Ugandan exports to Rwanda in the first 3 months of 2019 have reduced by 34.31% amidst a diplomatic row that has seen tempers flare, culminating in border closures by Rwanda.
According to statistics from Uganda Revenue Authority (URA) and Bank of Uganda (BoU), Uganda in Q1 2019 exported USD34.12m worth of goods, compared to USD51.94m in Q4 2018 and USD60.66m in Q3 2018.
USD34.12m is the lowest quarterly earnings in 9 years, since Q1, 2010 when Uganda earned USD32.82m.
Rwanda accuses Uganda of supporting her political enemies, an accusation that Uganda has flatly denied.
Rwanda closed all its common border posts with Uganda including; Katuna, Kagitumba, Mirama Hills and Cyanika towards the end of February accusing Uganda of harbouring Rwandan dissidents.
The government of Rwanda is also said to have ordered its citizens not to travel to Uganda and is also said to have ordered its nationals doing business on especially the Ugandan side of the boarder to pack up and go home.
2019 had started well with Uganda exporting USD16.96m in January and USD14.51m in February. But in March 2019, there was an 81.79% decline as exports fell to a mere USD2.64m.
This is the lowest monthly export earnings in 13 years, since July 2006, when export earnings stood at USD2.5m!
Uganda mainly exports food items, cement, steel, personal care products, beverages and animal products.
In April, Rwanda blocked a consignment of Hima Cement, over allegedly breaching standards, but those in the know say, this is part of the economic blockade that Rwanda is serving to Uganda.
However Ugandan imports from Rwanda appear unimpeded. In fact Uganda imported goods worth USD3.9m from Rwanda in Q1 2019- which is 42.99% more than the USD2.73m in Q4 2018.
Uganda enjoys a trade surplus over Rwanda.
Rwanda has been Uganda’s No.3 biggest source of export earnings in Africa, after Kenya (USD580.29m) and South Sudan (USD355.91m). In 2018, Uganda earned USD212.14 m in exports to Rwanda.