M23 rebels drive into Goma, experiencing little resistance from the DRC government forces
HABARI DAILY I Kampala, Uganda I The Uganda Revenue Authority (URA) has just announced the diversion of Uganda export cargo at the border posts of Katuna and Cyanika in the Democratic Republic of Congo to alternative routes. Experts have now warned that this may have adverse trade implications on Uganda, with a likely fall in export earnings.
Uganda’s exports to DR Congo have been growing over the years, rising to about $433.2m (nearly Shs2 trillion) between December 2023 and November 2024, which is a growth of 40 percent from the $258.3m (Shs955b) earned in the same period between 2019 and 2020.
In a memo dated March 3, 2025, URA advised Ugandan traders to divert goods declared for Katuna and Cyanika to alternative DRC entry points.
“It is internationally recognized that Goma (final destination to Cyanika) and Bukavu (final destination to Katuna) are no longer under the control of the central Government of DRC. The lack of control has led to significant revenue losses to goods destined for the two towns,” reads part of a memo signed by Asadu Kisitu Kigozi, URA’s commissioner of the customs department.
Kigozi, who said they were acting on the request by the Congo Government, added that in order to mitigate significant revenue losses, all goods bound for the DRC must be declared for exit through designated border posts, excluding Katuna, Bunagana, Cyanika, Ishasha River, Busanza and Kyeshero.
“The necessary systems will be configured to temporarily deactivate these border posts for transiting goods to the DRC. This directive takes immediate effect and will remain in force until the political situation improves or further instructions are given,” said Kigozi.
Likely fall in export earnings
Disruptions in the trade flow is likely to affect export earnings, economists have sounded.
Officials at the URA have however said that the diversion of goods at the DR border will not affect its revenue collections.
“We don’t charge tax on goods that are exciting this country. Our main concern was the cargo trucks that had remained at the border for weeks and could not proceed on their journey due to instability,” said Kigozi.
M23 rebels pause after overrunning Bukavu city
But it’s apparent that conflict in the DRC has brought trade to a halt with merchandise trucks destined for DRC parked either in Kampala or other the border towns.
“Being that this conflict is in Eastern DRC, which is the epicenter of Uganda’s trade hub, has brought pain to traders. Those that had running orders are adversely affected,” said Dr Musoke Nagenda, the Kacita chairman.
He said diverting the trucks from the Katuna and Cyanika posts has increased the distance Ugandan traders have to cover to make their way into DRC.
“This cost of transport is affecting our profitability. We had advised our members to hold on as we analyse the political situation in DRC. But the end in the conflict seem to be in the distant future. It’s finally good that URA has advised us to take the longer route which is safer than the shorter one which is unsafe,” said Musoke.
State authority crumbles
URA’s move followed the seizure of South Kivu provincial capital of Bukavu a few days ago after it took control of Goma, the capital of North Kivu and main city in the country’s East, late last month.
This resulted into the influx of thousands of Gongolese nationals to both Uganda and Burundi.Since the M23 rebels captured the border town of Goma, horrifying details of mass murders and mass rapes have emerged. According to the Congolese government, 3,000 people have been killed and around 700,000 displaced since the offensive began as the heavily armed militia rapidly advanced into the area.
The growing crisis prompted the East African Community (EAC), the Southern African Development Community (SADC) and the Economic Community of Central African States (ECCAS) to call for an immediate ceasefire — so far without sustained success.
Effects on trade
Uganda’s trade with the Democratic Republic of Congo (DRC) has been growing over the years, increasing by an average of 10% annually, according to figures from BOU.
Recent data shows that trade between Uganda and DRC is significant, with Uganda exporting a substantial amount of goods to DRC, making it one of Uganda’s top export markets.
For instance, in 2023, Uganda exported approximately $411 million worth of goods to DRC, with exports growing at a high annual rate over the past few years.
The main products that Uganda exported to DRC were Palm Oil ($49.9m), Cement ($32.1m), and Motorcycles and cycles ($19.2m), scrap Iron ($6.97m), Gold ($3.5m), and Refined Copper ($1.88m). Over the past 5 years the exports of Uganda to DRC have increased at an annualized rate of 18.3%, from $177m in 2018 to $411m in 2023, according to Comtrade.
Besides being an export market for Uganda’s goods and services, DRC is one Uganda’s sources of raw materials, which include unprocessed minerals such as gold, timber and African fabrics.
Non tariff barriers
Prof David Katamba, at the Makerere University Business School, said that Uganda’s top most importers, which have been the EU and DR Congo have enabled the country increase on import revenue in the recent past. “However, the EU market has been more restricted due to strict trade policies. That state of affairs means that Uganda has to revilage of regional markets such as EAC, SADC and COMESA,” he said.
He further says that war in Eastern DR Congo, which is Uganda’s gateway to the market of 100 million consumers is bad news for Uganda and is likely to constrain our local production capacity, now that the buy Uganda Build Uganda (BUBU) initiative has not taken hold.
On the other hand, Stephen Asiimwe, the PSFU Executive Director, says that the DR Congo, which is now part of the East African Community is one of Uganda’s most lucrative and virgin markets. This populous country provides Uganda with one of the most feasible keys to industrialise. “It has given our local manufacturers a chance to diversify exports beyond food commodities and informal cross border trade. The current war in DR Congo is not good for trade and is depriving us of that opportunity.”
Isa Ssekitto, the Kampala City Traders Association (KACITA) Spokesperson, said that forcing traders to pass where they are not supposed to pass in order to access a certain market is one of the non tariff barriers that we have been decampaigning. “This war, which has eaten into Uganda’s trade prospects is not a DRC war per se but a regional way which is supposed to be resolved at the EAC level. If it is not managed at that level at this material time, it will result into denting of regional trade prospects,” he said.
