The Uganda-Sudan trade worth Sh345 billion may be impacted by the civil-war in Sudan

• South Sudan may lose its source of foreign cash from other African countries, due to the ongoing conflict in the country. 
• Uganda’s economy could be negatively impacted by the conflict since Sudan is the country’s largest export market for tea and coffee, and South Sudan is its principal trading partner. 
• President Museveni of Uganda warned about the dangers of polarizing politics and identity in the region.

According to Amb Simon Juach Deng, the South Sudan envoy to Uganda, if the war in Sudan is not immediately stopped, it could have an impact on the economies of South Sudan and Uganda.

On yesterday’s episode of KFM’s Hot Seat, which was presented by Mr. Patrick Kamara, Amb. Juach stated that Uganda and other members of the East African Community would be affected by anything that affected Sudan and South Sudan.

“South Sudan will feel the pinch because if our source of earnings of hard currency are affected, then we aren’t going to have the purchasing power to buy the produce that are currently being imported to South Sudan from Uganda,” Amb Juach said.

Since the weekend, combat between SNA-allied forces and a paramilitary has taken place in Khartoum, the capital of Sudan, and other places. This conflict has the potential to disrupt the one pipeline that transports South Sudanese oil, the country’s main source of foreign cash, to the sea.

At the ports of Khartoum, conflict between the national army and the paramilitary forces of Sudan makes it impossible to transport oil onto ships. South Sudan’s economy was already deteriorating prior to the fighting as a result of internal armed conflicts between President Salva Kiir and his Vice President Riek Machar.

Uganda, South Sudan’s principal trading partner, was also impacted. The Uganda Revenue Authority estimates that in 2022, trade between South Sudan and Uganda exceeded Sh1t. Uganda exports goods worth more than Sh 345 billion to Sudan. Sudan is Uganda’s largest export market for tea and coffee.

President Kiir championed the end of hostilities between warring parties in Sudan, according to Amb. Juach, out of concern for what would happen to the region’s stability and the economy of South Sudan.

An online conference of the IGAD chiefs of state and government to discuss the situation in Sudan took place on Sunday. The heads of state reportedly requested that hostilities between the two parties end in the IGAD’s 40th communiqué.

“Immediately and unconditionally cease hostilities; de-escalate tension; and allow unfettered humanitarian access and ensure Sudanese citizens observed the holy month of Ramadan in peace,” a statement read in part.

Participating in the virtual discussion, President Museveni said he had previously warned Sudanese authorities about the polarizing politics and politics of identity that were being practiced by numerous parties.