Nimule. Uganda is hoping to increase the
volume of trade with South Sudan following the completion and handover of the
first phase of Nimule one stop border post (OSBP) to the Juba government.
The Nimule OSPB will be managed
by South Sudan customs officials and if operated as it should, there is no
reason as to why regional trade shouldn’t flourish.
While Elegu, the Ugandan side of the border has for a while
now been operating as OSBP, Nimule, the South Sudan custom point has been going
about its business in the most frustrating manner, rendering cross border trade
often times a nightmare.
Speaking in an interview after
witnessing the handover of the OSBP infrastructure in Numule, South Sudan
recently, the Minister of Trade, Industry and Cooperatives, Ms Amelia Anne
Kyambadde described the $5million (about Shs 18.3billion) facility funded by UK
government through TradeMark East Africa (TMEA) as “a very important
development” for not just South Sudan and Uganda but the entire EAC regional
trade.
She said: “With opening of the
Nimule OSBP, I expect exponential rise in trade. We expect to grow our trade
with South Sudan by close of the year by even $500million (slightly more than
Shs1.8trillion).”
She continued: “We would like to
see our traders form orderly associations so as to manage cross border trade
well. This is important because the experience garnered here could act as a
launch pad for the continental market—AfCFTA.”
Ms Kyambadde indicated that South
Sudan is a key market for Uganda’s exports, considering that it accounted for
$239.2 million in 2016, $299.3 million in 2017 and $355.9 million in 2018. It
further emerged that between 80-90 per cent of South Sudan merchandise pass
through Elegu-Nimule border points.
Further benefits.
With Nimule OSBP up and running,
quick clearance of goods and professional services to the custom point users
should be able to be rendered without difficulties. Unlike previously, market
access shouldn’t be out of reach.
The apex body of the private
sector foundation in the country and some key trade associations, including the
Kampala City Traders Association described the development of Nimule OSBP as
long overdue. However, they remained cautious, saying not until peace and
stability is guaranteed in the neighbouring country, the situation there
remains a risky affair.
Conditions.
For further investment to be
injected into the phase two of the trade facilitation at Nimule, TMEA expects
peace and stability to prevail in South Sudan as a matter of urgency.
Currently, peace negotiations
between President Salva Kiir and his long-term rival Riek Machar aimed at
forming a unity government is underway.
In his speech, Dr James Wani
Igga, the Vice President of South Sudan noted that the importance of trade
among African states is a catalysts for peace and the much anticipated regional
and continental integration agenda.
He said Nimule OSBP will play its
role of easing trade but noted that the challenge to attain that goal will
become evident in the transition phase.
Ms Damali Ssali, a trade analyst
and also the acting country director of TMEA-Uganda noted that the Nimule OSBP
was designed not just for enhancing formal trade, but has also been set up to
facilitate informal cross border trade where women make up the biggest number.
Additionally, Ssali said, the
facility will cut down on the red tape and bureaucracies, which she said are
the two major challenges to cross border trade.
She committed that TMEA, in
partnership with the East African Community (EAC) secretariat will train the
border official at the Nimule-Elegu border in the OSBP controls to ensure
efficiency and reduce the time it takes to cross borders to at least 50%.
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