28 July 2016

Beneath cross border trade in West Nile


The fortunes of the residents of West Nile grow every passing day, thanks to the trade it enjoys with her neighbours, South Sudan and Democratic Republic of Congo (DRC). The trade has contributed a lot of revenue for the three countries, however, some of this income is lost to unscrupulous law enforcers in South Sudan and DRC.


As a result, some traders have lost their lives across the border, while survivors have lost their goods in barbaric attacks.


In spite of these attacks, the cross-border trade is far from over as there is more that binds those engaged in this activity.


The effect of the cross-border trade has enabled the establishment of various businesses for local entrepreneurs. The Congolese have similarly established their businesses in the region just like Ugandans also have their businesses across the two countries. But ethnically, the sub-region also shares the languages with the two neighbouring countries. For instance, when one crosses from Arua to Aru town in DRC, one can be able to speak Lugbara, from Nebbi to Mahagi, they all speak Alur, from Moyo to South Sudan the Kukus and Madi’s speak a related language and Kakwa from Uganda and DRC speak a similar language.


The ties are stronger than the language. They also share similar culture in terms of dance, food and dressing. These are some of the conditions that have eased trade within the three countries. The women, who are at the helm of trade, trek long distances in hot and dusty conditions carrying heavy loads of goods.


Reports
A survey by Rural Initiative for Community Empowerment (RICE), an NGO operating in the sub-region indicates that Arua has about 1,394 traders-mainly women who depend on small cross-border trade with DRC.


Grace Ayikoru who frequently travels to Duruba in DRC says she once resorted to walking on foot after the truck she was travelling in had been impounded by illegal law enforcement officers in DRC.


She says these officers often subject traders to illegal taxes, harassment which sometimes forces them out of business. “At about six road blocks you have to pay otherwise they could either confiscate your goods or block you from proceeding. It is not easy and you have to be resilient otherwise you end up paying almost Shs150,000 in illegal taxes,” she added.


Setbacks
The illegal taxes and harassment go unabated due to political powerlessness and legal fragility that eases manipulation. Associations of small traders have little power or are non-existent to offer coordination and redress.


The revelations are corroborated by recent research conducted by International Alert which found that women had to hide kitenge under their clothes to get them across the border, which sometimes leads to abusive searches.


Similarly at some border points, provincial government offices collect taxes even though they have no authorisation to operate in the locations. The director RICE Pax Sakari, said: “These women need protection from the two states for their economic gain. Also we need our people to produce quality goods that can have market in the two countries.”


The Chef de Protocole D’etat of Aru territory, Corneille Aluma, said: “We had ordered officials not to mistreat Ugandans crossing for trade, but we still have some few elements who are misbehaving. Cross border trade is beneficial to all because it promotes economic growth of the two countries,” he said.


Coping mechanism
However, the traders have not run out of survival mechanisms. One common practice at all border locations is to declare a lower amount than actually paid. For instance, a trader importing goods where they have to pay $30 (about 102,000) is issued a receipt for $15 but pays $20 (about Shs68,000). This may be a win-win situation for both individuals, but the state loses out.


Despite harassment, border trade is the bedrock for the growth of Arua, Koboko, Nebbi, Moyo and Adjumani. The numbers of banks has also increased to 13. The toursim business has improved with new hotels springing up.


Trickle down effect
A Bank of Uganda report shows that Oraba, the dominant border for Uganda’s informal exports in 2009 accounted for $324.29 million. This was an increase by 8.7 per cent from the previous year. However, in 2010, there was a decline to $72.18 million of the total informal exports.




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