811 22,657 38,883,201 0.0 Industrial Multiple 110,556,786 50,361,121 85,288,333,866 3.7 Other Products Multiple 57,775 119,035 197,669,561 0.0 Ntoroko Maize kg 2,308 688 1,154,286 0.0 Beans kg 2,960 3,251 5,548,000 0.0 Sugar kg 124,911 164,250 273,477,050 0.0 Other Grains kg - Bananas kg 29,521 11,246 19,153,036 0.0 Other Agric Multiple 1,294,356 3,371,913 5,688,785,409 0.2 Fish kg 1,276 186,362 319,000,000 0.0 Industrial Multiple 22,384,951 29,271,600 48,933,685,263 2.2 Other Products Multiple 65,275 4,711 8,054,786 0.0 Odramachaku Maize kg 17,655 6,862 11,416,550 0.0 Beans kg 31,981 31,906 52,983,825 0.0 Sugar kg 95,923 107,576 178,969,080 0.0 Other Grains kg 5,042 2,769 4,631,947 0.0 Bananas kg 17,313 5,838 9,837,147 0.0 Other Agric Multiple 335,478 358,118 605,240,328 0.0 Fish kg 779,520 2,500,935 4,204,746,329 0.2 Industrial Multiple 11,082,212 13,532,497 22,756,218,015 1.0 Other Products Multiple 54,845 27,836 46,466,152 0.0 Oraba Maize kg 4,361,214 1,496,255 2,560,206,122 0.1 Beans kg 7,160,601 7,058,693 11,935,641,691 0.5 Sugar kg 1,192,206 1,325,263 2,264,101,678 0.1 Other Grains kg 1,450,827 544,050 936,800,503 0.0 Bananas kg 3,279,613 3,116,218 5,293,504,274 0.2 Other Agric Multiple 32,653,393 46,841,244 80,179,593,454 3.5 Fish kg 4,705,945 21,006,242 35,648,256,531 1.6 Industrial Multiple 290,870,558 755,992,298 1,292,540,913,912 56.0 Other Products Multiple 7,393,838 2,189,681 3,725,771,338 0.2 Paidha Maize kg 8,895 1,543 2,563,749 0.0 Beans kg 250,160 133,089 218,727,856 0.0 Sugar kg 34,770 37,926 62,377,887 0.0

34 Table 14 Cont: Exports by Customs Station, Commodity Type, Quantity and Value (Shs & US$)

Customs Station Commodity Unit Quantity Value (US$) Value (shs) % Share Paidha Other Grains kg 3,394 1,412 2,409,006 0.0 Bananas kg 9,227 1,984 3,345,706 0.0 Other Agric Multiple 185,312 67,140 112,485,460 0.0 Fish kg 229,190 325,260 558,534,411 0.0 Industrial Multiple 1,996,774 2,228,429 3,746,861,038 0.2 Other Products Multiple 86,680 41,208 69,363,018 0.0 Sono Maize kg 464,025 120,334 209,418,413 0.0 Beans kg 352,413 211,128 359,540,575 0.0 Sugar kg 907 951 1,614,498 0.0 Other Grains kg 345 232 399,681 0.0 Bananas kg 126,531 52,104 89,141,170 0.0 Other Agric Multiple 1,544,423 439,613 743,762,696 0.0 Fish kg 968 2,110 3,482,122 0.0 Industrial Multiple 80,448 110,068 184,433,718 0.0 Other Products Multiple 17,134 1,658 2,748,116 0.0 Suam River Maize kg 14,776,203 4,091,424 6,935,236,683 0.3 Beans kg 1,222,260 804,429 1,316,507,481 0.1 Sugar kg 2,756 2,654 4,517,828 0.0 Other Grains kg 6,339 2,942 4,947,537 0.0 Bananas kg 52,454 26,826 45,308,488 0.0 Other Agric Multiple 304,138 176,253 302,453,673 0.0 Fish kg 7 37 65,250 0.0 Industrial Multiple 255,920 207,828 352,402,471 0.0 Other Products Multiple 43 2 4,357 0.0 Vvura Maize kg 181 50 82,000 0.0 Beans kg 1,295 959 1,643,071 0.0 Sugar kg 7,879 8,405 14,797,855 0.0 Other Grains kg 160 68 115,000 0.0 Other Agric Multiple 35,460 50,009 85,146,237 0.0 Fish kg 176,290 660,289 1,121,313,898 0.0 Industrial Multiple 3,313,038 2,220,670 3,767,732,427 0.2 Other Products Multiple 26,469 4,379 7,472,279 0.0 Overall 1,348,855,386 2,296,202,177,719 100.0

35 Table 15: Imports by Customs Station, Commodity Type, Quantity and Value (Shs & US$) Customs Station Commodity Unit Quantity Value (US$) Value (Shs) % Share Bibia/Nimule Maize kg 90,203.8 46,599.4 76,369,845.1 0.1 Beans kg 169,926.4 191,220.0 315,504,963.0 0.2 Sugar kg 121,385.8 164,493.4 272,098,084.3 0.2 Other Grains kg 0.5 278.1 480,000.0 0.0 Other Agric Multiple 812,944.6 1,994,784.9 3,307,449,119.7 2.6 Fish kg 4,047.9 7,806.4 13,021,497.4 0.0 Industrial Multiple 2,156,735.3 3,825,134.5 6,322,889,273.6 4.9 Other Products Multiple 18,876.1 865.3 1,416,724.6 0.0 Bunagana Maize kg 242,973.0 55,395.6 94,277,760.3 0.1 Beans kg 806,541.7 437,212.6 722,789,509.9 0.6 Sugar kg 211.7 227.5 382,928.2 0.0 Other Grains kg 110.0 53.2 90,500.0 0.0 Bananas kg 362,750.3 73,194.7 127,887,043.3 0.1 Other Agric Multiple 3,162,204.7 1,431,334.1 2,420,530,511.1 1.8 Fish kg 98,352.8 114,283.4 195,659,918.9 0.1 Industrial Multiple 382,369.9 429,675.6 738,305,377.5 0.6 Other Products Multiple 460,918.8 4,934.9 8,319,158.6 0.0 Busia Maize kg 2,098,839.1 917,000.4 1,502,167,782.0 1.2 Beans kg 337,952.8 314,881.1 512,346,626.6 0.4 Sugar kg 242,457.1 291,269.6 485,059,561.8 0.4 Other Grains kg 60,313.1 24,397.8 42,213,070.0 0.0 Bananas kg 52,224.6 28,853.9 48,245,620.2 0.0 Other Agric Multiple 2,495,991.4 1,846,830.6 3,112,798,050.1 2.4 Fish kg 249,493.6 964,618.6 1,629,670,728.3 1.2 Industrial Multiple 17,060,871.6 23,383,468.6 39,700,943,579.7 29.9 Other Products Multiple 56,260.6 29,727.6 50,532,692.7 0.0 Cyanika Maize kg 5,359.1 2,325.5 3,857,817.4 0.0 Beans kg 154,608.9 88,019.1 145,288,731.9 0.1 Other Grains kg 8,714.4 3,857.8 6,629,499.9 0.0 Bananas kg 689.3 104.5 199,299.0 0.0 Other Agric Multiple 588,446.9 190,121.7 313,374,776.2 0.2 Industrial Multiple 80,986.9 58,657.6 99,454,563.6 0.1 Other Products Multiple 337.0 61.2 103,250.0 0.0 Goli Maize kg 12,731.2 2,880.4 4,751,705.0 0.0 Beans kg 469,745.7 446,402.2 744,503,135.0 0.6 Sugar kg 7.2 0.6 1,141.0 0.0 Other Grains kg 525.0 121.7 210,000.0 0.0 Bananas kg 15,612.9 3,802.6 6,414,300.1 0.0 Other Agric Multiple 579,912.5 211,073.0 355,550,871.4 0.3 Fish kg 6,546.1 11,955.1 20,693,606.3 0.0 Industrial Multiple 57,074.2 12,816.4 21,216,775.3 0.0 Other Products Multiple 469.7 36.4 65,935.8 0.0 Ishasha River Maize kg 5,054.8 1,038.2 2,003,150.0 0.0 Beans kg 47,432.8 31,529.2 53,643,375.9 0.0 Sugar kg 68.1 82.8 141,200.2 0.0 Other Grains kg 25,064.2 1,782.7 2,933,868.8 0.0 Bananas kg 95.5 24.8 42,450.0 0.0 Other Agric Multiple 368,769.2 202,548.4 354,209,813.0 0.3 Fish kg 184.0 411.6 690,200.0 0.0 Industrial Multiple 273,769.3 204,080.7 343,143,536.3 0.3

36 Table 15: Imports by Customs Station, Commodity Type, Quantity and Value (Shs & US$) Customs Station Commodity Unit Quantity Value (US$) Value (Shs) % Share Other Products Multiple 11,641.3 232.4 389,160.7 0.0 Katuna Maize kg 15,360.0 4,691.1 7,716,000.0 0.0 Beans kg 78,464.4 58,114.7 97,497,691.3 0.1 Sugar kg 5,611.3 5,455.7 8,977,600.3 0.0 Bananas kg 9,258.0 1,134.1 1,866,000.0 0.0 Other Agric Multiple 610,771.1 490,728.5 825,978,804.2 0.6 Industrial Multiple 64,811.5 92,085.6 153,896,983.7 0.1 Other Products Multiple 5,696.1 948.7 1,618,832.4 0.0 Kikagati Maize kg 1,100,789.9 277,367.2 459,582,977.0 0.4 Beans kg 1,214,916.1 578,317.3 996,028,420.8 0.7 Sugar kg 8.5 10.1 17,014.2 0.0 Other Grains kg 720.0 261.6 447,000.0 0.0 Bananas kg 231,344.0 37,159.5 61,917,321.1 0.0 Other Agric Multiple 825,615.8 767,542.0 1,265,270,634.5 1.0 Fish kg 641.6 1,533.8 2,555,732.5 0.0 Industrial Multiple 401,319.5 245,903.7 397,823,273.0 0.3 Other Products Multiple 17,005.6 1,346.5 2,251,669.6 0.0 Lwakhakha Maize kg 72,692.1 30,706.3 54,135,718.6 0.0 Beans kg 2,833.1 1,963.1 3,302,498.6 0.0 Sugar kg 39,423.3 45,805.1 77,938,805.3 0.1 Other Grains kg 353.6 178.6 303,377.9 0.0 Bananas kg 10,920.7 3,296.3 5,695,244.7 0.0 Other Agric Multiple 75,663.5 41,294.9 70,409,952.9 0.1 Fish kg 227.1 573.5 956,671.2 0.0 Industrial Multiple 2,360,981.2 1,654,980.6 2,799,503,356.3 2.1 Other Products Multiple 7,181.5 867.0 1,480,652.6 0.0 Malaba Maize kg 56,908.1 24,214.7 40,106,346.8 0.0 Beans kg 45.5 56.1 96,547.5 0.0 Sugar kg 123,512.7 134,562.0 226,192,590.2 0.2 Other Grains kg 140.0 73.6 121,000.0 0.0 Bananas kg 23,008.3 9,568.9 16,632,037.5 0.0 Other Agric Multiple 450,023.9 418,935.5 718,429,687.4 0.5 Fish kg 824.8 3,751.0 6,321,885.9 0.0 Industrial Multiple 2,923,737.2 5,130,732.5 8,707,037,596.7 6.6 Other Products Multiple 3,891.0 903.5 1,551,390.1 0.0 Mirama Hills Maize kg 2,503.8 721.5 1,226,357.1 0.0 Beans kg 185,659.7 130,912.6 214,304,572.8 0.2 Other Grains kg 340.0 159.0 272,000.0 0.0 Bananas kg 187.5 31.3 51,875.0 0.0 Other Agric Multiple 33,143.7 20,000.1 33,938,120.8 0.0 Industrial Multiple 16,990.7 16,118.8 26,850,390.9 0.0 Mpondwe Maize kg 128,298.4 30,176.4 50,562,436.2 0.0 Beans kg 330,749.2 246,136.8 408,654,500.1 0.3 Sugar kg 10,717.6 11,555.6 19,683,365.5 0.0 Other Grains kg 6,906.3 5,423.2 8,790,056.3 0.0 Bananas kg 4,637,983.8 2,008,910.4 3,395,291,228.1 2.6 Other Agric Multiple 627,029.6 422,890.2 705,713,697.6 0.5 Fish kg 4,881.0 21,292.2 34,521,209.6 0.0 Industrial Multiple 6,831,280.4 4,626,733.2 7,776,440,623.3 5.9 Other Products Multiple 871,492.7 34,642.6 57,250,808.5 0.0

37 Table 15: Imports by Customs Station, Commodity Type, Quantity and Value (Shs & US$) Customs Station Commodity Unit Quantity Value (US$) Value (Shs) % Share Mutukula Maize kg 211,756.0 49,782.1 84,343,952.7 0.1 Beans kg 80,907.2 91,792.5 161,206,304.3 0.1 Sugar kg 6,724.9 16,143.9 27,847,796.8 0.0 Bananas kg 395,981.1 58,472.3 98,337,755.5 0.1 Other Agric Multiple 1,603,039.5 1,767,471.3 2,920,491,713.9 2.3 Fish kg 33,575.0 248,416.1 417,699,840.2 0.3 Industrial Multiple 2,315,800.8 1,644,066.1 2,760,552,927.5 2.1 Other Products Multiple 272,274.0 95,482.5 169,102,781.6 0.1 Beans kg 2,410.3 2,464.9 4,048,951.6 0.0 Ntoroko Other Agric Multiple 19,344.1 27,687.2 47,152,779.6 0.0 Fish kg 41,226.2 814,070.9 1,359,596,137.3 1.0 Industrial Multiple 192,809.9 442,454.1 731,427,135.2 0.6 Odramachaku Maize kg 20,043.6 6,944.6 11,583,827.6 0.0 Beans kg 9,467.6 8,149.4 13,658,231.2 0.0 Sugar kg 6,956.9 6,579.4 11,104,352.7 0.0 Other Grains kg 38,894.7 14,017.1 23,800,554.6 0.0 Bananas kg 21,964.1 6,346.1 10,719,190.7 0.0 Other Agric Multiple 2,216,774.3 1,669,525.5 2,849,643,274.2 2.1 Fish kg 828.6 1,802.1 3,032,620.7 0.0 Industrial Multiple 286,031.7 1,022,593.1 1,725,378,533.3 1.3 Other Products Multiple 17,912.2 1,278.8 2,154,707.5 0.0 Oraba Maize kg 3,663.8 1,164.9 1,909,950.8 0.0 Beans kg 28,122.2 30,228.5 49,579,337.4 0.0 Sugar kg 121,464.8 130,829.2 222,086,063.6 0.2 Bananas kg 2,129.2 2,257.8 3,900,185.0 0.0 Other Agric Multiple 452,490.2 517,453.6 871,401,841.2 0.7 Fish kg 51.3 193.0 311,365.9 0.0 Industrial Multiple 1,010,835.2 2,456,080.1 4,145,935,099.4 3.1 Other Products Multiple 2,827.1 1,751.2 2,975,885.6 0.0 Maize kg 1,254,691.6 330,318.3 571,248,044.7 0.4 Paidha Beans kg 1,630,044.4 917,184.4 1,515,225,942.4 1.2 Sugar kg 31.9 32.9 54,250.3 0.0 Other Grains kg 275.0 126.0 208,200.0 0.0 Bananas kg 72,417.7 15,784.0 26,649,355.5 0.0 Other Agric Multiple 3,932,108.9 2,512,383.7 4,398,940,270.5 3.2 Fish kg 6,255.3 13,411.6 22,304,381.6 0.0 Industrial Multiple 564,453.0 527,807.2 905,654,339.2 0.7 Other Products Multiple 24,613.9 4,061.2 6,917,841.3 0.0 Sono Maize kg 75,089.9 22,684.0 37,454,270.9 0.0 Beans kg 16,051.7 8,335.2 13,844,714.2 0.0 Sugar kg 115,251.4 124,111.0 206,397,042.8 0.2 Other Grains kg 88.7 59.2 106,377.6 0.0 Bananas kg 3,976.1 1,364.5 2,439,163.7 0.0 Other Agric Multiple 1,078,915.5 1,141,798.2 1,877,184,496.6 1.5 Fish kg 370.0 741.7 1,232,770.3 0.0 Industrial Multiple 1,709,069.6 1,883,926.8 3,159,819,360.7 2.4 Other Products Multiple 150,818.2 4,443.7 7,285,284.7 0.0 Suam River Maize kg 298,209.1 124,651.6 202,859,190.5 0.2 Beans kg 2,354.9 1,399.8 2,313,267.6 0.0 Sugar kg 10,614.6 10,385.1 17,302,151.3 0.0

38 Table 15: Imports by Customs Station, Commodity Type, Quantity and Value (Shs & US$) Customs Station Commodity Unit Quantity Value (US$) Value (Shs) % Share Suam River Other Grains kg 11,328.2 12,689.7 21,054,884.0 0.0 Bananas kg 702.7 340.1 622,715.0 0.0 Other Agric Multiple 226,062.8 162,791.9 273,020,856.4 0.2 Fish kg 5,672.2 18,681.9 31,240,487.1 0.0 Industrial Multiple 2,469,463.9 1,783,541.2 3,008,228,203.0 2.3 Other Products Multiple 465,824.7 15,036.0 25,002,177.2 0.0 Vvura Maize kg 159,620.2 63,792.1 106,901,444.6 0.1 Beans kg 413,037.3 280,011.5 464,565,833.0 0.4 Other Grains kg 77,580.1 32,502.5 56,479,714.6 0.0 Bananas kg 1,423,697.1 491,196.1 833,129,293.8 0.6 Other Agric Multiple 1,831,414.9 622,920.0 1,048,725,762.9 0.8 Fish kg 6,620.1 29,237.9 47,518,983.6 0.0 Industrial Multiple 165,812.3 125,084.4 204,626,831.9 0.2 Other Products Multiple 10,349.9 2,276.2 3,787,230.9 0.0 Overall 78,113,885.1 131,759,502,877.7 100.0

39

Table 16: ICBT Exports by Commodity, Quantity and Value (UShs & US$)

Commodity Unit Quantity Value (US$) Value (shs)

Maize Kg 63,048,371.870 22,295,856.140 37,364,654,075.760

Beans Kg 35,067,121.350 30,996,957.370 52,664,566,417.160

Sugar Kg 4,481,345.120 5,542,074.270 9,409,692,485.340

Other Grains Kg 11,046,446.200 5,946,073.770 10,025,502,626.820

Bananas Kg 26,480,771.440 15,279,016.560 25,704,147,817.810

Other Agric Multiple 89,162,714.500 98,050,707.860 166,429,392,015.590

Fish Kg 23,332,109.710 69,603,974.250 117,238,118,306.260

Industrial Multiple 747,116,811.880 1,097,877,027.590 1,871,824,286,189.760

Other Products Multiple 16,681,511.700 3,263,697.820 5,541,817,784.350

Overall 1,348,855,385.600 2,296,202,177,718.900

Table 17: ICBT Imports by Commodity, Quantity and Value (UShs & US$)

Commodity Unit Quantity Value (US$) Value (Shs)

Maize Kg 5,854,787.4 1,992,454.4 3,313,058,577.4

Beans Kg 5,981,271.7 3,864,331.1 6,438,403,155.1

Sugar Kg 804,448.0 941,543.9 1,575,283,948.4

Other Grains Kg 231,353.7 95,981.8 164,140,103.7

Bananas Kg 7,264,942.8 2,741,841.8 4,640,040,078.3

Other Agric Multiple 21,990,666.9 16,460,115.4 27,770,215,034.2

Fish Kg 459,797.6 2,252,780.7 3,787,028,036.6

Industrial Multiple 41,325,203.8 49,565,940.6 83,729,127,760.0

Other Products Multiple 2,398,390.1 198,895.6 342,206,184.1

Overall 78,113,885.2 131,759,502,877.7

40

Table 18: 2008 Major Informal Exports of Agricultural and Industrial Products to EAC

Country Item Value (US $) % share

Kenya Agricultural Products 76,499,364.4 34.69 Beans 19,984,902.7 9.06 Maize Grains 13,145,198.1 5.96 Fish 10,102,790.8 4.58 Ground Nuts 9,640,692.8 4.37 Bananas 7,028,404.5 3.19 Millet Grains 5,313,210.8 2.41 Eggs 2,544,565.6 1.15 Sorghum 1,146,527.3 0.52 Tomatoes 1,125,822.4 0.51 Mangoes 1,069,008.9 0.48 Peas 816,640.1 0.37 Onions 628,836.3 0.29 Pineapples 561,597.6 0.25 Sim Sim 545,335.2 0.25 Oranges 500,656.9 0.23 Cassava 448,160.4 0.20 Water Melons 251,672.0 0.11 Potatoes (Irish) 238,716.9 0.11 Soya Beans 235,582.8 0.11 Other 1,171,042.3 0.53

Industrial Products 31,340,228.9 14.21 Shoes (New & Used) 17,334,904.5 7.86 Bitenges 4,697,450.1 2.13 Clothes (New & Used) 1,390,494.0 0.63 Bags 889,247.3 0.40 Petroleum Jelly 863,280.5 0.39 Bed Covers 669,995.0 0.30 Dry Cells 574,494.4 0.26 Table Clothes 480,231.2 0.22 Timber 406,922.4 0.18 Bed Sheets 389,468.0 0.18 Charcoal 380,984.7 0.17 Maize Flour 286,065.5 0.13 Beer 267,369.4 0.12 Cassava Flour 178,525.8 0.08 Sandals 170,739.9 0.08 Tyres 169,276.8 0.08 Other 2,190,779.5 0.99

Other Products 39,109.3 0.02

41 Table 18 Cont: 2008 Major Informal Exports of Agricultural and Industrial Products to EAC Country Item Value(US$) %Share

Rwanda Agricultural Products 6,993,467.6 3.17

Maize Grains 1,641,567.5 0.74

Tobacco 1,148,522.6 0.52

Bananas 828,908.5 0.38

Sorghum 548,598.5 0.25

Apples 537,031.1 0.24

Potatoes (Irish) 315,307.7 0.14

Beans 299,365.1 0.14

Eggs 245,176.1 0.11

Fish 225,759.1 0.10

Rice 215,182.8 0.10

Oranges 178,722.6 0.08

Onions 161,212.0 0.07

Cattle 141,615.1 0.06

Chicken 101,402.6 0.05

Ground Nuts 68,187.7 0.03

Other 336,908.8 0.15

Industrial Products 47,961,907.0 21.75

Clothes (New & Used) 14,401,762.7 6.53

Shoes (New & Used) 8,426,180.5 3.82

Vehicle Parts 1,347,352.8 0.61

Maize Flour 1,295,366.2 0.59

Suit Cases 1,177,896.5 0.53

Sandals 979,994.5 0.44

Hair 888,368.1 0.40

Sugar 811,074.0 0.37

Matresses 738,086.3 0.33

Chalk 728,074.9 0.33

Human Medicine 628,787.3 0.29

Bed Sheets 621,702.6 0.28

Gum Boots 618,306.2 0.28

Bags 603,014.6 0.27

Pampers 533,889.4 0.24

Other 14,162,050.5 6.42

Other Products 290,485.9 0.13

42 Table 18 Cont: 2008 Major Informal Exports of Agricultural and Industrial Products to EAC

Country Item Value(US $) %Share

Tanzania Agricultural Products 3,122,451.8 1.42 Beans 2,062,261.2 0.94 Maize Grains 376,584.1 0.17 Ginger 220,311.7 0.10 Eggs 96,059.4 0.04 Bananas 90,428.5 0.04 Sorghum 59,330.4 0.03 Potatoes (Irish) 40,453.8 0.02 Apples 32,212.9 0.01 Fish 25,245.5 0.01 Tobacco 18,938.1 0.01 Chicken 18,844.2 0.01 Meat 16,957.0 0.01 Mairungi Leaves 9,303.4 0.00 Millet Grains 7,479.7 0.00 Ground Nuts 6,953.2 0.00 Other 41,088.7 0.02

Indu strial Products 54,095,664.4 24.53 Shoes (New & Used) 10,166,107.8 4.61 Clothes (New & Used) 8,649,253.4 3.92 Human Medicine 6,386,426.7 2.90 Sugar 2,595,535.3 1.18 Alcohol/Spirits 2,486,467.5 1.13 Bitenges 2,118,889.5 0.96 Sandals 2,082,642.7 0.94 Maize Flour 2,016,526.4 0.91 Match Boxes 1,934,541.2 0.88 Panties 1,780,170.1 0.81 Polythene Bags 1,684,329.1 0.76 Veterinary Medicine 868,538.5 0.39 Petroleum Jelly 800,922.0 0.36 Iron Sheets 791,712.0 0.36 Bags 744,113.0 0.34 Tents 605,554.6 0.27 Other 8,383,934.7 3.8

Other Products 152,858.2 0.07

Total 220,495,537.5 100

43 Table 19: 2008 Major informal Imports of Agriculture and Industrial Products from EAC Country Item Value(US $) % share Kenya Agricultural Products 6,126,732.72 12.85 Maize Grains 1,119,219.63 2.35 Coffee (Unprocessed) 1,026,013.35 2.15 Fish 988,366.65 2.07 Cattle 404,266.88 0.85 Peas 352,982.12 0.74 Rice 339,058.79 0.71 Potatoes (Irish) 335,126.91 0.70 Beans 326,635.34 0.69 Onions 208,654.19 0.44 Passion Fruits 149,521.17 0.31 Other 876,887.69 1.84

Industrial Products 34,442, 782.47 72.26 Clothes (New & Used) 5,345,737.58 11.22 Polythene Bags 4,620,478.75 9.69 Cooking Oil 3,355,880.82 7.04 Salt 2,213,794.49 4.64 Shoes (New & Used) 1,349,266.63 2.83 Soap (Washing) 1,077,320.32 2.26 Cooking Fat 905,437.60 1.90 Paraffin 874,816.60 1.84 Fertilizers 687,787.43 1.44 Bitenges 649,320.24 1.36 Sugar 606,132.81 1.27 Soda 489,437.78 1.03 Wheat Flour 475,131.67 1.00 Sauce Pans 455,994.06 0.96 Diesel 436,801.96 0.92 Margarine 436,411.52 0.92 Mattresses 433,585.29 0.91 Molasses 421,222.96 0.88 Glucose 383,186.80 0.80 Soap (Powder) 379,172.61 0.80 Maize Flour 376,652.27 0.79 Basins 375,222.62 0.79 Other 8,093,989.66 16.98

Ot her Products 50,977.80 0.11

44 Table19 Cont: 2008 Major informal Imports of Agriculture and Industrial Products from EAC Country Item Value(US $) %Share Rwanda Agricultural Products 990,921.47 2.08 Beans 277,046.42 0.58 Peas 158,754.94 0.33 Sorghum 117,500.37 0.25 Chicken 73,527.51 0.15 Potatoes (Irish) 53,246.85 0.11 Tobacco 52,089.82 0.11 Avocadoes 50,154.36 0.11 Carrots 49,536.62 0.10 Berries 46,405.80 0.10 Other 112,658.78 0.24 Industrial 172,317.67 0.36 Beer 61,849.97 0.13 Dry Cells 19,057.23 0.04 Local Brew 14,292.33 0.03 Soda 11,694.08 0.02 Pesticides 5,772.93 0.01 Sugar 5,455.69 0.01 Milk (Processed) 4,663.33 0.01 Mats 3,949.90 0.01 Paraffin 3,780.06 0.01 Other 41,802.15 0.09 Other Products 1,009.91 0.00 Tanzania Agricultural Products 3,878,115.80 8.14 Coffee (Unprocessed) 1,610,389.96 3.38 Beans 670,109.83 1.41 Rice 629,568.40 1.32 Maize Grains 327,149.29 0.69 Fish 249,949.94 0.52 Bananas 95,631.81 0.20 Meat 65,837.96 0.14 Other 229,478.61 0.48 Industrial Products 1,906,123.77 4.00 Coffee (Processed) 568,046.14 1.19 Cooking Oil 392,123.02 0.82 Ghee 204,420.07 0.43 Maize Flour 132,452.32 0.28 Diesel 74,402.73 0.16 Human Medicine 52,156.91 0.11 Photo Films 40,344.76 0.08 Charcoal 39,834.15 0.08 Soda 33,204.91 0.07 Petrol 30,546.41 0.06 Nails 24,425.36 0.05 Soap (Washing) 24,210.11 0.05 Cooking Fat 23,507.49 0.05 Other 266,449.39 0.56 Total Other Products 96,829.03 0.20

45 REFERENCES

Ackello-Ogutu, Chris, (1996), “Methodologies for Estimating Informal Cross- border Trade in Eastern and Southern Africa ”: A USAID SD Publication Series; Office of Sustainable Development Bureau for Africa.

Ackello-Ogutu, Chris (July 1997), “Unrecorded Cross-Border Trade between Kenya and Uganda” Implications for Food Security . SD Publication Series; Office of Sustainable Development Bureau for Africa .

Mauyo, L. W. J. R. Okalebo, et al (2007), “Legal and Institutional Constraints to Kenya-Uganda Cross-Border Bean Marketing”.

Mwaniki John, The Impact Of Informal Cross Border Trade On Regional Integration In SADC And Implications For Wealth Creation.

Uganda Bureau of Statistics and Bank of Uganda (2005, 2006 and 2007) Informal Cross-border Trade Reports.

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