Juba County Caretaker Commissioner Kalisto Lado has directed foreign traders to vacate small-scale retail businesses in Juba, arguing that these opportunities should benefit local people. Lado stated that foreign nationals should focus on wholesale trade, manufacturing, and importing goods rather than selling everyday commodities in small quantities. This move aims to create space for South Sudanese nationals to earn a living.
Lado's directive is not new; he previously took a similar stance in 2021 as Juba City mayor. At the time, he called for foreigners to be barred from small-scale retail and instead invest in wholesale businesses, factories, and industries. His latest remarks revive a long-standing debate about the role of foreign traders in South Sudan's economy. The issue has significant implications, as Juba has heavily relied on regional trade, particularly with Uganda.
The debate has historical roots, dating back to 2013 when South Sudan's Interior Ministry ordered foreign nationals to stop operating commercial motorcycle taxis, or boda bodas. The directive affected about 1,600 Ugandans working in Juba and other parts of the country. Many returned to Uganda, citing harassment and confiscation of their motorcycles. This move was officially linked to concerns about crime and road safety but also reflected a desire to reserve certain economic activities for nationals.
Ugandan traders have played a significant role in Juba's informal economy, particularly in grocery trading, taxi services, and boda-boda operations. A 2013 South Sudan government market assessment found that about 90 percent of vegetable wholesalers interviewed in Konyokonyo Market were Ugandan nationals. This highlights the important role foreigners have played in the city's food supply chain.
The relationship between Uganda and South Sudan has been disrupted by conflict, affecting trade between the two countries. In 2016, Uganda's Trade Ministry reported that South Sudan was Uganda's leading export destination in 2008, with combined formal and informal exports reaching about $1.18 billion. However, renewed fighting in Juba led to a decline in trade, and Ugandan businesses were advised to explore alternative regional markets.
Despite this, Ugandan traders returned to South Sudan in 2017 as business conditions improved. The chairperson of the Ugandan community reported that traders were coming back because commerce in Juba was picking up. Lado's latest directive may affect businesses that have operated in Juba for years and are part of the wider regional trade network linking South Sudan with Uganda and other neighboring countries.
For South Sudanese women and other small-scale traders, Lado's argument is that restricting foreign participation could create more space for nationals to earn a living. However, enforcement of such restrictions could have significant consequences for foreign traders and the broader economy. The issue remains a delicate balance between South Sudan's desire to reserve certain economic activities for its citizens and the country's reliance on foreign traders for goods, services, and investment.
Key points
- Juba County Caretaker Commissioner Kalisto Lado directs foreign traders to leave small-scale retail businesses to South Sudanese.
- Lado's directive aims to create space for South Sudanese nationals to earn a living.
- The issue has significant implications for regional trade and the economy of South Sudan.
