The Katuna border market, situated in Kabale District, southwestern Uganda, serves as a pivotal hub for cross-border trade between Uganda and Rwanda. Strategically located along the Northern Corridor, it facilitates the movement of goods and people between the two nations.

Development and Infrastructure:

In August 2015, the Ugandan government launched the construction of a UGX 28 billion border market at Kiruruma, near the Katuna border. This initiative, supported by the Common Market for Eastern and Southern Africa (COMESA) and funded by the European Union, aims to enhance Ugandas competitiveness in regional markets, promote value addition, and create employment opportunities, especially for youth and women. The market is planned to occupy 138 acres and will feature modern facilities, including parking spaces and forex bureaus. Its primary focus is on agricultural products, aiming to ease congestion at the Katuna border post and boost trade activities. 

Trade Dynamics:

The market primarily caters to local traders dealing in commodities sourced within Uganda. However, cross-border activities between Uganda and Rwanda have been limited, attributed to various factors, including past border closures and regional conflicts. 

Challenges:

Recent conflicts in the Democratic Republic of Congo (DRC) have adversely affected businesses at the Katuna border. A directive by the Uganda Revenue Authority (URA) to temporarily halt the transit of trucks to the DRC led to a significant decline in customers, impacting local establishments that relied heavily on cross-border trade. 

Regional Integration Efforts:

Despite challenges, efforts are underway to revitalize trade at the Katuna border. The re-opening of the Gatuna-Katuna border post is expected to spark social and economic activities, benefiting informal cross-border traders and promoting regional integration within the East African Community (EAC). 

The Katuna border market holds significant potential for enhancing trade between Uganda and its neighbors. Continued investment in infrastructure and regional cooperation are essential to fully realize its benefits.