Co-operatives of small traders involved in cross-border business at Gatuna on the Rwanda-Uganda border have intensified sensitisation campaigns among members and stakeholders to ensure they benefit more from the East African Community (EAC) integration. 

According to Jane Bayera, the chairperson of Gatuna Crossborder Co-operative, some traders don’t know most of the opportunities presented by EAC integration and the bigger market that comes with it. Bayera said the sensitisation will also enable the traders and stakeholders to identify and report any non-tariff barriers (NTBs) that affect their operation with a view of improving the business environment to enhance trade and investment.

"We want to increase the knowledge of members so that they are empowered to participate in cross-border trade meaningfully and competitively,” Bayera said in an interview with The New Times at Gatuna border in Gicumbi District.

Bayera added that cross-border trade plays an important role in poverty reduction "because it employs a lot of people, including youth and women”.

Bayera added that the sensitisation includes teaching the traders the procedures involved in paying taxes, documentation and other related processes.

"Our goal is to increase Rwanda’s share in cross-border business to spur growth and create more jobs for our people,” Bayera said.

Bayera noted that the use of ID cards has increased cross-border activity, saying free movement of people and goods is essential to drive growth among the EAC economies.

Albert Rugengamanzi, a cross-border trader at Gatuna, is optimistic that the One Stop Border Post being built at the border post will improve trade, arguing that when completed, it will solve problems that hinder legitimate trade.

Jackline Uwamwiza, another trader at Gatuna border, said the free movement of goods, people and services has helped improve trade among border communities and household incomes.

Statistics from National Bank of Rwanda show that Rwanda’s informal cross-border exports with neighboring countries decreased by 6.6 per cent to $100.5 million in 2015, from $107.5 million the previous year. This was attributed to 27.2 per cent drop in cross-border exports to Burundi.

The country’s informal imports rose by 14 per cent last year to $21.9 million from $19.2 million in 2014. This led to a 2.1 per cent decline in Rwanda’s informal trade balance with neighbouring countries to $78.5 million from $88.3 million the previous year.

Challenges

Most of the cross-border business people are illiterate, and have poor communication skills, especially when they are dealing with counterparts who use English or Swahili. The traders also said taxes are still high. "This coupled with unstable exchange rates have continued to affect our businesses,” they said.

business@newtimes.co.rw