Uganda

Uganda benefits from the EU's "Everything but Arms" (EBA) scheme for least developed countries. According to the World Bank classification, Uganda is considered a low-income economy with a per-capita income of $ 930 in 2022. Preferential imports from Uganda amounted to about € 152 million in 2022.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Uganda flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

47,25 M

Population

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Presidential Republic

Government

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4.60%

GDP Growth

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4.70%

Inflation

money

$ 45,57 B

GDP

34 -

Freedomhouse index

4 -

ITUC Global Rights Index

35.8 ^

Environmental Performance Index

Facts about Uganda's economy

Coffee and Bananas

Uganda belongs to the world’s top ten coffee producers and exporters with an annual production of about 288,000 metric tons. Uganda also produces a significant share of the world’s banana supply. The production amounts to about nine million tons annually.

Export Products

Uganda's main export articles include coffee, tea and cocoa beans, fish products, sesame and sunflower seeds, vanilla, flowers, and cotton.

Trade Partners

Uganda's most important trading partners are China, the EU and the UAE, which together account for about 37% of total trade. Most imports originate from China, the UAE, and India. The EU is the most important market for Ugandan products, followed by Kenya and Congo (Democratic Rep).

Economic Structure

Agriculture is the mainstay of Uganda's economy, it provides the livelihood for the majority of Uganda’s, contributes the largest share to the GDP and contributed to reducing poverty in the country. The most important cash crops are cotton and coffee but also tea and flowers. The industrial sector remains small and reliant on imports. Activities concentrate on processing agricultural products (e.g. tea, tobacco, sugar, coffee, and cotton), beer brewing, construction materials, fertilizers, metals etc.

Usage of EBA Preferences

Currently about 20% of overall EU imports from Uganda make use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, is very high and currently stands at 94.8%.

Trade with the EU

Total trade with the EU amounted to € 1,462 million in 2022. With a share of 11.1%, the EU is Uganda's second most important trading partner. About 20% of Ugandan products go to the European market making it the first most important export destination.

Uganda and the EU (2022)

Imports from Uganda by product section

Imports from Uganda over time (in € m)

UGANDA AND THE EU’s GSP

Economic Impact

21%

About 21% of Uganda's exports to the EU market are eligible for EBA preferences.

95%

Uganda currently has a really high preference utilisation rate of 95%.

Preference utilisation and export diversification

Uganda's imports to the EU

Preference Utilisation vs. total eligible imports

Following the reform of the GSP, Uganda was able to take significantly more advantage of EBA preferences. Since 2015, the preference utilisation rate stood consistently above 90%. Still, only 20% of EU imports from Uganda are traded using EBA preferences. Some of the main import products, including for example coffee and cotton, already benefit from zero most favoured nation duties.

The largest product sections under EBA

The largest product sections traded under the EBA are plants, fish products, agricultural products, spices, and tobacco. These product sections make considerable use of the duty-free access to the EU market. Preference utilisation could be further increased for machinery imports.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the EBA, Uganda is not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Nonetheless, Uganda maintains a high level of ratification and has ratified all 15 core international conventions on human and labour rights. This includes 7 UN human rights conventions and 8 ILO conventions on labour standards. Additionally, Uganda has ratified 8 conventions on environmental protection and 4 conventions on good governance aspects.

Core international conventions on human rights and labour standards

Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Uganda Bilateral Development Assistance

DG INTPA

Access all info about Uganda relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/uganda_en

Opportunities in Uganda

  • Stable political and economic environment with a comparatively large domestic market
  • Uganda's capital Kampala is an important regional hub in East Africa
  • Large oil reserves which can be further exploited. The government currently invests in the necessary infrastructure
  • Uganda has a favourable climate and fertile soils to enhance agricultural production. Currently only a small share of all arable land is cultivated

Contact points