Produce dealers affected by Rwanda border closure

By Stephen Nuwagira

AGRI-BUSINESS    TRADE  

IBANDA - The closure of the Rwanda border in February continues to impact businesses in Uganda that depended on its market. 

According to the Ibanda Produce Dealers Association, produce trade has been largely subdued ever since Rwanda closed its borders on February 28, barring its citizens from crossing into Uganda. 

Godfrey Begumisa, the chairperson of the Ibanda Produce Dealers Association, said dealers were reluctant to buy large volumes of produce because they are not assured of the market compared to the period before the border closure.

This has affected produce trade and the earnings of farmers because of low prices.

"We pray the relations between Uganda and Rwanda normalizes soon because our members are going through hard times. Presently, stockists are largely handling small volumes, which has affected earning and led to some job cuts for casuals," he said in an interview. 

Begumisa added that the other markets in the EAC region have challenges, explaining the many logistics issues and expenses involved to access Kenya, and restrictions in the Tanzania market. 

Ibanda is a big producer of maize, beans, cassava, groundnuts, and sorghum, among others. Rwanda was, before the border closure, a leading destination for the district's produce.  

Prices range-bound

Meanwhile, Begumisa said most of the produce prices have been range-bound; many have dropped and there are a few price gains, mainly for maize. 

The farm-gate price of maize is sh1,000, increasing from sh800 and sh850 per kilogramme, while it goes for sh1,200 at produce stores in Ibanda town and Ishongororo. 

Mixed colour beans are at sh1,200 a kilo and dealers sell at sh1500, a drop from sh1,900 previously, and beans of Nambale variety cost sh2,500 each kilogramme in stores but the farm-gate price is sh2,000. 

Groundnuts go for sh5,000 from farmers and are at sh5,100 a kilogramme from produce dealers, a big increase from sh2,950 a kilo in the second quarter of the year. That of sorghum is at sh1,000, when buying from farmers, and sh1,200 a kilo at produce stores.

Workers packaging dry cassava in sacks at a store in Ibanda town. Photo by Stephen Nuwagira

 
The cost of millet has largely been unchanged over past 10 months with the farm-gate price at sh1,500 a kilo while dealers sell at between sh1,600 and sh1,700 depending on one's bargaining power said the produce dealers' group chair Begumisa.     

Normalising relations

In August, presidents Yoweri Museveni and Paul Kagame signed a memorandum of understanding in Angola aimed at restoring cross-border activities.

During the signing of the deal, both leaders agreed, "to resume as soon as possible cross-border activities between both countries, including the movement of goods and persons, for the development and improvement of the lives of their population."

Uganda is expected to host a meeting of officials from the two countries this month as efforts geared at normalization of relations continue, following an earlier one in Kigali.