Government warns traders not to hike prices in market

By Benjamin Takpiny

The Minister of Trade and Industry, William Anyuon Kuol on Wednesday issued warning to traders not to take advantage of the current foreign exchange instability to increase prices of commodities.

 “I take this opportunity to warn traders who exploit such situations and advise them to reduce abnormal prices in the market, while the government of South Sudan especially concerned institutions work on the issue,” Kuol told Journalists in Juba.

This came after he held meeting with members of the chamber of commerce and officials from the department of domestic trade, price unit and private sector following the depreciation of the South Sudanese Pound against the U.S dollar.

Kuol admitted that the depreciation of the South Sudan Pound is affecting traders, but urged them not to hike prices of commodities at the expense of the public.

 “We witnessed the weakening of the South Sudanese Pound against the dollar in recent days in the black market. There are reports that it is being bought at 1400 SSP per 1 dollar although the dollar is being bought at the central bank at 1295 SSP per 1 dollar. This situation has created some uncertainties, these uncertainties are affecting the welfare of the citizens but our concern is the hike in prices of especially food commodities,” he disclosed.

Kuol said that the lack of support for local traders and existence of illegal checkpoints are among the major factors that have led to increase in prices of commodities across the country.

 “Traders are burdened by high taxes, which can increase the cost of goods and lead to higher prices for consumers. This can also reduce the competitiveness of local traders in the market. Local traders may face challenges such as limited access to financing, inadequate infrastructure, and insufficient government support. This lack of support can hinder their ability to compete effectively in the market, illegal checkpoints along transportation routes can lead to delays, additional costs, and disruptions in the supply chain. This can result in higher prices for goods as traders pass on these additional expenses to consumers,” Kuol said.

He revealed that in the meeting with the chamber of commerce and other stakeholders they came up with some solutions to help in addressing the current market prices.

 “Providing import and export licenses to traders can help streamline the process of importing goods at competitive prices, reducing costs and ensuring a steady supply of essential goods in the market,” he said. 

He added that imposing lower taxes on essential items can help maintain their affordability and accessibility for consumers, especially during times of inflation and economic challenges. 

Kuol said that providing  better access to financing, improving infrastructure, and offering training and capacity-building programs can enhance the competitiveness of local traders and support a thriving local market. 

 He also noted that they agreed with the chamber of commerce and the private sector to crack down on Illegal checkpoints.

 Lado Lukak Legge, the Chairperson of the South Sudan National Chamber of Commerce, Industry and Agriculture (SSNCCIA), said that the ministry of trade, ministry of finance, national revenue authority and the bank of South Sudan have the responsibility of stabilizing prices.

He blamed the National Revenue Authority for increasing taxes on traders  which has resulted into them raising prices of commodities to recoup their profit.

“People say it is the dollar but there are many other things happening, revenue authority has a hand in that, dollar is controlled by the ministry of finance and the central bank, why is the exchange rate going up, the traders put all this in prices, the taxes are heavy, traders used to pay 90 SSP but now it is 300 SSP an increase of 210 SSP,” Lukak said.

He said that South Sudan business people have been marginalized, adding that the government should empower them to compete in the market.

 “The government does not pay business people which is supposed to help the market, the market is controlled by foreigners, the nationals have no cash to bring goods, if the government pays traders that will help,” Lukak said.

He said that there are no South Sudanese who can order two to three trucks of goods because they are short of capital.

 Lukak advised the central bank to provide local traders with letters of credit to enable them deliver goods to the government.

 “The letter of credit is supposed to be given to the ministry of trade and that will help traders, we want the government to support local businesses so that they can offer goods at affordable prices,” he said.