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Business Edge | Rwanda – Uganda Border Trade Reopens

https://youtube.com/watch?v=mtLXQGi9Kq4

It has taken three years but finally, the border closure between Rwanda and Uganda has been lifted and trade can commence the two East African countries. On Tuesday’s edition of Business Edge, Tolulope Adeleru-Balogun speaks with Professor X N Iraki from the Faculty of Business and Management Science, the University of Nairobi for insight into the conflict and the restart of the border trade.

Remote And Immediate Causes

Rwanda and Uganda are both landlocked and share a border one hundred and seventy kilometres long, with a crossing at Gatuna and Katuna respectively. The decades-old resentment boiled over in February 2019 when Rwanda closed its border with Uganda and stopped all trade with the country, which each side accusing the other of harbouring rebels, mistreatment of its nationals and espionage. Professor Iraki shares his insight into the conflict thus: “I have been to both countries and it is surprising that the border could be closed for that long…”

Whilst it wasn’t an economic war, the action has been economic in nature; despite the fact that President Paul Kagame of Rwanda and President Yoweri Museveni of Uganda have been familiar with each other for decades and observers had been hopeful that the dispute would have been diplomatically resolved.

Impact Of The Closure On Regional Economy

Uganda appears to have been at the losing end of this conflict as its export trade which stood at $200 million before the conflict dwindled to as low as $2 million. Although Rwanda seemed to hold its own, this border closure led to a hike in the price of dried food in the country. Furthermore, this conflict did not affect only these two countries as the border in question is also a passageway for the region. The impact is felt by many other countries. Professor Iraki insists it’s disturbing for the closure to have persisted for three years, given that both countries are members of the East African Community. “Both countries are losers. If you close the borders, you stop trade; period. The border doesn’t just serve this two; it serves DRC Congo, it serves Kenya. It’s not just about these two countries, it’s about the economy of East Africa.”

Hope For Permanent Peace

The border reopening has been met with commendation and relief, but that doesn’t mean that all is forgiven or forgotten- especially by Rwanda as officials say not all the issues raised by Kigali has been addressed by Kampala, but acknowledge that it’s a step in the process of resolving all outstanding disputes. Professor Iraki says it is important for countries to continue to trade with each other and resolve their disputes in ways that do not affect the well being of the people. “Remember African countries have been dealing with COVID, and when there is a crisis like COVID, you benefit more when you trade with your neighbour.

Watch the full conversation Business Edge is above.

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