As guns went silent after the December 15, 2013, tensions between factions loyal to President Salva Kiir, of the Dinka ethnic group, and those aligned to Vice President, Riek Machar, of the Nuer ethnic group, traders in EAC and beyond had hoped that the return of peace to African’s youngest nation meant more trade and business activity could now take off in South Sudan, it being a leading market for EAC exports.
However, to the dismay of many business men and women, the zest to harness long term business exploits from the South Sudan market has been cut short as the streets of Juba, the capital city of South Sudan, exploded into fighting last week, rending this vibrant market unproductive again.  This has therefore affected many traders, manufacturers and exporters within East Africa and beyond.
Uganda is already feeling the pinch of the civil war in South Sudan, Minister of Trade, Industry and Cooperatives in Uganda, Amelia Kyambadde said the war has affected Uganda’s trade balance sheet with South Sudan.
Kyambadde said South Sudan had become Uganda’s leading export destination in 2008 following the signing of the Comprehensive Peace Agreement (CPA) of 2005. She said total exports (formal + informal) had peaked at $ 1.18 bn in 2008.
However, the fighting that broke out in December 2013 resulting to the then subsequent a civil war in South Sudan, caused a steady decrease in Uganda’s exports from $ 414m in 2013, to USD$ 385m in 2014 and USD$ 353m in 2015.
“As you are all aware, there has been renewed fighting in Juba, the capital of South Sudan. We have not received a comprehensive report on the status of Ugandans in Juba, however, the Ministry of Foreign Affairs and the Ugandan security agencies are closely following up the matter and will brief the nation of its findings as soon as possible. Currently, the Ministry of Foreign Affairs has consulted the security personnel and they are doing all that it takes to ensure that Ugandans in Juba are evacuated from South Sudan,” Kyambadde said in a press statement.
“Juba airport is still closed and the main road to Nimule is closed too, however, security has gone in to clear the road and has sent in 30 trucks that are going to evacuate Ugandans through the Eastern Route of South Sudan,” she said.
Kyambadde said the government of Uganda advised the Ugandan business community to explore other market opportunities created through regional integration especially in EAC and COMESA.
She said Ugandans can export to other EAC member countries including Kenya, Tanzania, Burundi and Rwanda under the Common Market protocol. Uganda is implementing the COMESA Free Trade Area which opened up market opportunities in 19 COMESA member states including the neighboring DR Congo where there is a huge market for Ugandan products.
Uganda’s leading exports to South Sudan include; cereals, milling products (maize floor, wheat flour), sugar, iron and steel, cement, beers and soft drinks, motor vehicle re-exports, vegetable oils and soap lubricants.
Information from Capital FM a Kenyan base multimedia platform, reported that Kenyan businesses were beginning to sprout South Sudan but will now shut following the recent shootings in Juba.
The radio reported that in 2015, South Sudan was the sixth largest export destination for Kenyan goods in Africa behind Uganda, Tanzania, Rwanda, Egypt and Democratic Republic of Congo. For example, the value of exports to South Sudan decreased to Ksh17bn in 2015 from Ksh19.8bn recorded in 2015. Kenya’s exports to the South Sudan include pharmaceutical products, food, edible oils and among other manufactured products.
On the same note, the Rwanda Times, said the war in Juba will have spiral effects to the Rwandan business community whose businesses range from transport, ICT, services to agricultural products. Reporting further that, RwandAir, Kenya Airways and Ethiopian Airlines had suspended regular flights to Juba following fresh fighting between forces loyal to President Salva Kiir and his deputy Riek Machar.
According to Rwanda Times, RwandAir’s flight suspension throughout the week made the company to lose roughly $50,000 a week. The airline’s senior manager of promotion and head of marketing said at least close to 15 to 20 people travel every four days a week to South Sudan mostly for business purposes. An economy ticket price is about $500.
As the business community EAC ponders for their next move as business stalls in Juba, exploring other market opportunities across the region and beyond will certainly come in handy for most business men and women as they await the dust in Juba to settle.
Source: Business Week

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