The ongoing conflict involving the M23 rebel group in the Democratic Republic of Congo (DRC) is significantly disrupting trade within the East African Community (EAC), the strongest trading community on the continent.
Various sources within the wider region report that the situation in the Lake Kivu region on the DRC’s border with Rwanda has led to border closures, diversion of trade routes and confusing customs decisions, complicating the flow of goods across the region.
The latter, in particular, could be impacting the African Continental Free Trade Area as much of its progress is contingent on the EAC, widely recognised for its independent constitution and progressive customs procedures.
According to The East African, one of the most reputable newspapers in the region, the conflict has resulted in the closure of several border crossings, including those between Uganda and the DRC.
The Cyanika Border Post, crucial for trade between Uganda and the DRC, is one of the crossings that has been affected. Goods destined for Lake Kivu’s biggest city, Goma, are now being diverted through Rwanda, increasing transit times and costs.
Uganda has also stopped clearing goods destined for Bukavu via the Katuna border and those for Goma via Cyanika.
This has led to a buildup of cargo at the borders and in warehouses in Uganda. The alternative route through Rwanda adds significant distance and expense, as trucks must travel through Kigali before reaching Goma.
The conflict has severely impacted local economies, particularly in areas controlled by M23. Banks have closed and there is a liquidity crisis, further complicating trade operations.
The Congolese government initially considered imposing import duties on goods from M23-controlled areas but later rescinded this decision following a public backlash.
This confusion highlights the challenges faced by traders navigating the complex and unpredictable customs environment.
