Abstract

Cross-border trade in Rwanda is vital for improving livelihoods and fostering entrepreneurship. However, traders face significant challenges that hinder sustainable growth. Despite regional cooperation efforts, inefficiencies and policy distortions persist. This study aims to assess the socio-economic impact of cross-border trade in Rwanda. It explores its implications for sustainable development in the East African Community (EAC). The paper investigates how trade affects traders' livelihoods and evaluates existing cooperation mechanisms. Key challenges are also assessed. Using a cross-sectional design, 95 traders were surveyed. Data was collected through interviews, surveys, and document reviews. Descriptive statistics and content analysis were employed, adhering to ethical standards. Findings show that cross-border trade improves livelihoods and reduces poverty. It increases income, healthcare, education and living standards. Regional cooperation mechanisms, such as the Customs Union, have facilitated trade.  However, inefficiencies in service delivery and operational risks remain. The study concludes that cross-border trade is crucial for improving livelihoods. The importance of regional cooperation and policy reforms is emphasized. Recommendations include modernizing trade processes, improving infrastructure and harmonizing policies.

Keywords

Cross-Border Trade, Traders' Livelihoods, Policy, Inclusive Entrepreneurship, Rwanda and EAC