Efforts to further strengthen trade relations between Rwanda and Uganda will continue today as the two countries converge in Kampala for the 3rd annual Uganda-Rwanda business forum to discuss mechanisms on how to accelerate trade and investment in the region.

Richard Kabonero, Uganda’s High Commissioner to Rwanda told Business Times that whereas both governments enjoy good relations, strong interaction among the private sectors of both countries was still lacking.

"Therefore, the business forum aims at addressing any policy challenges that may be hindering interaction among the private sector players in the two countries,” Kabonero said.

Participants from over 300 top companies in manufacturing, education and finance are expected to attend the event, with a view of expanding their enterprises to both Rwanda and Uganda.

President Paul Kagame and Uganda’s President Yoweri Museveni are expected to grace this event.

The forum is jointly being organised by Rwanda Development Board (RDB) and the Uganda High Commission in Rwanda.

It is being held under the theme, "Accelerating regional trade and investment” and is also expected to discuss trade barriers hindering cross-border trade between the two countries including roaming charges, the new East African Community duty remission scheme and non-tariff barriers along the Northern Corridor.

The forum is expected to lay a foundation for trade promotion, investments and enhance bilateral business partnerships between the two countries, Joweila Murungi, the Rwanda Development Board’s investments promotion co-ordinator said.

"Rwanda will use this opportunity to try and leverage trade between the two countries. Our trade balance is tilted in favour of Uganda, so local traders need to use this opportunity and seek for more business partnerships,” she added.

The forum comes at a time when business between the two nations is growing rapidly despite a global economic slowdown.

Kabonero said major milestones have been registered since the inception of the business forum in 2012,, citing the opening of Crane Bank, a Ugandan-based financial institution that opened shop in Rwanda this year and many Rwandan companies that have set up businesses in Kampala.

"For instance, we want to see more Rwandan companies participating in Uganda’s oil sector by doing work like supply of cables, piping, waste management instead of leaving this to foreign companies,” he added.

Rwanda’s exports to Uganda increased by 43.8 per cent during the first half of 2014, according figures from the National Bank of Rwanda.

With regard to the informal cross-border trade, Rwanda’s total exports declined by 6.6 per cent to $52.5 million, from $56.1 million over the reporting period.

The meeting is, therefore, an opportunity for Rwanda to try and reverse the trend and close the widening trade deficit.

Rwanda’s exports to the EAC countries including Uganda were tea, hides, and skins, coffee and vegetables.

Gerald Mukubu, the Private Sector Federation acting chief executive officer, said the private sector is optimistic the forum will provide solutions to challenges that inhibit trade between Rwanda and Uganda.

"We hope to see more access to Ugandan market by Rwandan products, and elimination of both logistical and non-tariff barriers,” he said.

Renatus Mulindangabo, the chief mobiliser of the Rwanda Business Association in Uganda, said the introduction of national identity cards as travel documents among the two countries had greatly increased numbers of Rwandan traders who go to Uganda for trade.

"These annual business forums have promoted a lot of networking among us and our Ugandan counterparts. We should now think of improving our export base and not always relying on foreign companies,” he said.

Traders who participated in the inaugural business forum in 2012 had complained of this impassable road, saying they were incurring more costs by using the Gatuna border through Kabale district.