SOUTH SUDAN TO PAY $ 41MILLION IN COMPENSATION TO UGANDAN TRADERS

The South Sudan government will pay $41m in compensation to members of South Sudan Traders Association Limited (MSTAL) a Ugandan body, which lost their property while trading in Juba.  The body claimed harassment, confiscation of goods and property and the failure of the South Sudan government or individuals to pay for goods and services supplied and in some cases injuries and loss of life in the course of business.   Among the firms that will be compensated are Aponye Uganda Limited ($8m), Afro Kai Limited ($2.58m), Sunrise and other single claimants who have sought compensation.  Many of them have been trading in South Sudan, particularly exporting grain that has largely been on demand.   The compensation was revealed on Tuesday when the Trade Dispute Arbitration Committee was handing over a report to Amelia Kyambadde, the trade minister.  The committee was tasked with reviewing and verifying trade disputes and claims in South Sudan. Both the South Sudan and the Ugandan governments verified the compensation claims.   The South Sudanese have agreed to pay the compensation. The function took place at the ministry’s head office on parliament Avenue, Kampala.   “I am delighted to receive the final report today. This report will form a basis for our engagement with the Republic of South Sudan to ensure that these disputes are resolved once and for all,” Kyambadde said.  She added that trade between Uganda and Sudan has been growing steadily.   In 2008, Sudan accounted for 14.3% of Uganda’s exports, compared to Kenya’s 9.5%, Switzerland 9% and Rwanda 7.9% according to Uganda Bureau of Statistics.   Many traders report that they are now reluctant to continue trading in South Sudan. The 2010 rankings of Uganda’s top markets by the Uganda Bureau of Statistics indicate that trade with South Sudan was relegated from the first position in 2008/9 to fourth in 2010.  The leading three export destinations are now Kenya, Rwanda and DR Congo. This seems to suggest that traders are finding other destinations for their products, Kyambadde explained.  “One cannot rule out the possibility that traders are giving a wide berth to South Sudan and preferring export destinations that do not come with difficulties,” said Kyambadde.   She added that the ministry is hopeful that once these claims are settled and the trade environment in South Sudan improves the traders will regain confidence to seek market and investment opportunities in Juba.