Uganda is one of South Africa’s smaller trading partners in Africa. Tire World Exports participates in this massive industry, one that sees roughly R2 billion worth of goods being traded between the two countries, with a surplus in favour of South Africa. Keep reading the blog as we discuss how, in 2019, the South African government sent a special economic mission to the country.
A Word from the Trade & Industry Minister
In preparation for the mission, Minister of Trade and Industry, Rob Davies, said:
“Uganda enjoys a unique location at the heart of sub-Saharan Africa, which makes it accessible to the Central and East African markets, including the Common Market for Eastern and Southern Africa. This makes the country a viable market for business because it has the potential to be a transportation, logistics and transit hub for regional trade and investment.”
The State of Tire Trade in Uganda
When it comes to the tire industry, the numbers reflect those that we see on the macroeconomic level. As this brief report shows, the trade between South Africa’s and Uganda’s tire industries is a small niche – and one that is in decline.
According to Trading Economics, Uganda’s imports of South African-made tires reached its height in 2014, when they were valued at just over US$2 million. Since then, figures have declined rapidly. In 2018, the last year recording in Trading Economics’ report, imports amounted to only US$500,000.
What is the cause of this decline? Once again, it appears that the lower prices of Chinese suppliers have caused a decrease in demand for South African products. In 2018, Uganda imported US$33 million’s worth of tires from the far eastern power.
The shrinking niche that is the Ugandan market for South African tires constitutes a small elite of motorists and transport companies that desire and can afford better quality. As far as the mass market is concerned in the East African country, however, cheaper Chinese tires seem to be sufficient to meet the needs of most Ugandans.
Ask Tire World Exports Anything about African Tire Import & Exports
At, Tire World Exports specialises in the export of tires from top South African brands to markets in other countries on the continent. For more information, contact us.