Why South Sudan failed to integrate into EAC Customs Union
Wednesday, March 09, 2022
Juba, South Sudan.

Disparities in policy, legal and regulatory frameworks are some of the issues highlighted in a report showing why there is very little progress made in integrating South Sudan into the East African Community (EAC) Customs Union ever since the country was allowed to join the six-member bloc six years ago.

South Sudan applied to join the EAC in June 2011, shortly after gaining independence from Sudan. 

The regional Parliament’s Committee on Communication, Trade and Investment last September interacted with stakeholders in Juba, South Sudan to assess progress made in integrating the country into the EAC Customs Union, among other things.

During its oversight activity, the Committee noted several other challenges hindering the country’s progress.

South Sudan’s shift in priority activities geared towards peace and national building as opposed to integration initiatives was one other key challenge, Committee Chairperson MP Christopher Nduwayo (Burundi) said last week. 

Delays and inadequacies in domestication and realignment of the bloc’s legal frameworks into national laws due to the delayed start of the country’s Revitalized National Legislative Assembly which plays a lead role in legislating legal instruments needed to operationalize the Customs Union Protocol and other laws of the bloc, is another problem. 

Last August, 504 members of the Revitalized Transitional National Legislative Assembly, including the country’s first female Speaker, Jemma Nunu Kumba, took oath leading to their legislature becoming fully operational, in what was seen as a positive step forward in the country’s peace process.

Nduwayo also said institutional capacity constraints and skills gaps among staff enforcing Customs operations and other laws and regulations related to the Customs Union pose a challenge in terms of implementation. 

Customs automation and EAC electronic cargo tracking systems are also not in place in the country. 

"Currently, all documentation is paper-based and there is no equipment and customs information systems in place. This state of affairs poses challenges to operations between South Sudan and other partner states which are already operating automated systems,” Nduwayo said, also pointing to budget limitations. 

Besides the budgetary allocation in the 2018/19 financial year to conduct priority capacity building activities from December 2018 to June 2019, subsequently, no budget was provided for the integration of South Sudan.

Nduwayo similarly highlighted lack of coordination between the EAC and South Sudan on activities undertaken by donors in conducting capacity building aimed at supporting the country integrate.

The fact that the country’s judicial system is based on the Arabic system "which makes it challenging” for the Ministry of Justice and Constitutional Affairs to incorporate the laws and regulations of the bloc; and that the country’s Customs services are still under the Ministry of Interior yet by law the mandate of the Ministry of Finance is to oversee the National Revenue Authority which should supervise the Customs department. 

South Sudan was admitted into the bloc in October 2016, becoming the sixth partner state. After joining, Juba requested for a three-year grace period to ready itself before it becomes fully functional as a partner state through adoption and implementation of EAC instruments. 

This grace period requested to commence the implementation of EAC protocols – particularly the EAC Customs Union instruments – ended in October 2019 but "South Sudan has not formally communicated its request for an extension of the grace period.”

The Assembly on March 1 resolved to put aside debate on the Committee report so as to send a strong message to Juba after Deng Alor Kuol, its Minster in charge of EAC Affairs failed to appear in the House for nearly two years. 

Kuol later attended virtually, and gave his government’s position on a range of issues, especially emphasizing that "the government and people of South Sudan are committed to the EAC.” 

Before he spoke, however, some MPs stated that the EAC Secretariat, the executive organ, is also at fault for not properly engaging and coordinating the integration process with Juba. 

Peace determines everything 

MP Ann Itto (South Sudan) said she was "surprised, and disappointed,” to find that during the three years allowed to enable Juba align its policies, institutions and laws with those of the bloc, "we did not find a single report; neither on the roadmap, nor the six Council directives to the Republic of South Sudan and to the EAC Secretariat.”

Last year, regional ministers in charge of trade, industries, finance and investment directed Juba to expedite the domestification of the EAC Common Market and Customs Union protocols. 

In February 2021, the EAC Summit also considered a report on the roadmap for the accelerated integration of South Sudan into EAC and directed the Council of Ministers, the policy making organ of the Community, to conclude the process. 

Itto stressed that "the issue of communication and coordination is very important and needs to be checked” if the integration of her country is to get ahead. 

She stressed that "it is very odd for us to see the absence of the East African Community in South Sudan” when the latter is grappling with peace and security challenges.

Itto said: "We believe they should be there. Yes, the peace agreement was facilitated by IGAD but South Sudan is a member of EAC and, therefore, all the programmes of the EAC should take into account what is going on” in all countries of the six-member regional economic community, "otherwise, this integration will be very irrelevant and it will never be achieved.”

While MP George Odongo (Uganda) noted that as much as the political leadership in Juba needs to show strong commitment to the integration agenda by engaging the EAC, "it is a two-way traffic,” MP Thomas Gatkek (South Sudan) stressed that "peace determines everything” and his country needs the support of other EAC partner states to attain sustainable peace.

He said: "With peace, South Sudan will be able to contribute a lot in the integration process. We also have sanctions which we face as a country. The EAC needs to look into this because it is very important. If we engage the whole world I think something can be achieved.”

Mathuki stressed that "we are committed to helping” South Sudan integrate. He noted that integrating a partner state into the bloc is a process that requires resources and this is something the Secretariat has been grappling with, in consultation with the Council.

"We’ve been fundraising from development partners. We are doing what we can and to our level best,” he said. 

Kuol, among others, acknowledged that Juba continues to grapple with capacity issues in many areas and needs the bloc’s support. 

On the integration roadmap, he said: "The roadmap, I think, needs to be implemented. We have our part as government of South Sudan; the Secretariat has its part. I think both of us need to revisit this roadmap and try to see what we didn’t do and what we should do. There are shortcomings from both of us.”

"The biggest issue in South Sudan is the one of peace. We have just formed a new Parliament and this new Parliament is going to discuss and [help] implement the peace agreement. This is still a problem for us which is impeding a lot of things.”

Lawmakers also highlighted matters regarding South Sudan’s arrears to the EAC, something the Minister also said was now being examined by the new legislature in Juba. 

Available information indicates that as of June 2021 the country defaulted from making its annual remittances and has a total outstanding amount way above $27 million.

Kuol said: "We are far behind in meeting our commitment to our Community. We’ve just presented to Parliament a budget that includes all the things that you have raised.”

He said that few weeks ago, his national Parliament received a budget document that will, if approved, cater for all the country’s financial commitments to regional blocs like EAC, AU, IGAD, and others. Lawmakers are, among others, urging Juba to expedite the necessary reforms of incorporating its Customs service into the national Revenue Authority which is currently under the Ministry of Interior. 

The bloc is grappling with issues regarding Juba’s full integration a few months after regional leaders recommended that imminent negotiations paving way for DR Congo’s admission into the bloc be undertaken with speed and efficiency. MP Oda Gasinzigwa (Rwanda) observed that this could then be a good time to reflect "on where we are” when it comes to integrating new members into the bloc.