The economic implication of current import-export structure
The above import-export structure could have several economic implications.
Unfavourable balance of Payments deficits are likely to be experienced. This is because of a high expenditure on expensive imports.
Unfavourable terms of trade. This is because the quality and prices of Uganda's exports are lower than those of her imports.
Uganda should be experiencing a limited variety of exports, she only exports few products abroad.
There is a high degree of dependence of the Ugandan economy on external resources.
The importation of manpower into Uganda, implies that the country experience a severe manpower gap.
There is need for Uganda to adopt an export promotion industrial development strategy, so as to encourage exports to earn foreign exchange.
Today, Uganda enjoys a relatively stable political atmosphere and because of this, there is need to improve on the quality and quantity of goods and service as well as food products.
An import substitution industrial development strategy is highly recommended to encourage the production of goods at home to replace those formerly imported.
Diversification is required in both the agricultural and industrial sectors c Uganda in a bid to increase the levels and variety of output.
Capital flight/profit repatriation is likely, due to Uganda's dependence c foreign manpower/personnel.
The structure of Uganda's exports reveals Uganda's dependence nature on agricultural exports, which are prone to price fluctuations. This leads to fluctuations in government revenue that consequently affect the planning by the government.
Deterioration in standards of living are likely among the poor as the country unable to obtain sufficient revenue from export commodities and yet a lot c foreign exchange is constantly incurred on imports.
Today, the export of non traditional export crop varieties which is being encouraged, could lead to a new hope of increased incomes.
The components of Uganda's external trade could retard industrialization development programmes.