This archive report was first published on 15 October 2019.
Since August, the closure of the border between Rwanda and Uganda has left many local manufacturers struggling to access essential materials.
Take Nshimiyumuremyi Cephas, for example. In 2013, he won a Rwf3 million ($3,200) prize in a UNDP-sponsored youth Connekt competition and formed a company, Uburanga, to manufacture beauty products in Musanze district.
He also took a loan in 2014 to boost his business, and five years later, his company had gained stability, selling hair food, shampoo, and body lotions made from natural plants.
However, with the border closure, Nshimiyumuremyi's business has been severely impacted. He has Rwf8 million ($8,630) worth of packaging materials stuck in Uganda.
“Since the border with Uganda was closed eight months ago, my business has been bleeding,” Nshimiyumuremyi said.
He explained that he used to buy packaging materials in Kampala because they were cheaper and transport costs were reasonable. However, with the border closure, he has been forced to look elsewhere, but the increased costs have made it untenable.
“It took a day to get supplies from Uganda, now it takes us a week to get them from Tanzania, in addition to transport costs being high, especially for a small company like ours that buys few materials,” he said.
Nshimiyumuremyi fears that if his products are off the shelves for a long time, buyers will move to other brands.
He is not alone in his struggles. Nteziryayo Theogene, a herbal personal care products company owner in Kamonyi district, also depends on packaging materials and chemicals from Uganda.
“I used to buy plastic packaging bottles from Uganda to pack mouth wash, toothpaste and other personal care products, but my business is now dying a slow death,” he said.
Large-scale manufacturers can afford to import their packaging materials from China in bulk, but small businesses like Nshimiyumuremyi's are trapped between a rock and a hard place.
