CAIRO — As a part of efforts to bolster peace between Sudan and South Sudan, the 2 governments final month signed a sequence of agreements on resuming commerce and rising cooperation in transportation and safety.
The signing got here throughout a three-day go to by Sudan’s Prime Minister Abdalla Hamdok to Juba on Aug. 21, throughout which he met with South Sudanese President Salva Kiir and different officers. Hamdok led a delegation together with the ministers of protection, commerce, transportation and international affairs, along with various senior officers from Khartoum.
Previous to the South Sudanese secession in 2011, many fundamental commodities was once transported from the northern to the southern components of the identical nation. Sudanese economist Mohamed al-Nayer instructed Al-Monitor the scenario is totally different now. Had the 2 international locations began commerce change instantly after the secession 10 years in the past, vital financial development would have been achieved within the two international locations if additionally based mostly on sound foundations, he mentioned, anticipating the quantity of commerce change between the 2 international locations to exceed $2 billion per yr.
Nayer mentioned the subsequent steps embrace opening branches of Sudanese banks on the borderline and in areas between the 2 international locations to make sure the revenues from the imports and exports are included within the commerce steadiness between the 2 international locations.
Nayer mentioned greater than 70 commodities enter South Sudan, reminiscent of sesame seeds, peanuts, salt, medicinal vegetation, onions, gum arabic, wheat and corn. Noteworthy is that Sudan is one in every of Africa’s prime agricultural international locations, with greater than 200 million feddans of arable land.
Resuming commerce might revive Sudan’s exports to South Sudan and decrease commodity costs for South Sudan residents.
As per the current settlement reached between Khartoum and Juba, Sudan’s Minister of Commerce and Provide Ali Giddo announced the formation of a technical committee made up of representatives of the Sudanese ministries involved with the plan to renew commerce between the 2 international locations. In an announcement following the assembly with Hamdok, Giddo mentioned clearance stations can be opened as a part of the settlement. He identified that the 2 international locations are working to advertise commerce by Port Sudan.
He added, “Khartoum’s shore on the Purple Sea stretches over 750 kilometers (466 miles) and has a number of seaports. It will assist South Sudan, a landlocked nation, import from overseas items that aren’t out there in Khartoum by these ports, and transport them in containers to Juba by way of land and river routes. In flip, Khartoum will obtain transit charges in international foreign money.”
Nayer added, “Resuming commerce will increase oil exports for South Sudan, whereas Sudan will obtain transit charges.”
Mohamed al-Shazly, a former Egyptian ambassador to Khartoum, instructed Al-Monitor, “Resuming commerce is important and builds frequent pursuits between the 2 international locations. Additionally it is an essential ingredient to develop bilateral relations.”
He famous that the scenario in South Sudan continues to be probably risky, including that the 2 international locations’ infrastructure continues to be poor, as Juba is a landlocked state that doesn’t have seaports and most of its exports and imports have to cross by Khartoum. Thus, resuming commerce will increase commerce exercise and make sure the transport of products between the 2 international locations, he mentioned.
In accordance with a joint statement issued by Khartoum and Juba following Hamdok’s go to to South Sudan, the 2 international locations agreed to reopen four border crossings and open financial institution branches on the border space to advertise banking transactions and improve cooperation within the oil and gasoline fields. It was additionally agreed to renew the motion of products and passengers by land, water and railway transport as of early September, and to advertise commerce cooperation as of early October, the assertion added.
Sudanese journalist Musaab al-Hadi mentioned commerce exercise between North and South Sudan by no means stopped however befell illegally. He instructed Al-Monitor, “I consider that the step to reopen the crossings will drastically cut back random commerce actions, which exhausted the 2 international locations’ economies. The settlement will definitely ease the burdens and cut back the exorbitant price of illegitimate imports and shipments. Resuming authorized commerce exercise may even stabilize commodity costs.”
He mentioned the settlement ought to “cut back the smuggling of products and the 2 international locations’ wasted revenues on the black market. The monetary stream between North and South Sudan will improve financial assets and management commerce between the 2 international locations, particularly in gentle of the poor financial situations within the two international locations,” including that improved commerce and financial ties might additionally contribute to safety and stability.
