The business community at the Uganda–Rwanda Cyanika border in Cyanika town council, Kisoro District is reeling from sharp currency fluctuations, as the Rwandan Franc continues to weaken against the Ugandan Shilling.
Since 2023, the Franc has steadily depreciated from over 3.0 Ugandan Shillings to about 2.48 shillings as of August 13, 2025, a drop of nearly 25–30% over the long term. In the past six months alone, the rate slid from around 2.656 shillings, marking a further 7.14% fall.
Economists attribute the slump to inflation differentials, trade imbalances, divergent monetary policies, and regional instability. Short-term volatility has been fueled by shifting market sentiment and geopolitical tensions, hitting cross-border trade hard.
Local money changers, including Bazamenya Charles and Ntegeye William, say business has drastically declined. They say that Rwandan traders no longer import goods from Uganda.
   CUE IN MONEY CHANGERS…..ON THE MATTER……RR//
Tibarikure Charles, LC1 Chairperson of Gahuru Cell in Rukoro Ward, Chanika Town Council, say that they used to benefit a lot from cross-border trade, but that is no longer the case.
CUE IN TIBARIKURE….ON THE SITUATION…..RR//
Chanika Town Council Mayor Erasmus Sanyu partly blamed the crisis on the ongoing conflict in the Democratic Republic of Congo, which has disrupted trade routes. He urged the Ugandan government to step in and stabilize trade.
CUE IN SANYU….ON THE CALL…..RR//
Stakeholders are now calling for joint Uganda–Rwanda interventions, ranging from tax reforms to new trade agreements, to revive commerce and protect livelihoods.
About the Cyanika Border:
Cyanika border post lies in southwestern Uganda’s Kisoro District, linking to Rwanda’s Musanze (Ruhengeri) in the north. The post is managed by Uganda Revenue Authority (URA) on the Ugandan side and Rwanda Revenue Authority (RRA) on the Rwandan side, with both agencies working to ease trade and tourism.
The border is equipped with the Migration Information and Data Analysis System (MIDAS) for efficient processing of travelers, supported by trained immigration officials. The East African Tourist Visa, valid for 90 days, further facilitates travel across Uganda, Rwanda, and Kenya.
Cyanika is a key gateway to attractions like Mgahinga Gorilla National Park and Volcanoes National Park, accessible by bus services such as Jaguar Executive and Trinity Express, as well as private hire vehicles. Before crossing, travelers are advised to exchange currency for smoother transactions.
The Source Reports.
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