Regional government moves to stem foreign exchange on the black market
By Julius N. Uma
November 2, 2010 (JUBA) – A new macro-economic approach will soon be developed to address irregularities resulting from black market operations in the Southern Sudan, Stephen Dheiu, autonomous region’s Commerce, Trade and Supply Minister has revealed.
Exchange rates on the black market are much better than from the central bank. The banks pay SDG 2.4 to the US Dollar where as on the black market $1 buys SDG 3.
“Black market business mainly results from the market forces of demand and supply, which is common in free market economies. In our situation, black market as even been worsened by scarcity of dollars on the market,” the Minster said.
Dheiu outlined a series of intervention measures to curb the trade.
He hopes that increasing South Sudan’s exports will improve the economy and discourage people from turning to illegal activities for their livelihood:
“As a Ministry, we shall soon embark on exporting goods to other countries whereby payments will be done in foreign currency. This is a positive intervention measure to protect our citizens from possible exploitation”.
Dheiu said that plans are underway to adopt formal systems of trade in the region, with a focus on creating a conducive environment for local and foreign investors. The minister hopes to achieve this through formulating industrial laws, trade policies, investment guidelines and other related regulations that will protect the interests of potential investors.
Since 2007, the Commerce, Trade and Supply Ministry say they have supported and funded 42,000 small businesses through the microfinance sector.
The minister reiterated the call for economic diversification into agriculture, natural resource exploitation and exports to avoid over reliance on the country’s oil revenues.
“The economy will only grow when overall production activities are raised through diversification and emphasis on locally based labor force,” Dheiu said.
Last year, according to the Minister, Sudan’s Gross Domestic Product (GDP) was an estimated $68 billon, with the industrial sector and agriculture each accounting for 30%, while the self-service sector contributed about 40%.
Statistics from neighboring Uganda and Ethiopia also indicate that South Sudan is emerging as their top trading partner in terms of goods exported to the region, which could become an independent country after a referendum in January.
(ST)
Grader
Black market?
I don’t agree that anything illegal or devil is black?
Others should be saying this …but not us in Africa
Santino Nuan
Regional government moves to stem foreign exchange on the black market
Thanks to H.E Stephen Dhieu
Dhieu is a very econnomic minded person who have acquired valuable expereince in economic. Before his appointment by our President to lead GOSS in Commerce and Industry Ministry, H.E Stephen Dhieu Dau was a Minister of Finance in Upper Nile State and he had improved very much the Upper Nile State in terms of financial control and systems. 80% of NCP’s corruption legacy has been eliminated through Dhieu’s effort and management in the Finance Minstry. Now Upper Nile State is one of the best states in the ten state in the South that pays its workforce on time.
I am sure Dhieu will do a lot in GOSS especially in that particular minstry. Next time, our President should upgrade him to the Minstry of FInance if we love quick improvment in our financial systems and economy gross.
Long live Stephen and Southern Sudan will progress like other regions
Santino Nuan
Padiet Deng Alony
Regional government moves to stem foreign exchange on the black market
Keep up your good deeds as you have done it in Upper Nile before. That is what we mean right people at right places. If South Sudan could get others like you, all the 10 Southern Sudan States wuold have enjoy the fruit of what they sow early.
“That is the really Nature of Apadang Dinka”