Juba County's decision to reserve small-scale retail businesses for South Sudanese nationals has generated controversy amid high unemployment and limited economic opportunities. Caretaker Commissioner Kalisto Lado argues that foreigners should focus on wholesale, manufacturing, and larger businesses, leaving small-scale retail to South Sudanese women and youth. This move aims to address the frustration of South Sudanese citizens watching foreigners occupy businesses requiring relatively little capital while many struggle to find employment or start enterprises.
However, economic empowerment is not achieved through exclusion alone. The government must provide capital, affordable loans, and reliable infrastructure to support small traders. It must also protect them from harassment, multiple taxation, and arbitrary fees. Moreover, the capacity of South Sudanese to survive in these businesses must be ensured. The county's directive has sparked concerns about the readiness of local businesses to take over and the potential impact on the economy.
Juba's markets are part of a regional trading system, with Uganda, Kenya, Ethiopia, Eritrea, Burundi, and other countries supplying goods, services, labor, and capital. Uganda has historically played a significant role in Juba's informal and formal commercial networks. A 2013 market assessment found Ugandan nationals making up a large share of vegetable wholesalers at Konyo-Konyo Market. This reality cannot be ignored, as South Sudan needs local ownership and functioning markets.
The government has a legitimate reason to protect opportunities for its citizens, but protection without preparation can lead to empty directives. Enforcement should be based on clear regulations, not nationality alone, political moods, or verbal directives. If the county intends to enforce a blanket restriction on foreign participation in retail, the public deserves to know the legal basis, exact businesses covered, transition arrangements, and rights of affected traders.
The directive's implementation and potential grace period for existing businesses remain unclear, creating uncertainty for citizens and foreigners. South Sudan cannot claim to be serious about attracting investment while businesses operate in fear of changing rules. The country is part of the East African Community, alongside Uganda, Kenya, and Burundi, and must consider regional implications of policies affecting cross-border traders.
South Sudanese traders should be able to seek opportunities beyond the country, while South Sudan retains the right to regulate businesses operating within its territory. Rules should be transparent, predictable, and consistent with the country's legal and regional commitments. The government must confront the uncomfortable truth that foreigners did not create all weaknesses in South Sudan's private sector, and that citizens face challenges such as lack of affordable credit, weak infrastructure, and high operating costs.
To achieve economic independence, the government should create affordable financing for South Sudanese entrepreneurs, reserve sectors for citizens, reduce business fees, improve market infrastructure, and provide vocational training. By addressing these issues, South Sudanese can take over businesses and make them thrive, rather than simply chasing foreigners from market stalls.
Key points
- The government must provide support for small traders, including capital, affordable loans, and reliable infrastructure.
- Enforcement of regulations should be based on clear rules, not nationality alone.
- South Sudan needs to address underlying challenges, such as lack of affordable credit and weak infrastructure, to build a productive economy.
