Uganda’s base oil and lubricant imports fell in March to a five-month low, as the country’s economic growth faced growing headwinds from rising input costs.
Base oil and lube imports combined fell back to 4,860 kilolitres (3,770t) in March, down from 5,780kl the previous month, provisional customs data showed.
Imports in March also fell from year-earlier levels for the first time in five months. The 1pc contraction followed a 30pc rebound in imports during the four months to February.
The slowdown in imports in March coincided with growing signs of pressure on Uganda’s earlier economic growth target of at least 6pc for this year.
The country’s central bank lowered its growth target for the year by 0.5 percentage points in its April monetary report.
Business confidence had got a boost after the full reopening of the economy following Covid-related restrictions. But the latest purchasing managers’ index survey showed a drop in confidence in March.
Lubricant supplies continued to account for most of the total volume imported in March. The share of base oil imports was steady at around 25pc of the total. The UAE accounted for most of that volume.
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