By Bida Elly David
South Sudan’s economy is facing challenges due to foreign market monopoly and poor protectionism policy, an economist has said.
The statement comes as South Sudan pounds continue to depreciate further against the United States Dollar.
Economist Abraham Matoch told the No. 1 Citizen Daily Newspaper that South Sudan’s commodity sector has totally been crippled due to a lack of prioritization of domestic products.
“In commodity area, there is no reason to import vegetables, fruits in Uganda meanwhile we have in abundance, some fruits rote because no people are eating them,” he said.
He said there is huge production taking place across some parts of South Sudan, but much attention is being put on imports.
Matoch mentioned Western Equatoria State, some parts of Central Equatoria State such as Yei, Kajo-Keji, and Eastern Equatoria State with fertile land for production.
He argues that the commercial sector is under foreign monopoly due to inadequate institutional operationalization, delayed policies, and civil dormancy in ventures with limited capital.
“South Sudanese minds are not oriented to effective commercialization of their own services in the market, and this also worsens the situation,’’ he stated.
The economist emphasized that economic reforms will not occur unless the government prioritizes the country’s commodity and commercial sectors.
“South Sudan being a developing economy, South Sudan has the right to oversee everything, the moment the government decides to have a system that regulates the economy, and prices will be managed,” he added.
“This is where prices will be fixed, and nobody can put any amount rather it will be fixed according to production cost they have through assessment.”
He urged the government to prioritize domestic product commercialization, reduce foreign imports, and encourage South Sudanese to avoid redundancy and start businesses despite limited capital.
Last week, the National Constitutional Amendment Committee presented the amended Investment Act to the Ministry of Justice.
Once passed by the parliament it will guide business operations and investments.
The bill contains provisions that classify businesses run by local investors and those by foreign merchants.