Businesses count losses amid renewed South Sudan conflict

Businesses have started counting their losses in the wake of renewed fighting in South Sudan.

Monday, July 11, 2016

Businesses have started counting their losses in the wake of renewed fighting in South Sudan.

RwandAir, Kenya Airways and Ethiopian Airlines suspended regular flights to Juba following fresh fighting between forces loyal to President Salva Kiir and his deputy Riek Machar.

RwandAir’s flight suspension on Sunday would make the company lose roughly $50,000 a week, according to Patrick Manzi, the airline’s senior manager of promotion and the head of marketing.

At least close to 15 to 20 people travel every four days a week to South Sudan mostly for business purposes.

An economy ticket price is about $500.

Commenting on the development, Geoffrey Kamanzi, the director of trade and investment at the Private Sector Federation, said that the war in Juba will have spiral effects to Rwandan business community whose businesses range from transport, ICT, service to agricultural products.

"Although we cannot immediately put figures on the loss, traders will be among the first people to be affected,” he said.

Following its secession from Sudan in July 2011, South Sudan maintained closer ties with its neighbouring countries mainly, Kenya, Uganda, Ethiopia and DR Congo.

Subsequently business minded citizens in those countries spotted trade opportunities mainly in commodities and services.

Robert Opirah, the director of trade and investment at the Ministry of Trade and Industry, expressed lesser worries for Rwandan traders in Juba, saying unless their businesses are directly targeted, not a lot is at stake.

"This is just a fight between tribes and army factions, unless the hostilities take a bit of time, business start to feel the pinch, as of now we cannot say that there are major disruptions from the business side,’’ he said, adding that a number of advisories had been issued place to assist stranded business people.

South-Sudan recently joined the East African Community. 

Talking on the side-lines of the AU summit in Kigali, the South Sudan Ambassador and permanent representative to the AU, IGAD and UNECA, James Pitia Morgan, spoke of the need to settle for peace first and allow the summit to treat the issue with specific attention.

"Our pleas to the AU is that African problems must be addressed through African solutions.

"We expect that the country will get out of this crisis, nobody wanted this turmoil in the first place, the President is determined to restore peace, he has called the army to stop the ongoing fighting,’’ he said.

The United States has urged an immediate end to the violence in South Sudan.

The US State Department said it was ordering all non-essential personnel out of the country, and condemned reports that civilian sites had been attacked in the latest bout of violence, which left at least 150 soldiers dead on both sides.

Regional leaders, including from Kenya and Sudan, urged an end to the fighting and a special summit in Nairobi of the regional IGAD bloc was planned on Monday.

editorial@newtimes.co.rw