Kabale, Uganda – The recent directive by the Uganda Revenue Authority (URA) to temporarily halt the transit of trucks to the Democratic Republic of Congo (DRC) has sent shockwaves through the business community at the Katuna border. The suspension, aimed at mitigating revenue losses due to the conflict in the DRC, has resulted in a significant decline in customers for local businesses.
Business owners at the Katuna border have expressed concern over the drop in clientele, with many relying heavily on cross-border trade. Mr. Baden Paul Niwomujuni, owner of Shine Star Restaurant, lamented the loss of customers from the DRC, citing a dire situation that requires intervention from the East African Community.
“We no longer see a good number of customers, particularly because our main clientele was from Congo,” he said. “The situation is dire, and we need the East African Community to intervene.”
Similarly, Mr. Denis Beinamaryo, manager of Elijah Hotel, reported a sharp decline in bookings, both local and accommodation, as customers from the DRC dwindled. The drop in business has forced local establishments to reconsider their operations, with some contemplating layoffs.
Mr. Joram Bwambale, owner of Macro Hardware, highlighted the struggle for businesses that catered to clients from the DRC. “Many customers who used to frequent my hardware store have stopped coming. The ongoing conflict has created stringent measures at the border, making it incredibly challenging for businesspeople to operate,” he said.
The chairman of Katuna Cross Border Traders Association, Mr. Franko Korinako, warned that creating alternative routes for cargo trucks destined for Eastern DRC would lead to serious losses for businesses at Katuna border town.
“Alternative measures other than diverting traffic flow will boost cross-border trade at Katuna border post, which is also recovering from the Covid-19 effects and the three-year closure of the Rwandan border post of Gatuna,” Mr. Korinako said.
Meanwhile, stranded truck drivers are seeking government intervention, appealing for alternative measures to allow them to deliver goods to their original destination or return them to the source of origin.
Mr. Robert Waiswa and Mr. Charles Kamuregyeya, two long-route cargo truck drivers, claimed that they were stranded at Katuna border post following the March 3 URA guidance that stopped them from proceeding to the eastern DRC.
“I have been stranded at Katuna border post for nine days now because the transit goods from Roofings and Gentex were stopped from proceeding to Goma and Bukavu towns in the DRC,” Mr. Waiswa said.
“All my allowances that were budgeted for the Kampala-Kigali-Goma route have been exhausted, and I am now living at God’s mercy. My family members are starving,” he added.
Both Mr. Kamuregyeya and Mr. Waiswa asked the government to either allow them to proceed to their earlier planned destination or permit them to return the goods to the manufacturer.
The senior clearing agent for transit goods in Kigezi Sub-region, Mr. Julius Arineitwe, reported that several cargo trucks carrying transit goods to Goma and Bukavu are currently parked at the Katuna customs parking yard and Cyanika.
Local leaders, including Kanungu District chairperson, Mr. Sam Arineitwe Kajojo, and Kisoro District chairperson, Mr. Abel Bizimana, have called for the immediate revival of cross-border trade and humanitarian relations, citing the devastating impact of the border closure on local businesses and economies.
“While we are grateful to President Museveni, who doubles as the Commander-in-Chief of the Armed Forces in Uganda, for keeping Uganda’s international boundary safe despite the armed conflict in the Eastern Democratic Republic of Congo, we humbly appeal for an immediate bilateral understanding on reopening of the closed border posts not only for trade purposes but also for humanitarian interaction,” Mr. Bizimana said.
He added that Kisoro is yet to fully recover from the Covid-19 pandemic and the three-year closure of the Rwandan borders with Uganda that affected cross-border trade.
The closure of DRC borders with Uganda at Busanza and Bunagana has added insult to injury.
Mr. Kajojo said ever since the M23 rebel leadership gained control of several parts of the DRC, Kanungu has lost revenue because more than 120 cargo trucks that used to cross through Ishasha and Kyeshero daily were stopped.
As the situation remains uncertain, business owners and local leaders are urging regional authorities to intervene and find a solution to restore trade relationships and allow for a smoother flow of goods and customers.
The border closure has also brought back memories of the 2019 border closure between Rwanda and Uganda, which had a crippling effect on businesses along the border.
In February 2019, Rwandan President Paul Kagame closed the borders with Uganda, accusing the Kampala government of hosting Rwandan dissidents, abducting Rwandan nationals, and locking them in non-designated areas. Rwanda then issued a travel advisory to its nationals against traveling to Uganda, saying their safety was not guaranteed.
There had been cases of Rwandan nationals being arrested and deported from Uganda after being accused of espionage. The border closure took a huge toll on truck drivers and suffocated business along the border, especially in Katuna and Chanika towns.
This led to an increase in smuggling along the border, with most Rwandan nationals crossing into Uganda through porous border points to buy food. Rwandan authorities, on accusations of smuggling, shot dead at least eight people, including Ugandans and Rwandans.
The current border closure with the DRC has reignited fears of a similar economic downturn among business owners and local leaders. As the situation remains uncertain, there is a growing sense of urgency for regional authorities to intervene and find a solution to restore trade relationships and allow for a smoother flow of goods and customers.
The Ugandan government has yet to comment on the border closure, but local leaders and business owners are hopeful that a solution will be found soon. In the meantime, they are left to count the costs of the border closure, which has already had a devastating impact on their livelihoods.
