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Roundup: Insecurity slows down business in S. Sudan

Xinhua, October 14, 2016 Adjust font size:

Insecurity posed by armed groups along South Sudan's major trade routes has disrupted business, causing traders to shun movement along the roads.

Since renewed fighting in July between the warring parties in the capital Juba, which also spread to peaceful Equatoria region like Yei, a sizable number of civilian deaths and arson on vehicles have been reported along the country's two major routes -- the 125 km Juba-Nimule road linking to Uganda, and the 150 km Juba-Yei road linking to DR Congo.

In August, gunmen allied to the rebel force SPLA in opposition led by ousted former First Vice President Riek Machar, attacked a bus along the Juba-Nimule road, wounding scores and more than five got killed.

In October, along the Juba-Yei road, a form of targeted killings on particular ethnic groups left over 21 people killed.

This latest bout of insecurity has left many traders and potential travelers in the capital Juba afraid of using the roads despite assurances of safety from the South Sudan Army (SPLA) and security agencies.

SPLA spokesman Brigadier Lul Ruai Koang told Xinhua that they have beefed up security along the major roads in the aftermath of the deadly attacks on civilians. Most of the routes affected are Juba-Nimule and the Juba-Yei roads.

Henry Enzima, a dealer in plumbing and construction equipment in Juba's Munuki surbub, told Xinhua on Friday that he will not bring in more goods from Uganda due to the insecurity.

"If the insecurity persists it will be impossible to bring in more goods. The road is not safe, and for us that is not good to transport goods," he revealed.

South Sudan's oil-dependent economy that finances 98 percent of its fiscal budget has been battered since outbreak of conflict in December, 2013 as it halted oil production from 350,000 barrels per day (bpd) to less than 160,000 bpd.

The annual inflation has since peaked 682.1 percent in October since mid-2015, with the U.S dollar exchanging as high as 78 with South Sudanese Pound (SSP) in October from 32 in April.

"We are waiting for the road to be safe then we bring in goods. Even construction materials like cement are very expensive and there are no customers," said another trader Mujule Geoffrey.

Trade Mark East Africa (TMEA) Country Director, John Bosco Kalisa, told Xinhua that insecurity along Juba-Nimule road is impacting heavily on the movement of goods and people, and that it is one of the causes of hyperinflation in the country.

"There is shortage of supplies in the country due to insecurity. Goods and trucks in Nimule are cleared in one day but cannot move due to insecurity. There has been a number of ambushes and banditry both affecting traders and truck drivers," Kalisa added. Endit