Trade between Uganda and Rwanda has tripled, according to Uganda Export Board (UEB). Statistics from UEB indicate that Rwandans spent $7.3m in 2005. The figure rose to $25m in 2006.

Rwandans spent $1.6 m on 7,697 tonnes of maize, $ 1.4 m on root crops, beans $1.1 m, $0.9 m on bananas while $ 0.3 million was spent on ground nuts.

"We are aware so many Ugandans are doing business in Rwanda and there is a huge market for our products," Nelson Gagawala Wabuzi, the Ugandan Minister of State for Trade, Tourism and Industry said.

Gagawala attributed the growth in Uganda exports to Rwanda’s joining the East African Community (EAC).

He also said that Uganda’s economy is 100 percent liberalised which has enhanced trade with neighbouring countries.

The Minister also warned that trade between the two countries is still largely informal but that the East African governments are trying to help the people advance in trade and make it commercial.The Minister was also optimistic that the move will help the region participate and compete in world economics.

He explained that trade in Uganda was being modernised through a government programme locally referred to as as ‘Bonna Bagagawale’. This is literally translated to mean ‘prosperity for all’.

It is hoped that with the funding, every household will earn a daily income and benefit from group economic activities. In the 2006/07 Ugandan Budget, Finance Minister, Dr Ezra Suruma announced that the government had allocated Ush78 billion ($42 million) under Bonna Bagagawale, anti-poverty strategy.

The move is partly to transform farming from subsistent to commercial. The region is also easing trade and movement of services through establishing a Common Market, a Customs Union and also a Common External Tariff. Goods from outside the EAC will attract a uniform tax.

"We are also reducing cross-boarder barriers to promote free movement of goods. All this will improve and boost trade in the region," Gagawala added.

A study commissioned by Rwanda Revenue Authority (RRA) and the Ministry of Infrastructure shows that, Kenya is still Rwanda’s leading business partner.

The research also shows that between 2005 and 2006, imports from the EAC total Frw64 million.

Kenya was the main source of the imports, supplying about Frw31 million worth of goods. Uganda was the second important supplier with Frw28 million. Kenya and Uganda accounted for a combined share of 93 per cent of all imports from the EAC.

Tanzania supplied imports worth about Frw6 million or 6.9 per cent of total imports, the remainder being from Burundi.

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