Traders wary of Sudan, South Sudan tensions - Daily Monitor

Beating war drums. The two countries have for the past year had tensions that are threatening to turn into a full-scale war.

Ugandan traders are worried that the latest clashes between South Sudan and Sudan will hurt businesses and thus see the country lose billions in revenue.

This comes after several months of tension between the two countries that has resulted into clashes in Heglig – part of the disputed oil rich areas in the two Sudanes.

Early this month, the Sudan Parliament cast a unanimous vote which branded the government of South Sudan as an enemy.

Mr Issa Sekitto, the spokesperson of Kampala City Traders Association, told Daily Monitor the threats of war will be disastrous as it could cut off trade thus Uganda losing billions of shillings.

South Sudan is one of Uganda’s biggest export markets. In 2009 and 2010 alone, Uganda earned $2.95 million from exports to the country. Commodities such as sugar, bottled water, beer, and fresh food items are among the most exported to the country.

“There has always been tension between Ugandan and Dinka traders even without war, so what if war breaks out? How will Ugandans and their businesses survive?” Mr Sekitto wondered.

“In fact some people in Juba who are thinking of selling their stock at giveaway prices and vacate before war breaks out.”

Mr Moses Ogwal, the Private Sector Foundation Uganda director of policy advocacy, echoed the same sentiments, saying: “If the tension escalate into full scale war then our trade will be in jeopardy.”

He added: “Our prayers are that the two parties can reach an amicable conclusion and avoid war.”

However, Mr Ronald Mutesasira, the director of Worldwide Movers Africa in Juba, told Daily Monitor on Friday that even as tension builds at the border, business within South Sudan is still going with no visible signs of tension.

“There is no mounting tension in Juba and nearby towns at the moment. People are calm and doing their business. Cargo is coming in from Kampala as usual. I am yet to see any anti-business factor at the moment,” he said.

Export worth: Uganda exports an estimated worth of $2.95 million to South Sudan, according to the 2010 ministry of Trade data.

Commodities exported: The commodities that are mostly exported to South Sudan include sugar, bottled water, beer, and fresh food items.

The Kenya factor: Kenya trades more with South Sudan compared to other countries in the region.
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