For most border posts where goods and services are traded, Shs500 million would look like a drop in the ocean but Bunagana only facilitates transit with very little trade activity involved.
The Uganda Revenue Authority (URA) has revealed that Uganda loses over Shs500 million annually due to ongoing conflict at the Bunagana border between Uganda and the Democratic Republic of Congo.
The fighting between the Armed Forces of the Democratic Republic of Congo (FARDC) and M23 rebels has severely disrupted business operations in the area.
Since June 2022, when M23 rebels captured the Congolese side of the Bunagana border, trade has come to a near standstill. According to Asadu Kisintu Kigozi, commissioner of customs at the URA,
"The border of Bunagana has been closed since June 2022," Kigozi said.
"Before the outbreak of the war, Uganda collected over Shs45 million in revenue from this border. Since the conflict began, Uganda has lost over Shs500 million annually, which is a significant loss for the country's economy."
For most border posts where goods and services are traded, Shs500 million would look like a drop in the ocean but Bunagana only facilitates transit with very little trade activity involved.
A recent visit to the Bunagana border by our reporter revealed that what was once a bustling parking yard for trucks is now idle, and the immigration offices are non-functional.
No trucks were observed crossing the border; instead, small quantities of goods were being transported by bicycle.
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Kisintu further noted that the conflict has also affected businesses around the border.
"The impact of the war extends beyond Bunagana. It has also affected the Kanungu side, where the Ishasha border remains closed, further disrupting business activities," he added.
"We hope for a return to normalcy so that Ugandans can resume their businesses, and the government can start collecting taxes again."
Isamail Ndayambanje, Mayor of Bunagana Town Council, highlighted the local economic impact, stating that before the conflict, the town council collected Shs 150 million in local revenue.
"Now, it is challenging to collect even a third of that amount," Ndayambanje said.
"Our business people here in Bunagana are struggling to repay loans they had taken before the war."
The M23 rebels have maintained control of the Bunagana border since June 2022, halting trade and operations on the Congolese side.
The conflict has forced trucks heading to DR Congo to use the Chanika border, which connects Uganda and Rwanda, before continuing to Goma, the capital Kinshasa.
As the situation remains unresolved, the economic toll on Uganda continues to mount, affecting both local communities and national revenue.
