By James Innocent
Traders and consumers in Yei River County, Central Equatoria State, report that the surging US dollar exchange rate and high taxation have severely impacted the economic well-being of residents.
They are urging relevant authorities to prioritize dialogue for peace and focus on livelihood activities to mitigate widespread hunger, affecting an estimated 90% of communities in South Sudan, including returnees.
Gidayi Ratib, a meat seller in Dar el Salam Market, stated that the price of one kilogram of meat jumped from 8,000 South Sudan Pounds (SSP) a few months ago to 20,000 SSP due to the increased cost of cattle in the market.
He appealed to South Sudanese citizens to reject conflict and work towards lasting peace to alleviate the suffering of the population, including returnees.
Ismail Mawa, a butcher at Dar el Salam Main Market, highlighted the growing challenges faced by consumers due to the rising prices of food commodities.
He expressed deep concern about the country’s economic trajectory, stating, “We are really worried because we don’t know exactly where this country is heading.”
Meanwhile, Arike Peter Noel, a trader selling mixed goods, explained that insecurity in the country forced him to sell his wares on the streets.
He now sells a single bar of soap for 4,000 SSP. He further added, “The price of 10 kilograms of maize costs 3,000 SSP, and one kilogram of sugar costs 5,000 South Sudanese Pounds.”
Business owners in Yei River County lament that the high dollar rate and heavy taxation have caused a double increase in commodity prices, leaving many citizens struggling.
Luwate Raphael, the chairperson of the Chamber of Commerce in Yei River County, explained that market prices are directly influenced by the dollar exchange rate and the taxes levied on businesses.
He attributed these challenges to the country’s heavy reliance on imports due to low local production and manufacturing. This necessitates frequent foreign currency transactions for importing goods.
He pointed out that, “The government of South Sudan faces the challenge of not diversifying its economy and relies heavily on oil revenue as its primary source of foreign currency, particularly US dollars. This low supply of imports drives up demand and prices.”
He encouraged citizens to increase food production to help reduce the high cost of commodities.
Raphael further stated, “Whenever government expenditure is high, taxes tend to increase. Similarly, when foreign currency rates rise and taxes on traders increase, market prices invariably follow, negatively impacting consumers.”
The head of the business association emphasized the need for peace in South Sudan to enable local food production.
He also urged the government to regulate the multiple layers of taxes imposed on traders at national, state, county, and checkpoint levels.