South Sudan decides to strengthen trade ties with the north

January 13, 2008 (JUBA) — The Government of Southern Sudan (GoSS) has decided last week to resort to northern Sudan for the supply of the commodities rather that depending on neighbouring countries. This decision comes as direct result of the severe shortage of food commodities and fuel after the Kenyan political crisis.

Political violence in Kenya is choking off supplies of fuel and petroleum products to neighbouring countries such as Uganda and Burundi but also eastern Congo and south Sudan. They all get fuel from Kenyan ports, where supply lines have been interrupted by the chaos that has followed the disputed re-election of President Mwai Kibaki.

The GOSS’s Minister of Presidential Affairs, Luka Biong, told Al-Sahafah daily newspaper that the government of the region had agreed on a set of short, middle and long term solutions to counter the crisis of food and fuel shortage and the exorbitant price increases. He indicated that this crisis was the result of chaos that occurred in Kenya.

Biong said that 40 percent of the south’s goods for consumption, including fuel, arrive through Kenya. He said this had led to the great increase in prices which were now five or six times higher than in the North.

He further said that the southern Sudan cabinet had discussed the issue in its last session on Friday and directed to form a ministerial committee from the ministers of Energy and Mining, Roads and Transport, and Trade to find out a solution for this crisis.

He stressed that the focus on cooperation with the northern Sudan will be at the forefront of solutions rather than reliance on Kenya and Uganda on the flow of all essential goods and petroleum products. This is in addition to improving road and river transport between north and south.

Biong further added the fact that the south was not connected to the north and that privatization of river transportation had a negative effect and had obliged the oil-producing south to import oil from neighbouring countries. He said that as a result, southern citizens were now paying a much higher price than their northern counterparts for the same commodity.

The minister added that the long-term plan is to establish oil refinery in the south, indicating that the ministerial committee will send a technical team to meet with the Government of National Unity to discuss ways to provide essential goods, including petroleum products.

(ST)