Revenue collection has grown up to 42% as business at the Katuna border steadily improved, ever since Rwanda lifted travel restrictions on Rwandan Nationals crossing into Uganda.
Katuna border businesses had been stagnant for about four years, following a closer border with Uganda on February 27, 2019. At the time, Rwandan President Paul Kagame accused Uganda of spying on Rwanda, abducting Rwandan citizens, locking them in none designated areas, as well as hosting and facilitating dissidents.
Rwanda then issued an advisory to its nationals against travelling to Uganda, saying their safety was not guaranteed.
After close to three years of no business at the border, Rwanda reopened on January 31, 2022, following the intervention of Gen. Muhoozi Kainerugaba in the reopening of the Rwanda-Uganda Border. Since then, some of the businesses that had collapsed at the border started operating.
However, whereas the Katuna Border was reopened, Rwandan Nationals crossing to Uganda were asked to each pay Ugx 5000, which was meant for a Covid PCR Test, which was a challenge to many of them. In addition, Rwandan nationals, especially small-scale businessmen, were stopped from buying food items and other essentials from Ugandan markets.
However, in June last year, Rwandan Nationals were allowed to cross freely into Uganda to trade in Ugandan Markets.
Our Reporter visited the Katuna Border, where she noticed the free movement of Rwandan Nationals crossing to Uganda, freely to shop from Ugandan Markets, which has seen an improvement in revenue on the Ugandan side.
In a phone interview, Edrine.M.Mutebi, the acting assistant commissioner in charge of public and corporate affairs at Uganda Revenue Authority, said that ever since the closer of the Katuna Border in February 2019 and reopening in January 2022, there has been improvement in revenue collection.
He highlighted that by the time the border closed, revenue collection was above Shs 1 billion, adding that when the border was reopened in 2022, über Shs 2.7 billion was collected, which he said indicated that there was revenue that was lost because of the closer.
He further added that by last year they managed to raise shs3.8 billion, which represented an increment of 42 %, noting that it’s an indication of how strategic the border post is, especially to countries that use it.
Mutebi said the figures also indicate the impact of close cooperation between the two countries in terms of trade, adding that the future is bright.
Christmas Dezi Byarugaba, the town clerk for Katuna town council, says that they used to collect little in the form of taxes following the closure of the border, adding that ever since the Rwandan Nationals were allowed to freely do trade in Ugandan markets, the local revenue has risen.
He added that they are convinced that by the end of this year, they will collect more than they used to.
Byarugaba further highlighted that seeing Rwandan Nationals buying much of the Posho from the Ugandan Markets is a great achievement since Posho is one of the Commodities sold in the Ugandan Markets.
According to Ugandan traders, Ainemani Bosco and Karagwa Julius, trade has greatly improved since Rwandan nationals were allowed to come to Ugandan markets.
The traders are hopeful that, in case the situation remains like this, business will continue to boom.