KABALE LC5 BOSS CALLS FOR COMPENSATION OF BUSINESS COMMUNITY FOR LOSSES INCURRED DURING KATUNA BORDER CLOSURE
By KWERONDA AMBROSE
KABALE
Kabale District LCV Chairman, Mr. Nelson Nshangabasheija, has urged the Ugandan government to compensate traders who lost their businesses during the closure of the Katuna-Rwanda border.
The Katuna Border was closed on February 27, 2019, following disagreements between Uganda and Rwanda. It was reopened in 2022 after discussions between the son of the President of Uganda and the President of Rwanda.
Speaking at the opening of a two-day meeting with cross-border traders, organized by the Uganda Revenue Authority, Border Traders, and Trademark Africa through the Ministry of East African Community Affairs, held at White Horse Inn Makanga in Kabale District, Nshangabasheija emphasized the need for government intervention to help traders recover from the devastating effects of the border closure.
The purpose of the two-day meeting was to devise strategies to help small-scale cross-border traders build resilience against future shocks.
Nshangabasheija pointed out that many traders had taken loans to finance their businesses, only to see them wiped out when the border was closed, leaving them with no choice but to abandon their enterprises.
Nshangabasheija expressed hope that the government would heed his call and provide the necessary support to help traders recover from the losses they suffered due to the border closure.
He emphasized the importance of cross-border trade in fostering economic cooperation between Uganda and its neighbouring countries and urged all stakeholders to work together to ensure its continued growth and success.
Some cross-border traders reported that the border closure prevented them from repaying loans they had taken from banks and other money lenders. Many traders had to leave the trading business entirely and switch to other jobs because they could no longer transport their goods to Rwanda.
Responding to the traders, Sarah Nakate, the Principal Regional Integration Officer on Economic Affairs from the Ministry of East African Community Affairs, said that the ministry is still documenting the losses suffered by business traders due to the border closure.
She promised to address the matter with the responsible agencies to seek appropriate solutions.
Participants discussed various ways to improve their operations, including diversifying their product offerings, expanding their customer base, and exploring alternative trade routes.
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