Rwanda’s formal external trade report for the third quarter of 2024 has highlighted a notable drop in exports to Burundi, a shift that coincides with a border closure between the two countries earlier this year.
Meanwhile, imports from Burundi have seen a rise, suggesting an unchanged stance in Rwanda’s trade approach to its neighbor.
Rwanda’s exports to Burundi fell sharply in the third quarter of 2024, dropping to US$3.03 million from US$5.18 million in the same quarter of 2023, a significant 41.5 per cent decrease.
While trade fluctuations are not uncommon, this drop comes at a time of heightened tensions and economic shifts between the two countries. Burundi closed its border in January last year, accusing Kigali of aiding Burundian armed opposition, which Rwanda denies.
The border issue is likely a primary factor behind this decline in exports. The border closure, which affects the free flow of goods and services, disrupts supply chains that had previously seen Rwanda export a variety of products, including foodstuffs and industrial goods, to Burundi.
The closure has created obstacles for Rwandan traders and businesses that had relied on direct access to the Burundian market. The sudden halt to cross-border trade, especially in key sectors, severely affected Rwanda’s ability to maintain its export volumes to Burundi.
Furthermore, the suspension of trade routes likely deterred many Rwandan companies from investing in goods meant for Burundi, fearing a prolonged disruption of business operations.
Rising Imports from Burundi: Rwanda’s Open Trade Policy?
On the other hand, Rwanda’s imports from Burundi have seen a noticeable rise, reaching US$3.03 million in Q3 2024, up from US$2.18 million in the same period last year. This marks a 39 per cent increase in imports, which stands in stark contrast to the drop in exports.
This rise in imports could be a result of Rwanda’s policy of allowing Burundian goods to enter the country without significant hindrances, despite the ongoing political tensions.
Unlike the export restrictions faced by Rwanda, Rwanda’s relatively open stance on imports from Burundi suggests an unchanged Rwanda trade policy towards supporting the movement of goods into the country, especially from neighboring East African states.
The Rwandan government may be ensuring that the flow of goods from Burundi continues, perhaps to maintain economic stability and uphold regional trade agreements.
This open approach could be part of Rwanda’s broader strategy to sustain trade relations within the East African Community (EAC) and avoid further political fallouts.
