Use reopened border to revive trade with Rwanda - Minister

The State minister for Trade, Industry and Cooperatives, Mr David Bahati, has urged Ugandans to take advantage of the fully reopened Katuna border with neighbouring Rwanda to revive cross-border trade.

Mr Bahati, who is the Member of Parliament for Ndorwa West constituency where Katuna Town Council is located, was on Friday speaking to traders and local leaders at Katuna border post.

“We are so grateful to the two presidents and to the Uganda Land Forces commander, Lt Gen Muhoozi Kainerugaba, for the dialogue that resulted in the full reopening of the Rwandan borders with Uganda. Take advantage of the open borders to foster trade for the benefit of the two countries,” Mr Bahati said.

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He added that there are no government plans of compensating the traders that suffered losses during the three- year closure of the borders.

He instead said they must take advantage of the government’s Parish Development Model to benefit from the Shs100m that is to be disbursed to each parish nationwide to boost their businesses.
“This will help improve your livelihood,” he said.

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In March 2019, the Rwandan government closed its main land border with Uganda of Gatuna on allegations that Uganda was harbouring its enemies. Uganda denied the claims.

On January 31, the Rwandan government partially opened the Gatuna border for cargo trucks and for essential travellers.

On March 4, the Rwandan government announced the reopening of its land borders for passenger vehicles and allowed all passengers to travel as long as they observe the Covid-19 procedures.

Local leaders that include the NRM party chairperson for Katuna Town Council, Mr Eric Mbarara, and the LCIII chairperson, Mr Elvis Nzeirwe, however, observed that charging Shs100,000 for a Covid-19 PCR test per traveller crossing to Rwanda is very expensive for the ordinary people.

Traders that include Mr Nicholas Asiimwe and Mr Franko Korunako also said the expensive Covid tests are pushing away traders.

“It’s true that business at Katuna is slowly being revived but Covid-19 restrictions are hindering the ordinary cross border traders and the general movement of the people from either country,” Mr Korunaka, who is also the chairperson of Katuna Traders Association, said.

But Minister Bahati said health officials from the two countries would soon meet and harmonise the situation.

“Now that the borders are open, any other challenges shall be handled,” he said.

Improved trade

Last week, the Uganda Revenue Authority manager for south western region, Mr Peter Gikwiyakare, asked Ugandan traders to follow the customs regulations of Rwanda so as to avoid business frustrations.

He added that ever since the Gatuna border was reopened, the customs office at Katuna had collected about Shs280m in taxes in one month while 80 cargo trucks were crossing the border on a daily basis.

“Before the border was closed in 2019, the customs office at Katuna collected about Shs400m every month but when the border was reopened on January 31 for cargo trucks, the same office collected Shs280m in one month,” he said.

“I am happy that passenger vehicles have been allowed to go through this border because this will also increase our revenue collections,» he added.