By The ongoing conflict in the Democratic Republic of Congo (DRC) has dealt a major blow to Uganda’s trade, with the M23 rebels’ advances and capture of key border territories disrupting exports and causing significant financial losses for businesses.
The Uganda Revenue Authority (URA) confirmed yesterday that goods in transit to the DRC cities of Goma and Bukavu can no longer be cleared through the Uganda-Rwanda border points of Kyanika and Katuna, as these areas are no longer under the control of the Congolese government.
URA spokesperson Mr. Robert Kalumba stated that Uganda would not permit the transit of goods through border points that are now controlled by the rebels. While acknowledging the financial toll, he did not disclose exact revenue losses.
“Uganda is losing revenue and trade due to the ongoing situation, but I cannot share specific figures at this time,” Mr. Kalumba said.
The DRC is Uganda’s largest regional trading partner, with exports totaling Shs2 trillion in 2023. However, the current border blockade by the M23 rebels has severely impacted cross-border trade, leaving traders and transporters stranded.
A major infrastructure project aimed at enhancing trade—the multi-billion-shilling road connecting Uganda’s Bunagana border to Goma City—now hangs in uncertainty following the rebels’ capture of key border points. The M23 first seized Bunagana on the DRC side, prompting Uganda to halt all official goods transit. The group then advanced northward, capturing Ishasha, Busanza, and Kyeshero, further complicating trade operations.
Ugandan traders who rely on the DRC market have been forced to reroute their goods through Rwanda, making exports significantly more expensive. Kenyan exporters have also been affected, as customs clearance for goods destined for the DRC has been suspended at rebel-controlled border posts.
At the Busia border, several trucks carrying Kenyan goods bound for the DRC remain stranded following the suspension of business at the Katuna and Cyanika borders. Among the affected goods are fish, fuel, motor vehicle spare parts, and plastics.
Mr. Michael Amodoi, a clearing agent at Busia, reported being stuck with four truckloads of fish, each weighing 100 tonnes. “Three of my trucks are still in Kenya, while another that was cleared on Tuesday has been unable to cross into the DRC due to the directive,” he said.
A URA memo confirmed the worsening situation, stating: “It is now internationally recognized that Goma City, a final destination for Cyanika border, and Bukavu Town, a final destination for Katuna, are no longer under the control of the central government of DRC.”
Kenyan fish exporter Mr. Shaban Okumu expressed frustration over the disruption. “I had already loaded 20 tonnes of fish for export to the DRC when the diversion was ordered. Now, we have no alternative border for clearing our goods,” he lamented.
Congolese trader Mr. Guillian Paskali said the alternative routes, such as the Mirama Hills border, are too long, making trade unsustainable. “Mirama Hills adds 200km to our journey, increasing transport costs significantly,” he noted. Previously, Mr. Paskali paid Shs16 million to hire a truck from Busia to Bukavu, but he now fears costs will skyrocket due to the additional distance.
Despite ongoing ceasefire negotiations under the EAC-SADC framework, the M23 rebels continue expanding their control, recently advancing into Lubero and Butembo townships in North Kivu. In response, Uganda has deployed more troops in Bunia and Lubero to safeguard its economic interests in the DRC.
Last week, President Yoweri Museveni announced that Uganda had secured permission from the Congolese government to deploy troops in Lubero and Bunia to combat the Allied Democratic Forces (ADF) rebels and ensure the construction of the Kasindi-Beni-Butembo Road proceeds as planned.
Since January, the M23 rebels have made significant territorial gains, escalating tensions between Uganda and the DRC. By January 30, the group had captured all of Goma and, by February 1, advanced into Bukavu, solidifying control over critical trade routes.
With no immediate resolution in sight, Ugandan and Kenyan traders, as well as the regional economy, continue to bear the brunt of the instability, raising concerns about long-term economic disruptions if the conflict persists.
