S. Sudan Economy is under foreign control, our future is further descending into poverty

By Moses Kur Akech, JUBA

DEC. 14/2011, SSN; After six years of semi-Autonomy and four months of independence, almost every pound you spend on fuel, food, water, banking, labor, accommodation or transports goes to a foreign firm. With the current loose taxation system, it is apparent that no tangible tax revenues end up in government’s coffers.

Disgracefully, most foreign firms employ foreigners instead of locals. Our law-makers and law enforcers have miserably failed southerners in their duty to prioritize enactment and application of laws to control foreigners from flooding our country.

The government failed to establish micro-finance system where local entrepreneurs could get access to easier loans. Lack of access to finances has so far advantaged foreign traders during their scramble “rush” to control the lucrative market.

The architects of our republic may have done it so because of lack of knowledge, awareness or resources but still it's not too late to act in order to rescue our livelihood (economy).  

Foreign banks (KCB and Equity) took the lead in South Sudan shortly after South’s singular Nile Commercial Bank was killed by its owners.

Sadly, needless to mention managers, even most cleaners who clean foreign banks’ premises are foreigners while a handful number of jobless Southerners wanders around looking for jobs.

Some may blatantly argue that they are skilled workers, come on, how long does it take a firm or a government to train a cleaner? All Juba parliament needs to prioritize is to enact laws which protect Southerners’ jobs and bring law enforcement agent (police) on board to enforce laws.  

Energy, almost all petrol stations are controlled by Somalis traders. Petrol prices hit the highest record of 7 SSP per liter in the recent months, 3.5 pounds higher than 3.5 SDG in the beginning of this year.

Surprisingly, you never spot any Value Added Tax (VAT) in any receipt you get from petrol stations. I was vaguely one time answered by a Somali petrol station attendant that they pay taxes at the border after having queried. There is a great need for the government to subsidize this industry in order to control ever climbing fuel prices.

Furthermore, government through the ministry of Petroleum needs to partner with local traders and build fuel depots to prevent any future acute fuel shortages and to control the often hiking fuel prices too.

Big hotels where most government officials, guests and visitors stay are allegedly owned by foreigners. Star Hotel, New York, Grand Hotel and Juba Bridge are for instance reportedly owned by Ethiopians and Eritreans. Summer Palace and Beijing by Chinese and Sahara Hotel with Lebanese and the list continues.

Most disturbingly, the majority of workers working in these hotels are foreigners instead of South Sudanese nationals who deserve the utmost right to acquire jobs.

For instance, I went to Spice and Hub twice at the peak hours of the evening and what I witnessed was a total disgrace, almost 99% of workers were foreigners.

Furthermore, there is overwhelming evidence that most foreign workers never pay taxes from their wages they get paid for, making one wonders on how long the government intends to run its business on interest-crowned donations and the aging oil.

However, this phenomenon is not foreign firms/employers’ fault, either the blame goes to the government for having not timely empowered institutions to bridge this complete lack of application of existing laws.  

There is nothing wrong for foreign investors to invest in a virgin land such as South Sudan inundated with abundance of business opportunities. Foreign investors create jobs opportunities for locals and generate revenues for the state when there is a sound regulatory system in place.

Nonetheless, the government has the responsibility to open vocational training centers and train local youth with skills sellable to foreign employers.    

Most Local Shops where residents buy food items are largely run by Northerners and Somalis across the South. Other places for shopping such as Jit Super market and spare parts shops are mostly owned by Indian traders. Tellers at the super markets are foreigners while Southerners get less paid jobs.  

Foreign traders also control water supply industry. Almost all water tanks and drivers and co-drivers are foreigners. There is no doubt that these foreign traders are taking advantage of the lack of proper regulatory system and weak law enforcement in the South Sudan. 

Private security firms except one are owned by foreigners. The sector could offer a better alternative employment opportunity to some stagnant SPLA and police officials without assignments.

This widespread foreign control in our economy contributes to the current skyrocketing hard Currency demand in the South Sudan begets ‘Dollar Black Market’. No doubt foreigners export back every profit they make here to their respective countries in hard currency form and hence given the fact that they approximately control three quarters of our economy bogus Hard currency deals will remain a challenge.

Hence, the government needs to act swiftly to enact strict laws to protect its wealth from pouring into foreign countries leaving the country with scourged poverty.

I think one of the fundamental reasons South waged bloody civil war against Khartoum was economic marginalization. Hence, it would be treacherous if we keep this pricey land which had cost 2.5m lives and an immeasurable amount of labor like a shopping mall where everyone enters and goes untaxed.

The government ought to speedily boost its own local business world through capacity building and offer financial support by initiating new schemes (microfinance) where local entrepreneurs can get loans across ten states.

There is also a greater need for our government to activate our law enforcers to enforce tax regulations and control the already rampant pandemic of foreign workers with less-needed skills.

Economy is always the backbone of any country aspiring to stand on its own feet and be able to run its daily activities. A nation without tax collection regulatory system is like an engine without fuel supply.

There is a great need to have both short and long term measures in order to bolster our infant economy and most importantly to protect our jobs and wealth from foreign vultures. Action is needed now or else the blood-bathed Island will further descend onto the bottom of poverty’s stepladder.

Moses Kur is a social critic and analyst base in Juba     

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