Kacita, UMA Plan Border Outlets to Safeguard Trade Amid South Sudan Uncertainty
Kacita Chairman Thaddeus Musoke said the initiative will provide traders with a secure and controlled environment to continue their operations, reducing their exposure to instability in Juba.
As tensions mount in South Sudan’s capital, Juba, Uganda’s business community is bracing for potential disruptions, with the Kampala City Traders Association (Kacita) and Uganda Manufacturers Association (UMA) planning to establish border outlets at key Ugandan border posts.
The move aims to protect Uganda’s commercial interests while ensuring trade resilience during uncertain times.
Kacita Chairman Thaddeus Musoke said the initiative will provide traders with a secure and controlled environment to continue their operations, reducing their exposure to instability in Juba.
He also advised local traders to exercise caution and consider pausing business engagements with South Sudan until the situation stabilizes.
South Sudan remains a crucial market for Uganda, with trade between the two countries generating significant revenue. According to the United Nations Comtrade database, Uganda’s exports to South Sudan reached $536.46 million in 2023.
Key export products included iron and steel ($51.92 million), beverages, spirits, and vinegar ($51.78 million), plastics ($18.36 million), and milling products ($70 million).
Uganda’s business community views the establishment of border trade centers as a strategic move to maintain trade flows despite regional instability.
These outlets would provide an alternative for Ugandan traders and reinforce the country’s position as a key regional trade hub.
Senior economist Jonan Kandwanaho emphasized the need for traders to insure their goods and avoid excessive financial leverage, warning that heightened risks in Juba could lead to significant losses.
“When traders go to Juba, they face hostility. They should insure their goods so that in case of any mishap, insurance can cover them,” Kandwanaho said.
South Sudan has experienced prolonged instability, from civil wars to economic sanctions and political upheavals, all of which have intermittently disrupted trade.
The most recent significant disruption followed the 2019 coup, which exacerbated tensions and affected cross-border trade in agricultural products, livestock, and fuel.
By setting up border outlets, KACITA and UMA hope to cushion Ugandan traders from the impact of such disruptions while ensuring that business continues to thrive, even amid regional uncertainties.
