Uganda-Rwanda pact will not resolve political crisis

Significance

Relations had been openly hostile -- and the border between the two countries closed -- since late February until Presidents Paul Kagame and Yoweri Museveni agreed on August 21 to end the feud.

Impacts

• The feud will accelerate ongoing shifts in regional trade dynamics, as both countries diversify away from bilateral trade.
• Bilateral competition will undermine efforts at deeper regional integration through the East African Community.
• The Democratic Republic of the Congo (DRC) could suffer spillover effects, as both countries focus on armed opposition groups based there.