Free Access | 2024-04-12

Outstanding challenges to small scale informal cross border trade in Uganda1

Authors/Editors: Brian Sserunjogi (PhD) ,  Rehema Kahunde ,  Isaac M.B. Shinyekwa (PhD) ,  Philemon Okillong ,  Hildah Namuleme

Abstract:

Despite the enormous potential of informal small-scale crossborder trade, Uganda’s earnings from this type of trade have declined over the past ten years (2013 to 2022). The decline in the value exported has been attributed to several nontariff barriers (NTBs), which include the temporary closure of the Uganda-Rwanda borders, the introduction of restrictive quotas by importing countries on certain commodities, border insecurity because of refugee influx and conflict spillover from neighbouring countries among others. Notwithstanding past Government initiatives to overcome some of the above constraints, several other NTBs persist at Uganda’s border points and continue to constrain small-scale cross-border traders. This policy note is based on a synthesis of information from the regional consultative meetings conducted by Uganda Cross Border Trader’s Cooperative Union (UCBTCU) at the different border points, a review of existing trade-related reports and an analysis of trade data. The persistent constraints include the limited awareness and domestication of the Simplified Trade Regime (STR) policy’s provisions for small-scale cross-border trade by government agencies stifle this trade. At Mpondwe (DRC) and Mirama Hills (Rwanda) border crossings, export commodities on the common list are not recognised. In contrast, at Lwakhakha and Saumu (Kenya) border points, traders still incur charges to obtain the Simplified Certificate of Origin. Also, an environment of insecurity for small-scale traders persists, especially at Elegu and Oraba border points with South Sudan. Land disputes, the absence of gazetted land for border development, slow land titling, surveying and approval of border land development plans continue to delay the development of cross-border trade-related facilities. Land-related disputes are common at the Elegu, Ishasha Madi Opei, Mirama Hills and Suam border points. We also find that the limited availability of border infrastructure that responds to the n