EABC and GIZ Empower South Sudanese Private Sector for AfCFTA Opportunities"

 

On Thursday, November 23, 2023, in Juba, Republic of South Sudan, the East African Business Council (EABC), in collaboration with GIZ - Support to East African Integration Programme Project II, bolstered the knowledge of 48 members of the business community involved in value addition across priority sectors. These sectors include agribusiness, manufacturing, leather, pharmaceuticals, transport & logistics, and fruits & vegetables, focusing on the African Continental Free Trade Area (AfCFTA) Trade in Goods Protocol.

Ms. Christina Peter Jabakana, the Director General for Administration from the Ministry of EAC Affairs, Republic of South Sudan, officially opened the workshop, emphasizing its importance in inspiring and encouraging the South Sudanese private sector to seize the abundant opportunities presented by the African Free Market through the implementation of AfCFTA.

"Let us use this workshop to identify likely challenges the private sector in South Sudan may encounter when starting trading under AfCFTA to come up with an effective strategy to resolve them," she said.

She concluded by reiterating the government's commitment to creating a conducive business environment that will foster a vibrant private sector in South Sudan, capable of driving the national economy, as the private sector is the engine of growth.

Mr. John Lual Akol Akol, the First Vice Chairperson of the South Sudan National Chamber of Commerce Industry and Agriculture (SSNCCIA), stated, "The implementation of the AfCFTA Agreement comes with benefits and challenges, which have implications for businesses, making it very critical for the private sector to be aware."

He urged the South Sudan Government to ratify the AfCFTA agreement to make the Republic of South Sudan a legal and binding Party State of the Agreement, continuing to sensitize both private and public stakeholders.

"The AfCFTA provides an expanded market of 1.3 billion and a combined GDP of 3.4 trillion to South Sudan products, in addition to the EAC market of which South Sudan is a member," he said.

Currently, the EAC Trade and Investment Statistics indicate that South Sudan’s merchandise total trade increased to USD 443.6 million in 2022 from USD 216.7 million in 2021, while the trade balance deteriorated to USD 436 million in 2022 from USD 147.1 million in 2021. South Sudan’s main merchandise exports include crude oil, wood, and minerals, while the main imports comprise food products, petroleum products, and household consumer goods.

In EAC Regional Economic Communities (RECs), South Sudan continues to be a major export destination, while China and the EU remain dominant source markets. EAC total trade increased by 13.4 percent to US$74,030.9 million in 2022 from US$65,268.9 million in 2021. In 2022, EAC total exports to the rest of the world (RoW) were valued at US$20,139.4 million, and EAC total imports from the RoW amounted to US$53,891.48 million, resulting in an EAC recorded trade deficit of negative US$33,752.1 million in 2022. Total Intra-EAC trade grew by 11.2 percent to US$10,910.9 million in 2022 from US$9,810.4 million in 2021, with the percentage share of Intra-EAC trade to EAC total trade standing at 15 percent in 2022. In 2022, Intra-EAC exports amounted to US$6,366.27 million, while Intra-EAC imports amounted to US$4,544.63 million. The major Intra-EAC traded products are cereals, cement, iron and steel, live animals, petroleum products, sugar, foods, and beverages.

Mr. Adrian Njau, Trade & Policy Advisor with EABC, stated that the AfCFTA provides preferential market access for Burundian products to the whole African market, enabling South Sudan to diversify its imports and exports. He challenged the South Sudanese private sector to get ready for the opportunities and challenges presented with a wider market.

He mentioned that, given that this week the Republic of Sudan will become the Chairperson of EAC, it gives more responsibilities to the country in terms of implementing EAC and AfCFTA commitments.

"As the Government of the Republic of South Sudan prepares to implement EAC and AfCFTA commitments, it's the role of the private sector to actualize these commitments by starting trading under EAC and AfCFTA trade arrangements," he said.

He thanked the South Sudan National Chamber of Commerce, Industry, and Agriculture for collaborating with EABC in organizing the workshop in South Sudan and committed to enrolling more workshops engaging other areas of the Agreement, including Trade in Services, Women, and Youth in trade.

Focused on imparting knowledge on trading in goods, the two-day workshop aims to enhance the participation of South Sudan’s private sector in the EAC and African integration by seizing the opportunities of trade and investment under AfCFTA trading arrangements. The training covered the AfCFTA Trade in Goods Protocol and its annexes (Rules of Origin, Tariff Concession, and Non-Tariff Barriers) and its implications for businesses in the EAC bloc.

The full implementation of the AfCFTA is set to create a liberalized single African market for goods and services driven by the free movement of people and capital across the continent. The EAC Partner States have great potential to export agricultural products, minerals, and value-added manufacturing products to African countries under AfCFTA trading arrangements. Supported by GIZ, the two-day workshop was organized by the East African Business Council (EABC) in collaboration with the South Sudan National Chamber of Commerce, Industry, and Agriculture (SSNCIA)."