Ibrahim Kasita
8 July 2009
Kampala — CURRENT revenue collection practices at international and inter-state borders in Southern Sudan are harming trade and are clearly open to corrupt practices, a report has stated.
They are severely damaging the reputation of the Southern Sudan government and undermining the development of a proper sense of state legitimacy during what remains a delicate period of transition and emergence from conflict.
The Cross-Border Trade: Fuelling Conflict or Building Peace report says there were about seven revenue collection agents at the Nimule border point.
These include customs and excise, state revenue authority, commercial, standard commerce, Government of Southern Sudan (GoSS) taxation office, Police traffic officer and Magwi.
"With the exception of customs and excise, who most traders felt applied charges in what was described as a fairly transparent and understandable way, the charges levied by other offices are perceived to be arrived at in a highly irregular and arbitrary manner by he large number of collection agents present at the border crossing," reads the report. "Many people said the receipts are often not issued or are not for the amount of money actually remitted."
The report carried out by Conciliation Resource, pointed out that while foreign traders are said to be likely to have to pay more, nationals and non-nationals a like complain bitterly about this problem.
"As well as resulting in higher prices by the time goods reach market, the situation is seriously damaging the reputation and legitimacy of the Southern Sudan government as most people blame them, fairly or unfairly, for the situation," the report stated.
"The current situation is also causing real and growing anger among some Sudanese traders who feel that their livelihoods are being directly threatened as a result of what they perceive to be gross and uncontrolled corruption at the boarder."
Since the signing of the Comprehensive Peace Agreement (CPA) combined with the absence of the Lord's Resistance Army in northern Uganda, trade has boomed.
In 2006 informal exports from Uganda to Sudan were estimated to be worth $7.8m rising to $8.6m in 2007.
Imports from Sudan into Uganda were estimated by the Uganda Bureau of Statistics to be worth $517,000 in 2006 and $456,000 in 2007.
The trade figures for 2008 are still being compiled but the overall volume of trade will almost certainly have increased further over the past month. Rapid increase in the volume of trade and expanding demand has led to a large number of banks moving into northern Uganda or significantly expanding their operations there.
However, a number of businesses still appear to be cautious about making long-term investments in Southern Sudan and see establishing bases in northern Uganda as a less risky way of being closer to the Southern Sudanese market as well as capturing business from the growing market in northern Uganda.
The report said that Southern Sudan currently relies heavily on the East African market for the supply of most goods and commodities, particularly food.
"Most people recognise that without access to this market, food security in many areas and particularly Juba could not be maintained," the report added.
It recommends that extreme care needs be taken not to put obstacles in the way of trade in response to short-term concerns about the impact of trade on food security.
"During this period of transition, local food price changes in areas of northern Uganda recovering from conflict should be monitored more closely and more regularly. Timely provision of market information would help both producers and traders," the report recommends.
"The contribution of cross-border trade should be taken into proper account in PRDP programming to ensure that interventions consider its important role and future potential, and that the benefits are realised across border communities in northern Uganda, not just like key trade routes."
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