HOW TRADE WILL IMPROVE THE LIVES OF BUSINESS OWNERS IN SOUTH SUDAN UNDER THE AfCFTA AGREEMENT

Trade is “a voluntary exchange of resources (goods and services) between two parties. It refers to the sale and purchase of assets and securities between two consensual sides.” www.https://economictimes.indiatimes.com/definition/trade. The Cambridge Advanced Learner’s Dictionary – 4^th Edition adds that; “trade is the activity of buying and selling, or exchanging, goods and/or services between people or countries. In this article, the author defines trade as the exchange of goods and/or services for economic/profit gains.

The African Continental Free Trade Area (AfCFTA) Agreement will provide an opportunity to member nations to trade with limited or no barriers. The ways in which business owners in the member states including South Sudan will benefit include but not limited to the following;

Exchange of cultures and opportunities leading to strives in economic growth and development. The business persons will be able to welcome or accommodate diverse cultures and, it is through such cultures that people are able to assess their level of Human Development Index leading to civilization, growth and development. Such cultures include formal ways of conducting business meetings, seeking of funds, value addition among others that will be able to take a business person from one level to another.

More and well paid professional and skilled job opportunities leading to the financial performance of South Sudan who will in turn pay good taxes taxes to the government which in turn improve the country’s balance of payment and or balance of trade. The current Balance of Trade of South Sudan is not promising though; “despite the reliance on oil, about 95 percent of the 11.2 million people are engaged in subsistence agriculture, including livestock. But agriculture contributes only 15 percent to South Sudan’s GDP.” Ministry of Trade and Industry Draft Report, April 2022. If this population is engaged in commercial farming and other business opportunities in the country and is opened up to free trade, South Sudan will be able to produce surplus of agricultural and other products and services and supply enough to other African nations. The cost of importation of food will be invested into other industries. “60% of South Sudan imports is food related products”. South Sudan Chamber of Commerce Report, 2023.

Economic growth and development of remote locations of South Sudan with global recognition for each place’s resources / services that maybe of demand on the international market. Example; South Sudan’s forestry products are located in distant places from the town; establishing forestry mills in those locations will lead to the development of those places. Also, opening of farmlands for agro-complex industries with food processing will lead to the recognition and development of those places. “The value for agricultural land in South Sudan is 285,332 Square Kilometers of which only 4% is being productively used” UNFAO Journal on Agriculture, (2018). All these will lead to bustling civilization followed by improved standard of living in those places.

Efficiency Increase; South Sudan resources are either being mis-utilized or underutilized because most of the trade is done in dubious ways where many business persons end up being cheated and the resources benefit the foreigners. Example; the local community of Nzara, Yambio and Ibba Counties of Western Equatoria State benefit little or not at all from the teak plantations that were done in their localities during colonial times. The forestry products benefit only the investors and a few politicians who sold the plantations to them at meagre prices. But with AfCFTA, better investors may be able to show up and the community will benefit from such products.

Despite the fact that South Sudan has raw materials for industrialization such as the manufacture of food products, toiletries, fabric/textile among others, it has not taken industrialization seriously. Once the AfCTA agreement is fully implemented, foreign investors may take the initiative to start production and manufacture of these items in South Sudan and thus, local investors will pick it up and all will lead to industrialization of the country leading to improved standard of living.

South Sudan resources are majorly being managed by foreigners who have no indigenous knowledge about it. Example; for some years, South Sudan Revenue Authority have been managed by a foreigner. But with the nationals getting vast knowledge and skills in managing their resources, they will be able to establish large-scale production areas with a local context and this will be embraced by the local people and who will boost the production knowing that the profits will not be repatriated but rather used for development of the nation.

In conclusion, AfCFTA holds immense promise for businessmen in South Sudan by creating a more conducive environment for trade, investment and collaboration. Through expanded market access, tariff reduction, increased financial inflows, enhanced regional integration and stimulated sectoral growth, AfCFTA paves the way for a more prosperous and dynamic business landscape in South Sudan. By capitalizing on the opportunities presented by this historic trade agreement, businessmen in South Sudan can unlock new paths to success and contribute to the country’s economic transformation.