Traders at Arubaine border market in Busia, Uganda, are facing significant challenges as close to 40 trucks loaded with oranges remain stranded due to a lack of buyers. Kenyan traders, who were the primary purchasers of the oranges, have reduced their turnout as the Kenyan Shilling depreciates against the Ugandan currency. The market, known for selling oranges from the Teso Sub-region, is witnessing a decline in business, leaving traders with unsold oranges.
Mr. Joseph Muduwa, a trader at Arubaine market, expressed his concern over the deteriorating orange business, leading to the disposal of several sacks of rotting oranges. The trucks carrying oranges from Teso Sub-region have not been offloaded due to the absence of buyers, causing losses for traders who are now grappling with the fear of losing capital obtained through loans and village saving groups.
Ms. Maureen Nafula, another trader, highlighted the impact of the currency situation, noting that they used to sell close to 20 truckloads of oranges daily, but the current scenario is much worse. The decline in the value of the Kenyan Shilling has prompted some Kenyan traders to travel directly to Teso Sub-region to buy oranges from farmers, bypassing the traditional market in Busia.
Transporters, such as Mr. Edirisa Tende, are facing delays in offloading oranges, leading to a backlog of trucks waiting for transactions to take place. The collapse of the Kenyan Shilling has made buying goods from Uganda less profitable for Kenyan traders.
Kenyan businessmen like Mr. Alfred Orenge expressed the challenges brought about by the weakened Kenyan currency, coupled with unfavorable weather conditions affecting the demand for fruits. The low profit margins, currency devaluation, and high transport costs are making cross-border trade difficult for Kenyan traders.
Mr. George William Kayemba, a trader, highlighted the economic impact on local youth who have lost jobs related to offloading, loading, re-bagging, and cart-pushing when businesses decline. He suggested that the Ugandan government should consider restricting non-nationals from dealing directly with farmers in villages to protect local businesses.
However, Mr. Godfrey Oundo Ongwabe, the national cross-border chairperson, cautioned against restricting the free movement of nationals from member states, as it would conflict with East African Community (EAC) protocols promoting free movement of goods and services. The situation reflects the complex challenges arising from economic factors and cross-border trade dynamics in the region.
