Public Private Cooperation Fragile States

Annexe F to the

Field study report South

As part of the Country Study

Working group: Public Private Cooperation in Fragile States

July 2009

1 Supplementary Document (annex F) to the Field Research Report on Public Private Cooperation opportunities in Southern Sudan, Nov 2009 by Irma Specht & Mark van Dorp (main researchers) and Washington Okeyo, Marjolein C. Groot and John Penn de Ngong

1. Specific (sub) sectors in more detail

This annex provides, in more detail, the ongoing and potential sectors relevant for economic development and PPC in South Sudan. These are details found during the field research and are to complement the overview provided in the overall report.

Oil and mineral production The most important economic activity in Southern Sudan is oil production, which is currently taking place in the oil rich regions of Upper Nile, Abyei and Unity State. Oil was discovered in Sudan in the mid-1970s, but production did not start until 1999. The pioneer companies Chevron and Shell were forced to leave in 1984, after the outbreak of civil war. They eventually sold their rights in 1990, booking a $1 billion loss. Major players that have controlled the oil industry in Sudan since the mid-nineties include the Chinese National Petroleum Company (CNPC) and Petronas Caligary from Malaysia, Lundin Petroleum from Sweden and ONGC Videsh from India. While, at a global level, Sudan is a minor oil exporting country, China, India and Malaysia have invested billions of dollars in the country, including outside the oil industry. They consider their relations with the country not only as economic, but also geostrategic and energy-strategic successes that are worth defending. The only two (partially) Dutch companies involved as subcontractors in the oil industry are Royal Dutch/Shell and Trafigura.

Figure 4: Sudan’s oil production and consumption

Source: ECOS (2007)

2 The country is divided into 23 prospective blocks that have all been awarded, with the exception of Blocks 10 and 12B (See Oil map of Sudan in Annex). So far, the oil exploration has been limited to the central and south central regions, but the country may also have commercial reserves in the east and northwest; Sudan remains largely unexplored.

The country’s oil production will probably peak in 2008, but revenues may be maintained for another 10 years at current levels, depending on the development of oil prices (ECOS 2007). In the past, gold has been mined along the borders between Sudan and and DRC, but not in commercially profitable amounts. Illegal gold mining took place in Eastern during the 1990s, mainly to finance SPLA’s war efforts1. Uranium ores have been discovered in the area of the Nuba Mountains and in southern Kordofan. Minex Company, a U.S. firm, obtained a 36,000-square-kilometer exploratory concession in the Kordofan area in 1977, and the concession was increased to 48,000 square kilometres in 1979. Uranium reserves are also believed to exist near the western borders with Chad and Central African Republic.

Agriculture In both West and , local agriculturalists are the key players since the majority of production is for subsistence only. This is the case for both livestock and farming. Farmers may sell their excess harvest if the rains have been abundant. There are no large, commercial farms producing for the market. A number of farmers in , Central-Equatoria, have started upland rice farming but still at a very small scale. In theory, farmers can produce up to 2 tonnes of rice per year. The improved rice variety is of high quality and can easily compete with imported rice.

At GOSS and state level, the Ministry of Agriculture and Forestry is responsible for agricultural development. The County Administration is also playing a role, both in agriculture and livestock, in terms of extension services, provision of agricultural inputs and tax collection. However, it depends on the capacity of the County Departments. In County (Central-Equatoria), farmers have indicated that the government provides no extension services or training. On the other hand, in Yei County, extension workers are trained to support farmers in introducing new agricultural techniques, provision of seeds and tools and other agricultural inputs. Some of these extension workers are paid while others are volunteers.

Trade of agricultural products is taking place in two ways: 1) Farmers going to the market from their village (on foot, carrying heavy bags of produce on their heads or – in case of abundant harvest – by hired pickup or truck); and 2) Traders coming to the villages and buying from individual farmers, to sell in local or national markets (e.g. ). The majority of trade is taking place in this way because of bad road conditions and the high cost of transport to farmers.

Throughout Southern Sudan, there are a growing number of farmers’ cooperatives. In Yei County, there are 11 cooperatives of which 9 are functional. One purpose of the cooperatives is to decide which crop to grow. They are licensed by the government and hence are different from farmer’s associations and self help groups, which are not licensed.

1 D. Scroggins (2002) 3 Example: Savannah Farmer’s Cooperative The Savannah Farmer’s Cooperative is a private initiative of a number of individuals from , Central-Equatoria. The Cooperative produces various goods (e.g. groundnuts and ) on four farms, and owns 20 tractors (some of which are in broken state). It also buys Shea nut (lulu) from local collectors (women) at a price of 1 SP per kg. (Grade A) or 0,5 SP per kg (Grade B). Grade A is used for body lotion, Grade B for cooking oil, while Grade C is used locally to produce soap. The Cooperative has bought a Shea nut-processing machine, but it is not functioning due to the lack of funds to purchase a generator or power source. So, at present the oil is processed in a traditional way by women’s groups, and then sold at very low prices to traders from Uganda, who then sells to Uganda or . “The traders take advantage of the ignorance of the lulu collectors”, as one informant says.

Local markets visited in Central-Equatoria contained the following products: Product name Local name Origin Leguminous Groundnut Choromondi Local Simsim Simsim Local Local (black/white) Beans (red) Janjaro Uganda Beans (white) Ful-abugewi Khartoum Local Cereals Sorghum Durra Local (coloured) Sorghum (white) Durra Khartoum Khartoum Maize Guaya Local Rice Rus Khartoum Roots Local/Uganda Vegetables Onion Basol Khartoum/Uganda/local Okra Weka Khartoum/local Amaranthus and Kudra, Rajila, Local other green Tamaleka, leaves Kropa Cassava leave Bafra Local Okra leave Weka Local Tomatoes Timatim Local/Uganda Hibiscus Kerkade Khartoum/local Fruits Bananas Uganda (some local) Pineapples Uganda Passion fruit Uganda Papaya Local/Uganda Orange Uganda Lemon Uganda/local Melon Uganda Apples South-Africa

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Example: An early adopter in agriculture Central and Western Equatoria have a fertile soil and conducive equatorial climate that suits a great range of crops. One of the farmers visited, Mr. Bullen is a good example of an early adopter in agriculture. His enterprise illustrates the high potential for introducing new crops for commercialisation. He has been a refugee in Uganda for almost a decade, and decided to return to his ancestral land in 2003, when peace had come to this part of Southern Sudan. Mr. Bullen cultivates a medium size farm, divided into several blocks on which he rotates maize, sorghum, upland rice, sesame (simsim), beans, onions, cabbages, green leafy vegetables, sweet potatoes, tomatoes, yams, cassava and , and fruit trees and pineapples. In the swampy stream that demarcates his garden is a fishpond. The pond hosts about 1,000 Tilapia nilotica. Some of his customers include NGOs and individual farmers as well as international organisations. Inspired by his success, other farmers have also created fishponds. Currently, he uses local tools for digging his fields, but he is being trained by AAH-I in ox-ploughing. Bullen is also rearing goats and chickens for subsistence. His farm provides him with sufficient income to feed his family and relatives, to pay school fees for his children and enough extra money for family needs. However, as much as he has succeeded in cultivating his farm, he is faced by two major challenges, which also apply to his colleagues. - Pests and diseases: porcupines from the nearby caves come and dig up his cassava field at night. Unlike goats which are controlled by thorn fencing, porcupines and rats make a burrow under the fence and sneak into the garden. - Soil exhaustion: the soil has been exhausted by repeated cultivation and soil erosion from the mountainside. Due to lack of microfinance services in Southern Sudan, farmers such as this have no means to buy pesticides, fertilisers and better tools for improving their yields.

Example of value chain for Groundnuts – · Input suppliers: seeds are produced by the farmers (from the previous year’s harvest); no external inputs such as fertilizer · Producers: small-scale, subsistence farmers living scattered across Terekeka County with very limited access to the future highway between Juba-Aweil. Local feeder roads are sand or dirt roads that have not been maintained. Harvest is stored in small, thatch-grass roofed granaries which can store up to 20 bags of 90 kg. · Processors: no groundnut processing is taking place, and thus they are sold in raw form. · Traders: Traders come to buy the groundnuts in bags or buckets. A large bucket will sell at 40 SP (20 USD) at the beginning of the season, dropping towards 20 SP (10 USD) when supply becomes abundant. One woman told us that most farmers produce a maximum of 5 buckets per season. This means that they will earn 100- 200 SP (50-100 USD) per year. Traders take the groundnuts to Juba (Konyo Konyo, Customs or Munuki market). · Consumers: Juba residents are buying groundnuts for home consumption (e.g. groundnut paste as a basis for soup or sauce, cooked groundnuts which is popular as a snack).

Value Chain supporters: · Non-financial service providers, e.g. NGOs or BDS: There has been some limited support from two NGOs in the provision of seeds and tools. · Financial service providers e.g. MFI, Banks: none

5 Prices of various products Sunflower: 1 ton (= app. 22 l) is produced at a cost of 120 USD in Uganda, and sold in Southern Sudan for 4 USD per litre. In Yei market, 1 bottle of 300 ml. is sold for 1.5 SP (0.75 USD). Mahogany timber: In Central-Equatoria, the sales price of one tree is 10 SP (5 USD). A lorry can carry up to 200 trees, which makes total revenue of 2000 SP (1000 USD). Cost of transport: 1000 SP (500 USD) (hiring of lorry to Yei) Charcoal: Market prices for one large bag of charcoal: · Lanya and Yei County (roadside sales): 15-17 SP (7.5-8.5 USD) · Yei (market price): 20-25 SP (10-12.5 USD) · Kaya (market price): 30 SP (15 USD) · Juba: 55-85 SP (27.5-42.5 USD)

Prices go up during the rainy season because of the difficulties of finding fuelwood. Sheanut (Lulu): A women’s group that collects Lulu in is producing 3 types of Lulu: Grade A (used for body lotion): sales price of 150,000 USH (75 USD) for 20 l. (round jerrycan) Grade B (used for cooking oil): sales price of 25,000 USH (12.5 USD) for 5 l. (normal jerrycan) Grade C (used for soap production): sales price of 1,500 USH (0.75 USD) for 1 bar of soap (30 cm.) The women buy lulu from individual collectors at the following prices: 1 basin of sheanuts (app. 20-25 kg): buying price of 4500-6000 USH (2.25-3 USD) For production of 1 jerrycan of 20 l. (Grade A), 4 basins are needed. For production of 1 jerrycan of 5 l. (Grade B), 1 basin is needed. Honey: Sales price from farmer to trader: 5 SP (2.5 USD) for 1 l. (Yei County) Consumer’s price: In Juba, honey is sold in small bottles (300 ml.) for 5 SP (2.5 USD), which means 17 SP (8.5 USD) for 1 litre. Rice: Locally produced rice: Sales price of 2.5 SP (1.25 USD) for 1 kg (Yei County) Imported rice (Asia through Uganda): sales price of 3 SP (1.5 USD) per kg (Yei Town)

Livestock Livestock plays a significant role, with around 8 million cattle head in Southern Sudan, out of a total cattle population in Sudan of 40 million head in 20042. The division per state can be found in the table below.

2 Sources: Ministry of Agriculture, undated; http://www.sudanimals.com/englishedition.htm 6 Livestock population Southern Sudan (2004)

State Goats Cattle Sheep Total

North Upper Nile 447097 990024 650503 2087624

Unity 1784172 1188824 1511319 4484315

Jonglei 1227409 1475096 1423281 4125786

North Bahr El Ghazal 1657635 1590400 1305897 4553932

West Bahr El Ghazal 1138833 1256416 1183622 3578871

Al Biherat 1488919 1320032 1252096 4061047

Warab 1391907 1538712 1310788 4241407

Central Equatoria 1172576 882672 1286333 3341581

East Equatoria 1151487 894600 1041783 3087870

West Equatoria 1151487 679896 1188513 3087870

Source: Ministry of Animal Resources & Fisheries-Department of information and Statistics (http://www.sudanimals.com/resources/epopulation.htm)

Example: Livestock in Terekeka town There is one small cattle market in Terekeka County, Central-Equatoria. Prices fluctuate greatly since the market is an auction, but a strong bull can be worth around 1500 SP (750 USD). Traders pay an annual fee to the Government of 95 SP (47.5 USD). For each transaction they pay a receipt of the government for 20 SP (10 USD) in Lenkango and 30 SP (15 USD) in Juba. Cows are sold in Juba and are also used for meat, and to some extent, for milk (low production because of lack of pastures). In addition to the cattle market, there is also a small goat market. As a pick- up truck load of goats left for Juba, the owner said he was going to barter his goats for fuel.

Forestry Forest plantations were first set up in the 1920s under British colonial rule. They mostly consisted of teak and eucalyptus species. Some trees have even been planted as far back as 1919 by the Church Missionary Society (UK). After the second war in 1983 broke out, these Reserves were no longer maintained, and people did not exploit these forests because of insecurity, although they were sometimes used as hide-outs for citizens. During the war period, a large number of timber companies from Sudan, Uganda, India, and South Africa were active in Central Equatoria: · Logotech · SEI company · Erimu Ltd.

7 · Techna Sawmills · SM Export & Trading Co. · Ezira · Integrated Timber Industries · Eastern Seas Shipping Co.

They were solely harvesting for exports to various destinations including India, South Africa and Europe. Logging companies have recently been invited to apply for forestry licenses in Central- Equatoria State. According to local authorities, fourteen companies sent in their applications, but only one company was awarded a licence (see Box under Existing cases of PPC).

Non-timber forest products are harvested for local use and to some extent for trade as well: · Shea nut (Vittalaria Paradoxa) – Shea nut (locally known as Lulu) is growing abundantly all over Southern Sudan, with high concentrations around Kajo Keji (Central-Equatoria), Mundri (Western Equatoria) and Wulu ( State). In some areas, Shea nut tree density reached up to 70% of the natural forest. · Gum Arabic: The gum is tapped from two species of Acacia tree, namely Acacia senegalensis (white bark) and Acacia seyal (red bark). Many local villagers in Southern Sudan are not aware of the economic value. In Terekeka for instance, Acacia is cut and used for fencing gardens and homes for its long and sharp thorns. It is also used as timber and firewood. There is definitely potential to extend production in these areas. · Lalok (local name for Balanites aegyptiaca): It comes from a thorny, thin-leaved, evergreen tree found in the semi arid zones of Southern Sudan. The fruit contains an outer part and a seed. The seed can be pressed into oil for cooking. For local consumption, its outer shell is used for animal feeds; the soft flesh is the main food, either as porridge and soup when boiled. It can also be eaten raw as it is plugged from the tree. In terms of medicinal value, Lalok is used in the treatment of abdominal disorders such as constipation, worms and bilharzias. · Honey production: There is high potential for export to other African countries and possibly overseas as well. According to experts, Sudanese honey is superior in quality to Kenyan honey because of the rich biodiversity. The honey is sold at 5 SP (2.5 USD) per 0,5 litre.

Other fruits that need attention are known locally and are also used as food and herbal medicines. An example is a fruit locally known as Marjanga fruit (thorny, orange), used for home consumption and to treat malaria.

Example: Lulu Works: leading the way in Shea nut production “There are vast quantities of lulu trees in Southern Sudan” Shea nut (Vitellaria paradoxa) is the single most important non-timber forest product in Southern Sudan.

The leading company working with Shea nut is Lulu Works, with offices in Juba and Nairobi, Kenya. In 2001, the Lulu Livelihoods Program began developing the market potential of lulu in Southern Sudan, with support from USAID. In 2006, the program supports 36 Lulu Works processing centres, owned and operated by women that produce Shea butter moisturiser and soap, as well as a substantial, sustainable, local source of income for 850 Sudanese women, their families, and their communities. Collection points and larger processing centres with machines for cracking the hard nuts are located in Yei, Kajo Keji, Mundri East and West, Lopit, Mvolo, , Ceubet, Tonj, and Wau. Lulu Works was set up with support of Medic, a Nairobi based NGO. 8

One of the groups visited is based in Kajo Keji County. The women’s group is called Doket Na Ngun (or “Gift from God”), consisting of 20 women. It was set up with support of NPA (Norwegian People’s Aid). On an annual basis they produce 60 jerry cans of 20 l. of Grade A Shea nut (total production 1200 l.), as well as 300 jerry cans of 5 l. (total production 1500 l.). There is much more Shea nut to be harvested, but a lack of labour prevents from collecting the complete harvest.

During the visit, there were tens of jerry cans waiting to be sold, even though they had been produced almost a year ago (April 2008). This was mostly due to a lack of business skills, which seriously hampers the economic growth of this enterprise.

Source: interviews with women group in Kajo Keji; Lulu Works in Juba

Example: Forest products as survival strategy A few kilometres outside Terekeka Town, we met with an elderly woman who was collecting dried Lalok (Ballanthyne egyptica) fruits in the bush. She lives in a village around 20 miles away, but left for Terekeka to collect, process and sell Lalok oil and seeds, to get some money to buy food for her family. While she was interviewed, she complained several times that she was hungry. She would stay at least a couple of weeks working many hours a day for a very meagre income, but at least this was more than she could earn from her home village, which has no connection to the road.

Example: Honey export by Kenyan company Honey is also a potentially interesting sector. Honey Care Africa, a Kenyan company is currently exploring the potential for large-scale honey production in Southern Sudan. First quality assessments have revealed that the quality of honey in Southern Sudan is superior to that of Kenyan honey. This is due to the relatively untouched ecosystem in which the beekeepers are operating, and the low use of pesticides in agriculture. AAH-I, an international NGO based in Kenya, has been setting up honey producer groups in Wonduruba, Central-Equatoria, since early 2006. This has not been without problems, but it seems that production volumes and qualities seem to have improved. Similar groups will be set up in other counties, including Yei County, where a group of 3 farmers has started to operate improved beehives. Each farmer received 2 beehives. Their activities began in 2008, and they have not yet sold any honey. One constraint is the lack of suits to harvest the honey. A limited number of suits were provided for the four farmer’s groups involved in the project, but according to our contact, the suits are not to be found when he needs them. The number of beehives can also be increased, since there are more bees than the 6 beehives that this group is currently using can accommodate.

Source: http://www.honeycareafrica.com/

Hunting Hunting is one of the major occupations for villagers in Western and Central Equatoria, although wildlife is not as abundant as it once was. According to local wildlife authorities in Kajo Keji, Central-Equatoria, it was announced recently that hunting licences are obliged for any game hunter in order to curb rampant poaching and hunting. In reality, the villagers do not bother to pick up any application form for that matter and illicit poaching is still ongoing on a large scale. According to one hunter in Terekeka County, the only animals common in the area are dik-dik, gazelle, bush rat, and squirrel. All the big animals like elephant, buffalo, giraffe, zebra, etc. that used to roam the area before the war have disappeared. He explained that the sound of guns

9 during the war had scared away wild animals. In addition, they were targeted as a major food source by soldiers. Even today, many hunters still use guns to shoot animals.

Example: Carpentry workshop

In a village near Kajo Keji in Central-Equatoria, a carpentry and joinery workshop is operating, called Togole Ta, which means “to teach”. It was created in 2005 by 3 young men with support from CHF (Cooperative Housing Foundation) and has steadily grown to 9 members at present. The wood is bought from individual tree-fellers, who have a permit from the county authorities to fell trees. Final products include beds, tables and chairs. The sales price for a bed is 140,000 USH (approx. US $80), and for a table it is 180,000 USH (approx. $100). Some of the workshops major customers included international NGOs such as DRC (Danish Refugee Council), but demand has decreased. One of the key challenges is the lack of tools; some of the Indian made tools that were donated by CHF have broken down after very little time. If they had access to micro-credit they could buy new tools and expand the capacity of the workshop. Apart from this workshop, there are 2 other carpentry workshops in Kajo Keji County.

Infrastructure

Road construction

At present, the major artery roads in Southern Sudan are: o Lokichogio (Kenya) – Nadabal – Kapoeta – - Juba o Juba – Mundri – Yei o Juba – Mundri - Maridi – Yambio o Rumbek – Wau – Awiel - Northern Bar el Ghazal o Juba – Bor – o Pochalla – Pibor – Bor – Terakeka - Juba

There is a program for constructing rural access roads using the Multi Donor Trust Fund (MTDF). The responsibility of constructing rural access roads lies with the state governments but the central government (GOSS) has taken over in some cases due to state government’s slow response or failure to kick-start the process. Government contracted consultants are carrying out feasibility studies in all the Southern Sudanese states on how to upgrade the roads from gravel surface to bitumen (Aspen) and construct new roads where necessary. The study covers feasibility issues, design and procurement, up to the development of contractual documents. The Ministry of Transport and roads will advertise the tender between March and April 2009 to select the contractors.

Road construction in Central Equatoria The current state of most roads in Central-Equatoria is not good although there is visible effort to maintain the existing ones. The main artery roads from Juba to Nimule (Ugandan border) were recently made. The Yei – Juba road, which is one of the main transport routes between Uganda and Southern Sudan, has been made for about 70 miles from Yei by Kenyan construction firm Civicon. The remaining 30 miles into Juba is in very bad shape. This section of the road was not completed because the budget allocation was exhausted before completion. It is expected that during the rainy season, travel time will be doubled due to the bad condition of this road.

10 To the north of Juba, a highway is currently being constructed between Juba and Aweil, called the Aweil High Road. At present, the highway has reached up to the town of Terekeka. It is a 15- metre wide, all-weather road made from marrum. Construction is contracted to a company from Khartoum called Ayat. The 50-mile stretch of road that is currently being built (Juba-Terekeka), goes straight through an area without any settlements, whereas most people in Terekeka County live close to the Nile, connected by a very old, deteriorated road. The new highway does not seem to have added much value to the rural population, since they now have to walk 1 hour to get to the road. Villagers expressed discontent with the new road because of this.

Another all-weather road is currently being constructed between the relatively small towns of Kajo Keji and Juba along the West Bank of the Nile, see box below.

Example: Limbe-Kajo Keji Road (Central-Equatoria) The road between Limbe and Kajo Keji was cleared of landmines in August 2008 almost four years after the CPA. The road rehabilitation started immediately after that and finished by the end of 2008. In one village, the Payam authorities stated that trade has grown substantially as a result of the road rehabilitation and that it has tremendously improved access to other areas and markets. Some of the products traded in this area are charcoal, construction poles, lulu (Shea nut) oil and mahogany. These products are however only traded at subsistence or domestic level and are thus not sold beyond Kajo Keji.

Road construction in Western Equatoria

There are a number of local and foreign construction companies engaged in construction and maintenance of roads in Yambio County, Western Equatoria. One such company Athur Wic (a local Sudanese company) is currently rehabilitating the air strip, and building feeder roads and bridges within Yambio County. They started working in 2007 and use local people as a source of labour and skilled manpower. Another company involved in construction works in Yambio is Budwe (mixed ownership). Both companies were subcontracted under the government-funded Rehabilitation and Improvement Programme. Most of the equipment and construction materials are imported from Uganda due to cost considerations.

Road transportation Road transportation is particularly used for freight and passengers. Freight is especially common particularly when transporting imported goods from across the borders and distributing them to various destinations in Southern Sudan. For commercial transportation of goods between Southern Sudan and neighbouring countries like Uganda, Kenya and DRC, trucks are used. To transport dry goods, containers are most widely used. Petrol is transported using specialized oil carriers, while food, vegetables, fruit, livestock and other natural resources (timber, charcoal) are transported in open trucks covered with plastic sheets. Perishable goods like fish make use of special trucks loaded with ice.

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Example: Toll levies collection at Sudan-Uganda border A visit to the border town of Kaya revealed that there is road toll levy collected, although the transport companies do not get the intended benefits. This toll is only collected from foreign registered vehicles that are driving into the country. The toll charges are:

Weight of the vehicle (Tonnes) Toll amount (US$) 1 – 7 10 8 - 10 30 11- 20 35 21 – 30 40 31 – 40 50 41 and above 60 The road toll section at the border town indicated that they collect roughly US$ 20,000 in a month. Further enquiry concerning the usage of road toll indicated that there is no proper system for banking, using and accounting for the money collected. This was confirmed during a discussion with government officials who were not aware of a system of managing the toll revenues.

Yambio which is the capital of the Western Equatoria state is connected by road to several destinations within South Sudan including Juba, Wau, Tambura, Maridi and the Congo border town of Nabiapai. Public vehicle transportation which should be the preferred means of mass transport system is totally lacking in Yambio. As a result, individuals have resorted to walking, cycling or using motor bikes as an alternative. Motor bike system is developing not only as the public transport system of choice but also as the preferred individual transport system for those who can afford it. The motor bikes are hired as taxis by individuals sometimes carrying two passengers each. This system of transportation is very risky since besides being ridden at extremely high speeds with no regard to traffic rules or even common sense; both the riders and the passengers do not wear helmets. Unofficial death toll from Senke accidents is very high – over 500 in a month. The authors witnessed an accident in the town due to recklessness of the Senke in which seven people were involved, one died on the sport and three others later died in the hospital. There are very few commercial vehicles for transporting goods in Yambio. These consist of occasional lorries who deliver imported goods from across the borders in Uganda, Kenya and DR Congo. Literally all of them return empty except a very small number that carry teak for export.

Air transportation Apart from Juba which has a bitumen surface runway, the other towns have airstrips. These are Yambio, Nzara, Maridi, Tore, Tambura, Mundri, Yei, Kajo Keji. The airstrip in Nzara is slightly bigger and is able to land slightly bigger aircrafts. The other airstrips are small and mainly frequented by both relief and commercial airlines. The main relief airlines are WFP and UNHAS which operate scheduled flights to most of these airfields or regular days during the week. Construction work is going on in some airfields like Yambio. The airstrip’s runway has recently gone through rehabilitation to improve the gravel runway. Rehabilitation for planes and car parks has however stalled due to lack of adequate funds. Even after rehabilitation, the airstrip cannot be used when it rains since it is still unsafe due to wet conditions.

12 Electricity There is however some hope since the government is currently installing a power generator which will partially serve some facilities in the major towns. This though is a temporary solution but is likely also to be unreliable due to high cost and sometimes even unavailability of petroleum products in Yambio. There is only one petrol station which is located about 5 kilometres away along Yambio – Maridi road and sells a litre of petrol at US$ 2½. When asked about the government’s future plans regarding power, the commissioner had no definite answer but said that the possible source of water in Yambio and neighbouring counties is River Sue, which is about seventy five miles away, but he was not sure if it has falls that would be needed to generate hydro power.

In Kajo Keji County, a French company (possibly Crédit Agricole) has been contracted to build a hydro-electric power plant at the Beden Falls, in a biodiversity rich area near the Nile River.

“The Ministry of Energy should focus its attention on developing hydro-electric power stations in the South and there are already natural sites for building hydro-electric plants, such as Fulla Rapids and Beden Falls on the River Nile. According to a report prepared by MEFIT Consultants, a group of companies based in Rome, Fulla Rapids can supply the whole of South Sudan, some parts of Northern Sudan and the neighbouring countries with electricity. The same applies to Beden Falls near Juba.” Source: http://www.sudanvisiondaily.com/modules.php?name=News&file=article&sid=373

Irrigation In more recent terms, some very small scale all year irrigated gardens exist at major towns, producing vegetables and fruits. These activities are alongside with the successful trials carried out in the 1970s by the department of Agriculture of the Regional Government of Southern Sudan (1972-1983) on the experimental irrigated farms of rice, cotton, and sorghum in Malakal. Detailed calculations were done on specific yields of various crops as a result of irrigation which showed the figures below.

Case study: Viability of Irrigation projects Calculations of irrigation requirements for the experimental farms, to supplement rainfall resulted in a cropping area of 0.56 feddan (0.23 ha) per 10,000 cubic meters. Of irrigation water, compared to 0.27 fed (0.11 ha) per 10,000 cubic meters of irrigation water at Medani. Therefore, 1 fed (0.42 ha) requires 1.8*10,000 cubic meters of irrigation water in Southern Sudan and 3.7*10,000 cubic meters in Central Sudan. As part of the overall plan for irrigation development in Sudan before war broke out in again in 1983, it was projected that about 270*10,000 ha (648*10,000 fed sq) will be brought under management for agricultural production by the year 2001. Among the schemes considered then was Mangalla Sugarcane Scheme in Central Equatoria, Penko (Penykou) for different varieties of crops in Jonglei and Aweil Rice Pilot Scheme in Northern Bhar el-Ghazal.

Finance sector - Laws Major foundation laws in support of private sector development, including banking laws, investment law, bankruptcy laws and contract law have been reviewed by the government and anchored in the constitution. This not withstanding though, the financial management in Southern Sudan is highly risky due to lack of FM systems and inadequate FM capacity in the Ministries.

13 The fiscal and financial services are anchored in the interim constitution of Southern Sudan, which provides for enacting laws and regulations for the sector. The interim constitution, apart from laying the framework for ministry of finance also states inter-alia that “A Southern Sudan Fiscal and Financial Allocation and Monitoring Commission shall be established to ensure transparency and fairness in allocation of funds at GOSS and individual state levels”. There are also provisions in the constitution regarding sources of revenue for GOSS, establishment of banking systems and other facilities for the management of monetary and fiscal systems in south Sudan.

The sources that GOSS obtains its revenue from are identified and fused in the interim constitution as: Allocation from National Revenue Fund through issuance and printing of currency as determined appropriately by the Central Bank of Sudan (CBS); State revenue sources through taxes, excise duties, levies, minimum of 2% net oil revenue from oil producing states, grants, and loans borrowed; Oil revenue (50% of net oil revenue derived from oil producing wells in southern Sudan; Forty two percent net oil revenue from the oil Revenue Stabilization Account in accordance with the CPA; Taxes of GOSS which do not encroach on GNU powers; Service charges of GOSS; enterprises and projects of GOSS; grants in aid and foreign financial assistance; taxes and levies on SMEs; excise duties on luxury goods within south Sudan and Personal income tax. Additional sources are 50% of national oil revenue collected in south Sudan.

Major Commercial Banks

Nile Commercial Bank The Nile Commercial Bank (NCB) was started by SPLA in April 2003 as the first indigenous commercial bank in south Sudan. It operated without a license until the CPA time when it was licensed under the (BOSS). The aim of starting the NCB was to improve the economic activity in South Sudan since there were no commercial banks in the SPLA controlled areas at the time. The NCB used to give loans for school fees, business, house construction, car vehicle purchases, motorcycle etc to the citizens of South Sudan until 2006 when GOSS stopped it from giving out loans due to low recovery rate. During this period, in addition to the headquarters in Yambio, NCB also had branches only in Yei and Rumbek. The branch in Juba which became the headquarters was opened after CPA. After the CPA, NCB was mandated to implement the banking component of CPA which specified two banking systems – Islamic and commercial as well as the creation of Bank of South Sudan and the its relation to the Central Bank in Khartoum. The BOSS operates more like a subsidiary of the central bank in Khartoum since the governor of BOSS is the deputy governor of Central Bank in Khartoum in much the same way as the government is structured.

Before loans freeze, some of the main economic activities that traders used to borrow money for are: Transportation; Construction of houses, Importation of goods from china where money would either be transferred directly from NCB in South Sudan or through Stanbic Banks in either Kenya or Uganda for traders who maintain their accounts outside South Sudan.

Kenya Commercial Bank This is the second largest commercial bank in Southern Sudan. It is jointly owned by a Sudanese national and Kenya Commercial Bank a corporate entity in Kenya. The mother bank in Kenya has regional branches in Tanzania, Uganda, Rwanda, Burundi and international branches in the UK. In Southern Sudan, the bank opened its doors about two years ago and has had up to three branches in three states. KCB are in the process of opening branches in all the ten states before the end of 2009. The business support services offered by KCB include extending loans to

14 businesses in line with prudential guidelines of BOSS i.e. maximum of 25% of its US$15 million capitalization per individual loan. KCB also offers other conventional banking products like savings, salary processing, foreign exchange, transfers etc. The current bank interest rates are 5- 10% for US$ and 14 – 20% for SDP depending on risk level of the borrower.

Remittances Remittances play a significant role in Southern Sudan’s economy3. There are two types of remittances – inbound and outbound. The ratio of inbound to outbound was at least 160:1 and consistently showed an increasing trend over the 2000 – 2004 period from about US$640 million in the year 2000 to US$ 1,403 million in 2004. This trend however changed drastically in 2005 when only US$ 1,016 was remitted into the Southern Sudan. This was a drop of US$387 million from the previous year – 2004. In 2005 the trend was reversed and is significant in the calendar of Southern Sudan since it is the year the CPA was also signed. Many Southern Sudanese started streaming back into their country following the CPA thus reducing the amount of money that was being sent from abroad. The outbound remittance has been not only much less but also showed a pattern which oscillated between a peak of US$ 4 million in 2000 and 2002 and a dip of US$ 1 million in 2003. Other years recorded outbound remittances of US$ 2 million. The inbound remittances made a significant contribution of 2.7% to the GDP of Southern Sudan. These figures indicate that while the economy of Southern Sudan used to depend to an extent on remittances from abroad, this situation was reversed immediately after the CPA.

Remittances are nevertheless still a major source of several Southern Sudanese families. A huge number it is believed, of southerners is still in the Diaspora and it is believed these remittances will continue for sometime in the future. The above information is based on recorded data only. The unrecorded flows of remittances through formal and informal channels are believed to be larger making the impact of remittances to GDP possibly much greater. Economic activity in Southern Sudan has nevertheless improved tremendously in the post CPA period with a growth rate of about 8% in 2008. This may mean that the bulk of the remittances have been replaced by money being produced within the territory which makes investing in Southern Sudan a viable venture.

Micro-finance

Example: Sudan Microfinance Institution Of the seven institutions, SUMI is the largest and are in the process of opening a branch at Wau between March – April 2009. In addition to the existing branch network, SUMI also offers discrete services (only on certain week days) around these towns i.e. through 7 offices in Yei; 2 in Yambio; 2 in Rumbek; 3 in Juba and 2 in Maridi. The institution has products for loans with group guarantee as collaterals, individual loans and salaried people. It also offers money transfer services locally in collaboration with Afripayment Company. The services are done through a computer server where details are filled and stored in the server and then checked at the receiver’s end of the transfer. The management is currently developing the international transfer product which is targeted for roll out later in the year. A savings product is also being developed and the kick off is slated for early 2010. The government has already passed the necessary legislation to regulate this product.

The SUMI was set up for agricultural lending from an assessment that was done in 2003 but since then the experience showed that it is difficult to manage such a product owing to several

3 Migration and Remittances Factbook by Dilip Ratha and Zhimer Xu, Migration and Remittances Team, Development Prospects Group, World Bank. 15 risks like potential loss of crop due to poor weather etc. This can only be done if there is prudent underwriting for such risks before it can be viable for the MFI. The institution is however examining the possibility of developing loan products for commercial agriculture in several areas including honey making, groundnuts through mechanized methods and other large scale farming activities.

SUMI has over 8,000 clients out of which 38% are women and 62% men. Over 80% of SUMI’s clients deal in consumer goods. So far the institution has not started lending to brick makers and charcoal burners due to environmental considerations. Analysis shows that over 90% of the individual loan category takers use it for house construction and renovations, which are non commercial. So far there is no manufacturing activity among SUMI’s clientele. It is only in Yambio where SUMI has disbursed manufacturing loans for soap making.

In addition to conventional financial services, SUMI also offers other services like: - Induction and record/book keeping and training to those who take group loans - Has already submitted a proposal to SMDF for approval for BDS training, which has yet to be approved.

Modern banking heavily depends on ICT as a facilitator and an enabler. New banking concepts like m-banking and m-payments can only be achieved in an environment where telecommunications infrastructure is well developed. The absence of modern telecommunication infrastructure makes it difficult to provide even basic services like inter-bank or inter-branch transfers which are also a major hindrance to movement of cash across the country. South Sudan is largely a cash based economy as the checking system has not been implemented.

Some products which the market needs but cannot be implemented are: ATM, cheque books, local money transfers etc. It is for example more expensive to transfer money locally (3%) than internationally (1.75%). Although the reason offered for this is that the government wants to attract foreign organisations to transfer their foreign money through the banking system instead of manually. Modern banking heavily relies on telecommunications to provide appropriate products and services to its clients. Some products and services that rely 100% on reliable telecommunications are ATMs, transfers, online banking, and M-banking. The current status of poor telecommunications infrastructure and systems in Southern Sudan will have to be improved greatly in order for the banks to introduce modern banking concepts. Another challenge is shortage of talent and skills which forces the banks to rely on expatriate staff while they train local staff.

As the major micro-finance institution, SUMI faces a number of challenges: § Start-up capital was obtained from USAID which ran out in September 2007. Had no capital from then until November 2008. This affected the perception of people who thought the institution was collapsing hence some stopped patronizing the MFI. § Got additional funding of up to $400,000 from BOSS under the umbrella of SMDF (Sunda Microfinance Development Facility) at interest rate of 3% § Have now already applied for $1.5 million from USIAD through GEMS (Generating Economic Development through Microfinance in South Sudan) § All SUMI’s assets are still under the ownership of USAID § SUMI cannot take loans from banks for onward lending due to high interest rates – banks charge base lending rate of 18% and above which would make SUMI’s loans too expensive to its clients

16

According to the director of NCB the bank has 3 major challenges: Lack of Cash, lack of Liquidity and skills of personnel. The training of personnel is ongoing but it is slow, skills levels are low, even of those who have graduated university. The liquidity is the real killer: “ We do not have enough cash combined with the inability to move cash quickly, there is no access between branches and transport is expensive. We fly in cash! This is a cash society, cheques are being introduced now for the first time”. In addition, communication is a major problem. Bookkeeping is done manually and only now are computer systems being slowly introduced. Additionally, telephone contact between branches is extremely limited and costly.

Southern Sudan is also currently suffering serious liquidity problems in hard currency as a result of the shortfall occasioned by Southern Sudan’s obligation to remit its external payments which together with lack of well developed export capability leaves it with very little hard currency for that can be channelled towards trade issues. As such many organizations cannot import goods. This situation is could also be a direct impact of lack of capacity at BOSS level.

Telecom

Fixed lines Though the telecommunications industry, led by Sudan Telecommunications Public Corporation (STPC) is over sixty five years old, only the major towns of Juba, Wau and Malakal had a brief taste of the benefits of telecommunications through the fixed telephone line (Sudatel) and the Sudan Television services. These telecommunication services were mainly connecting the offices of the then High Executive Council (HEC), a few business enterprises and homes of prominent Southern personalities. Despite many development plans and efforts, the state of telecommunication sector in the country remained extremely poor up to 1994, by that time; Sudan had one of the lowest penetration rates even by regional standards. Sudatel maintained a monopoly on the telecommunications until April 2005, when a United Arabs Emirates (UAE) firm, Canar Telecommunications was awarded a license. Its main activities include telecommunication services, high-value broadband internet services and IT solutions. The company’s wide range of products and services include voice, data, internet and multi media services, VSAT, web hosting, IP Centrex and VPN. Gemtel and Vivacell have also been licensed to offer fixed facilities by the GOSS Ministry of Telecommunications and Postal Services, but thus far do not offer these facilities.

Mobile networks Sudan's first mobile phone operator, Sudani, began in 1999 and has established a mobile phone network that reaches 17 major cities in Sudan, including the capital Khartoum, serving 130,000 subscribers. Later on, the market was further opened for foreign investors. The entrance of heavy weight players like Zain (formerly MTC, present in Southern Sudan since 2008) and MTN (formerly Areeba, which through its legal entity Bashair Telecom won the second GSM license in Sudan in September 2004), signifies that this market is promising and growing rapidly. After the introduction of Gemtel in Southern Sudan in 2006 (only licensed to operate in the South, using the Ugandan gateway with a subscribers base of 50,000), Zain and MTN (2008) have also begun penetrating the Southern Sudanese telecom market. MTN has even set up its own operation centre in Juba in February 2009, in addition to their base in Khartoum. Another recent arrival on the Southern Sudanese market is Vivacell (part of Network of the World, which also offers internet services), which company also has only been licensed to operate in Southern Sudan.

17 Satellite telephony Thuraya, the UAE-based Satellite Telecommunications Company and Sudatel, Sudan's national telecommunications company, have formed the joint-venture Thuraya-Sudatel. The joint venture will extend Thuraya services throughout Sudan, providing mobile, fixed and rural satellite telephony. In addition to distributing mobile services, the joint-venture intends to provide satellite based land phone services telecommunication access to remote areas.

Fiber optic network Sudatel expands its satellite EarthLink facilities and has built a fiber optic network. Sudatel fiber projects include: Sudan - Egypt Fiber Line - 350 km and Sudan - Ethiopia Landline Project.

Sea Cable projects The fiber optic cable project is linking Port Sudan with Jeddah, Saudi Arabia, under the Red Sea, and started operation in December 2006. Moreover, Sudatel signed a contract to establish and operate the continental sea cable (the Eastern African Submarine Cable System (EASSy), a multi-partner fiber-optic cable project that will connect 21 African countries and the rest of the world and will improve access for over 250 million Africans. The EASSy cable will run 10,500 kilometres from the continents southern tip (Cape Town) to the African horns, which shall link South Africa’s telecom network with that of Sudatel. The EASSy cable will be extended to the Comoros Archipelago at Grand Comoro and Mayotte. A further 13 adjoining, land locked countries will also be linked to the system as terrestrial backbone networks are completed by the relevant participating parties in Botswana, Burundi, the Central African Republic, the Democratic Republic of Congo, Chad, Ethiopia, Lesotho, Malawi, Rwanda, Swaziland, Uganda, Zambia and Zimbabwe.

Network coverage The coverage of telecom services thus far is only the vicinity of state capitals. However, all major telecom companies, as mentioned above, are competing for new markets and attempting to extend their services to more remote areas. Prices of offered services vary, for example, Zain provides locally cheaper calls, but for calls abroad, Gemtel is cheaper. The GoSS Ministry of Telecommunications and Postal Services is offering to “pave the way” (i.e. provision of land and licenses) for telecom companies willing to invest in remote areas not covered by telecom services yet. It envisages the establishment of a ‘Universal Fund’, which should be set up in partnership with government/operators/international donors/ international organisations. The Fund would fund “ICT community centres” that provide training for new ICT users. Telecom companies are said to have expressed their interest in a certain Fund. However, a subsidy as an incentive to invest in these non-profitable areas is requested.

Spin-offs The arrival of these telecom companies has boosted local economic activities. Not only information on prices of products that are (to be) sold on diverse markets is currently obtained through the use of mobile phones (in order to select the most profitable market), the availability of telecommunication in general has enabled information gathering and more informed decision making. Clients and service providers are much better connected (e.g. taxi drivers can be informed of new waiting customers, people who offer their services can now have a number on which they can be easily reached) and the latest information on the security situation can be exchanged easily. Examples of telecom spin-offs are numerous. Since the arrival of mobile telephone, tiny airtime selling shops were added to markets all over Southern Sudan, together with small shops selling and repairing new or used mobile phones and/or offering phone charging services. Other spin-offs that rapidly arise are public phone shops, aimed at those not in the possession of a mobile phone. Additionally, many of these are run by women.

18 Rules and regulations

The National Telecom Corporation (NTC, based in Khartoum) was established in 2001 and replaced the National Telecom Council. It acts as the regulator and in South Sudan (Juba) its regulatory matters are represented by the Ministry of Telecommunications and Postal Services (Juba). A Telecom Act was issued in 2001 with the purpose of improving the telecom sector.

A separate autonomous Regulatory Commission under the Ministry of Telecommunications and Postal Services is to be established by the Southern Sudan Communications Commission Act. This Act establishes a regulatory environment designed to promote investment in both Telecommunications and Postal sectors. The Act also details the rights and obligations of investors and their service consumers. Functions of the Southern Sudan Communications Commission are amongst others licensing of operators/service providers, regulation of tariffs, enforcement of rules and regulations governing the operators and setting interconnection guidelines between the operators.

A Telecommunications and Postal Services Sector Policy Framework and Workplan to promote and develop the ICT sector was formulated in 2008 by the Ministry of Telecommunications and Postal Services of the GOSS. In this document, the government recognizes the crucial role of telecommunication in supporting social and economic development. It is thus the government’s policy to ensure equitable and easy access to telecommunication services by the citizens of Southern Sudan in order to realize this goal. In addition, the government recognizes that a purely commercial approach in the provision of telecommunication services could marginalize the majority of the citizens, especially those living in rural and remote areas; and has therefore made universal access, supported by appropriate interventions, a key objective.

Membership telecom bodies

South Sudan has obtained membership of the following telecom bodies:

· Since October 2008 South Sudan has become a member of The Commonwealth Telecommunication Organization (CTO) in London, an international development alliance between Commonwealth and non-Commonwealth governments, business and civil society organizations. · South Sudan has also joined the largest UN ICT body, the International Telecommunication Union (ITU), where South Sudan was represented at the meeting in Turkey in 2008 for the first time.

Internet Sudanet introduced Internet in Sudan in 1997, a private company partly owned by the regulator National Telecommunications Corporation (NTC), with a share value of 35%. In 2001, Netforce, a Kenyan owned company was licensed to offer VSAT services in Southern Sudan. Bilpam Telecommunications, a Southern Sudanese owned company formed an Internet Service Provider (ISP) and basic Information Communications Technology training centre in 2005. In 2006 it was licensed to start its services. Canar launched wireless and broadband services in 2006. The Sudanese company Giant Technologies started offering VSAT and Thuraya services in 2006. Other Sudanese companies offering ICT services are Yojo Communications and Pyramid Electronics, and are operating in Southern Sudan since 2007.

19 Internet Usage and Population Growth:

YEAR Users Population % Pen. Usage Source 2000 30,000 36,841,500 0.1 % ITU 2003 300,000 35,035,677 0.9 % ITU 2008 1,500,000 40,218,455 3.7 % ITU

Source: http://www.internetworldstats.com/af/sd.htm

Juba counts around four official internet cafes (and many non-registered services), which were initially mainly used by expatriates and local business people, but over time become popular amongst a wider public. Services offered are internet (approximately 10 Sudanese pounds for 1 hour), printing (approximately 2 Sudanese pounds per page), scanning (approximately five Sudanese pounds per page), typing (approximately 3 Sudanese pound). Bilpam is the most known internet services provider.

Yambio counts three internet cafes. Internet services cost 12 Sudanese pounds per hour (2 pounds per 10 minutes). In Yei, internet providers are Call Keys (Kenya), Colton Y (Juba) and Vivacell. There are three internet cafes in Yei, whereas all NGOs and some offices have their own internet facilities.

Southern Sudan appeals for investment in ICT sector (New Sudan Vision, 10 October 2008)

Major General Gier Chuang Aluong, the Minister of Telecommunications and Postal Services announced that Sudan was ready for business. Aluong was speaking to the news agency at the sixth annual Commonwealth Telecommunications Organisation (CTO) forum this week in Nigeria’s capital, Abuja. Media reports say Southern Sudan is not yet issuing operating licenses for telecom operators for voice, but the government is open for those who can come and invest in the Internet, data and infrastructure. The minister added that the country would grant telecom licenses in the next three years after a proposed referendum.

“The business vision for the new Sudan centres on the concept of decentralization. With strategic deployment of ICTs, remote areas of Sudan can access information to open opportunities and improve all forms of service delivery,” Aluong said. Aluong pointed out that some of the challenges are daunting.

“Not only are equipment and technology resources costly, but as an emerging economy, Southern Sudan still lacks a lot including the resourced institutional arrangements, sufficiently trained and skilled personnel, adequate physical infrastructure, and an effective regulatory as well as policy framework,” he said.

Most operators now use their own gateways, but a government-owned international gateway is under construction, he said. “Given the early state of telecoms development, the variety, cost and quality of service is reasonable, yet there is significant room for improvement,” he said.4

4 Source: http://www.itnewsafrica.com/?p=1410

20 Trade In Southern Sudan, trade flows are mainly going in one direction: from DRC, Uganda or Kenya to the major urban centres (Juba, Yei, and Yambio). The majority of traded goods consist of imports from these countries, while very little export is taking place. The major trade routes are the Kaya-Yei-Juba road and the Nimule-Juba road.

Case: Konyo-Konyo Market, Juba This is the biggest and oldest market in Southern Sudan. It is fed by both imports and local produce (minimal) of many varieties, of which agriculture and textile dominate. Over 90% of the merchandise comes from Uganda, Kenya and DR Congo. Ugandans and Arabs from Northern Sudan and Darfuris from the war-torn western Sudan dominate the market, whereas Southern Sudanese comprise less than 5% of the traders at Konyo-Konyo market. The market is built with temporary makeshifts of iron sheet and timber. There are also small stalls just at the open air, some under local umbrella made of canvass. Ugandan women selling vegetables, flour and beans brave the burning sun, just because they are making good profit amidst high transport costs and taxes.

Sample prices from Konyo-Konyo: Food item Price in Sudanese pounds Price in USD Pineapple 5 2.5 Cabbage 5 2.5 Bunch of bananas 3 1.5 Apple 1.5 0.75 1 kg. Irish potatoes 7 3.5 1 kg refrigerated fish 10 5 Live cock 35 17.5 Tray of eggs 10 5 Bag of charcoal 55 27.5

Example: Cross-border trade in Kaya (Uganda border)

Importation of goods includes building materials (roofing sheets, cement, and metallic products), new vehicles, and petroleum products. The main foodstuffs imported through Kaya include posho, rice, beans, and maize. There is also export of timber, mainly Teak by Equatoria Teak Company and Rhino Timber based in Yei, which exports about 5-8 lorries of teak to Uganda monthly. There are a total of 12 clearing firms, and have formed an association in Kaya. Road toll is collected in addition to other taxes like PIT and VAT. Road toll collection is at the rate of 40,000 SDP in a month. It is only collected from foreign registration vehicles like from Kenya, Uganda, DRC and Burundi.

Example: Imports from DRC

On the border crossing at Lasu (near Yei), many products are brought into South Sudan from DRC. This includes food and drinks (beer, cassava flour), as well as gold and minerals, which are sold on the black market in Yei and Juba. There is also said to be local production of mercury in Central-Equatoria.

21 Education

Skills Training In the whole of Southern Sudan, as well as in Central Equatoria, there are few private training centres compared to public skills training centres in various sectors, namely:

s/No Name of Location Area of Professional Type of Institution Specialisation Capacity Institution 1 Kagelu Yei River Agroforestry, Certificate Public Forestry County Entrepreneurship, (2 years) Training Farming, Centre beekeeping, carpentry 2 Crop Husbandry: Public Crop Training Yei Improved certificate Centre varieties of different crops Fisheries, Certificate, 3 Padak Fisheries Bor Entrepreneurship, 2 years Public Training Centre 4 Halima Livestock Public Livestock Training Centre 5 Nzara Food Nzara Technology County, Western Equatoria Multi-service Juba Carpentry, Diploma, 6 Training Electronics and Certificate Public Centre Electricals, mechanical engineering, masonry, etc. Kajo-keji Kajo-Keji Bricklaying, Certificate Public & 7 Vocational carpentry, 2 years Privat Training accounting, College computer, etc. Kajo-Keji Kajo-Keji Nursing, Certificate, Public 8 Nursing midwifery, etc. 2 years College Kajo Keji Masonry, certificate Public 9 Skills Training carpentry, Centre bricklaying, etc. Teachers training Certificate Public 10 Kajo-Keji Kajo-Keji Teachers Training College Kajo-Keji Theology, skilled Certificate Private

22 11 Canon Beneiya labour, business 3 years Poggo admin & Theological accounting, College agriculture

As seen from the table, private sector activity in skills training is not existent, hence it is a potential area of PPC investment in Southern Sudan.

Health In the provision of health care a division of responsibilities exists: the individual states are responsible for the provision of primary health care, whereas the GOSS is responsible for the management of (large) hospitals. Recently (2008) the AIDS Commission, responsible for advocacy and policy in the field of HIV/Aids, has been set up by the GOSS. All Ministries in the ten states have a representative person to see to this sector.

NGOs have played an important role in the delivery of health services in Southern Sudan; UNICEF, USAID, WFP, and WHO has played a major role among the UN agencies. Interventions were often disjointed and inefficient though, and the focus on first-level health services and disease specific programmes – typical for humanitarian action - has overshadowed attention to first-level referral hospitals and capacity building for mid-level and higher professionals. Overall access to health care remains minimal (user rate has been estimated as low as 0.2 contacts per person per year). Shortage of skilled human resources has been – and is – one of the major limiting factors to the provision of care, and the care provided is often poor. Traditional medicine is practiced either out of conviction or because no other means of care are available. The private for-profit sector is minimal and not expected to play a big role in the near future apart from a small number of urban centres.

NGOs operating in Western Equatorian State in the field of health are Malteser (Maridi), Save the Children (Mongolo), Umbred (Lui hospital), ZOA (Maridi), IMC (Tombra), World Vision (Yambio), Accross (Nzara, Maridi), Red Crescent (Yambio), MSF (which is withdrawing, was treating sleeping sickness, but the incidence came down well enough), UNICEF, the largest organisation operating in the area, coordinating with the Ministry of Health, as well as providing trainings and assisting in designing activities (but not implementing them itself), supplying test kits and condoms, as well as funding for NGOs that put in proposals to implement their projects. However, it is said that UNICEF is also withdrawing from the area5.

In Juba there are six hospitals, four run by the state: Juba Teaching Hospital, Military Hospital, Police Hospital and Children Hospital, and two private hospitals: Nyukorn Hospital and Munuki Hospital. In addition, there are (at least) three private clinics (depending on the definition of ‘private clinic’: several entities offer medicines and medical doctors tend to offer their services as well as provide drugs outside hospital hours, on a commercial base): the Egyptian Clinic, the Alpha Clinic and the Juba Medical Complex. Admission to the state-run hospitals is free of charge (except that every visitor – patient or relative/friend – upon arrival have to pay 1 Sudanese pound at the entrance - multiple entry options for regular patients/visitors do not exist). The private clinics and pharmacies charge fees for their health services, the amount of which is dependent on the health issue to address. Medicines for the state hospitals are provided by the

5 Interview World Vision.

23 National Ministry of Health in Khartoum through in-hospital pharmacies (until December 2007, a satisfactory supply of basic drugs to hospitals and several clinics was provided by the ICRC or NGOs such as the Norwegian People’s Aid in Yei), but responsibility for this has now passed over to the Ministry of Health). Private clinics procure their drugs in Khartoum (Sigma-tau Sudan Ltd.), Uganda (Kampala), Kenya or India.

Western Equatoria counts seven state hospitals, but only in four of them qualified medical doctors, laboratory assistants and technicians are present. In addition, the state counts 46 primary health care centres (PHCCs), but only five of these have clinical officers, 155 primary health care units (PHCUs). The state counts 16 private health care clinics, out of these only two can retain patients for 24 hours, none of them offer wards for in-patients facilities. Medicines are provided by UNICEF, WHO and Red Crescent. In 2008, Red Crescent has built five PHCUs and two PHCCs, five PHCUs are under construction and two are being reconstructed. The NGO Safe the Children has constructed 11 health facilities in Mbolo County (two PHCCs and nine PHCUs).

Maternity hospital forms partnership with Sudan IRELAND’S newest and Sudan’s top maternity hospitals are to combine their efforts. Doctors and midwives from Omdurman Maternity Hospital in Khartoum arrived in Cork (Ireland) yesterday to spend the week at Cork University Maternity Hospital (CUMH). Their visit will culminate with the signing of a five-year partnership plan that will have important benefits for newborn babies, their mothers and families in Sudan where the infant mortality rate is 15 times higher than here.

The plan ultimately hopes to reduce infant and maternal mortality, to improve Omdurman's facilities and hygiene, to develop its management structure and to further the education links between both hospitals. The link between the HSE South and the Khartoum-based hospital came through two Sudanese doctors’ consultant, paediatrician Dr. Sami Ahmed, and consultant obstetrician Dr. Murshid Ismail, who both work in Cork hospitals.

They invited Cork neonatologist, Professor Tony Ryan, and Joanne Ryan, a neonatal resuscitation programme teacher, to Sudan in 2002 where they taught an infant resuscitation course. "We made a commitment at that time to contribute to the hospital by way of augmenting the skills the staff and establishing formal links with them," Prof Ryan said. Doctors from Cork have been over twice since to deliver training. Source: Irish Examiner, February 28, 2006.

2. Cross-cutting challenges to economic development

Poor infrastructure, especially roads and airport, remains a leading challenge to development in all the sectors of Southern Sudan. Other major constraints that cross-cut the different sectors are continuous insecurity, lack of access to finance and the weak capacity of the GoSS to implement and monitor laws and regulations, to combat corruption and create an effective enabling environment for business development. Finally, the capacities of local NGOs are very limited and they currently are not able to fulfil any watchdog function.

Specific challenges to sectors

Challenges to Oil production and Mining All of Sudan’s production fields are landlocked. The infrastructure of the industry is concentrated in the northern part of the country, while most proven reserves are located in the

24 South. In case the South will opt for secession after the 2011 referendum on self-determination, the North will have a considerable leverage over the South’s sole independent source of income. Feasibility of a pipeline connecting to the coast of Kenya is currently being explored to make Southern Sudan less dependent.

Oil production and mining have high social and environmental risks. To ensure sustainability of its operations, the ECOS business principles should be adhered to6. This includes the involvement of local communities and civil society to ensure that they do not bear any of the negative impacts of oil drilling or at least are compensated for the damage done.

Challenges to Agriculture Agricultural production is far from meeting the demand for food in Southern Sudan and most production is for subsistence only. The population is very dependant on food aid, with around 30% of all households receiving food aid in Southern Sudan. There are areas that are generating some surplus production, but access to markets is a serious constraint7.

Agriculture is the sixth priority for the Government of Southern Sudan (budget 2008) since security, infrastructure, health and education are regarded as more urgent. Therefore, the Ministry of Agriculture only receives 1 % of the total Government budget! This seriously limits potential for investments in crucial sectors such as irrigation, which should be among the top priorities according to the Minister of Agriculture. There is lack of information on soils and climatological data at the GoSS level. A database on land cover is maintained by FAO, but is only available in Nairobi and Khartoum8. It should become more easily available in Southern Sudan.

Major challenges for agriculture include: · Storage and transport: Poor transport infrastructure in rural-urban connectivity, which limits market access and raises costs of agricultural inputs. Inadequate storage facilities to store harvested food from farms leading to rotting and causing substantial loss to farmers. Surplus in one state can hardly be delivered in other states due to poor storage facilities and poor transport infrastructure. Limited infrastructure for export markets. · Skills development and capacity building: Shortage of basic skills and knowledge (production techniques, germination, marketing, business development) keeps farming at subsistence level. There is also a need for sensitization on the use of locally produced fertilizer (e.g. cow dung) and (organic) pesticides. The lack of capacity building to farmers to enable them to learn modern farming and crop management techniques and skills necessitates attention. This is also compounded by the lack of extension services or training by county authorities, despite the high demand. · Socio-cultural constraints: Farmers use traditional methods to cultivate crops, which is a hindrance to meeting demand and competing effectively. Reluctance of farmers to move towards more productive techniques, such as ploughing, also have cultural origins, in which cows, are not regarded to be used to work. Farmers are often not working together in producer associations or cooperatives. This is partly explained by the lack of information and/or education, but often distrust also plays a role. Women are responsible for up to 80% of the work in agriculture and are responsible for selling goods on the market. The income is given to the husbands who are then reluctant to give women money to reinvest and grow. Often income is used to obtain more cows and wives.

6 See www.ecosonline.org 7 World Bank, 2007. 8 See www.africover.org 25 · Seeds and tools: There is limited availability of seeds and tools, and the government is providing only very limited agricultural support services. · Dependency syndrome: Refugees returning from Kenya have lost skills in agriculture, and also many lost the interest to work on the land. Refugees in Kenya, where families have stayed for sometimes 20 year, were always provided with food since they generally had no access to land. This is different from the returnees from Uganda, who were provided with a piece of land who were able to pass on farming skills to their children and seem to have fewer problems in readapting to an agricultural livelihood. · Limited access to finance: Microfinance institutions do not provide small loans to farmers.

Challenges to Animal Production Livestock/Dairy industry · Many Sudanese cattle owners are not willing to sell off their livestock because according to tradition, owing livestock equals economic, social, and religious wealth and significance. · Lack of processing capacity: cattle are being slaughtered using traditional methods in the open air, where lack of hygiene is a major problem. There are no formal slaughterhouses in Southern Sudan, and very limited storage capacity for locally slaughtered meat. · Milk production potential of most indigenous Sudanese cattle is sub-optimal. Possible methods to tackle this problem would be improved feeding and milking techniques, in combination to cross-breeding. There is need for more research on how to improve the dairy sector in Southern Sudan.

Poultry · A major constraint for up-scaling is the lack of access to micro-credit for rural enterprises. · Lack of knowledge and lack of extension services from local government. · Lack of storage facilities and marketing channels.

Fisheries · Lack of knowledge on fishing techniques and low productivity. · Limited or no knowledge of food processing and conservation. This includes the fact that local Sudanese fishermen only use traditional drying, which is extremely vulnerable to diseases. On a small-scale, some initiatives have started on the use of boats with refrigerators, but the scale is limited. · Sustainability needs to be taken into account. There is a high risk of overexploitation of fish, especially given the large influx of returnees to the Nile River. No figures were found on fish stocks and current yields and more research on the sustainability of the fisheries sector is needed.

Challenges to Forestry

Timber · Lack of technical know-how and skilled labour for timber exploitation, which means that labourers have to be brought in from neighbouring countries. · Lack of awareness of the value of standing forest. There is a tendency to capitalize on existing teak plantations and natural forests. In one case, plantation teak is sold off at prices which are significantly lower than average global market prices (150 USD in Sudan vs. 1500 USD in the world market per cubic metre roundwood equivalent).

26 · Illegal logging is still rampant with valuable logs being used for local furniture and housing. There is need for both government and civil society to build capacity in monitoring of foreign logging companies. · Lack of legal framework and weak or non-existing law enforcement for timber and non- timber use of the forest.

NTFPs (Non-timber forest products) · More research is needed on the potential of locally used NTFPs, such as Lalok (Balanites aegyptiaca), medicinal plants and fruits. · Need for training of farmers and women’s groups in collection and processing of Shea nut, honey and other NTFPs · Lack of processing facilities, marketing channels and value chain development · Lack of access to microcredit to upscale production of sheanut, honey and other NTFPs · Need for awareness-raising on environmental degradation, ecosystem management and conservation, especially in the field of charcoal and timber felling.

Challenges to Trade sector · The population is very sparse in the rural areas which may hinder economic growth by limiting the consumption level of products. Also, the low population is a hindrance to the supply side of the equation since even if modern methods are used to increase production; the demand will still be low. · All the traders interviewed in Juba have difficulty in accessing capital to expand their business. There are no micro credits and banks are not yet well established here. The same is also true for traders outside Juba. · Another challenge is unfavourable government policies towards business in Southern Sudan. They suffer multiple taxations as the Investment Bill is still to be passed by the parliament. All the states through which goods pass impose new taxes plus other cross- cutting charges on the traders, especially on imports. This has resulted in price hikes in Juba, thus discouraging consumer purchases. Additionally, because of the lack of a proper land policy, traders tend to loose their commodities and money from frequent demolition9.

Challenges to Tourism sector · Inaccessibility to national parks: there is a lack of roads to the major national parks. Some parks can be reached by air (e.g. Boma National Park), but in general accessibility is a huge challenge given the size of Southern Sudan10. · Insecurity and mines: It is still too early to start thinking about organized tourism given the insecurity in large parts of Southern Sudan and the threat of landmines and unexploded ordnance. Tourism is extremely vulnerable to security incidents so it is crucial to start operating once the security risks have been minimized. · Poaching and illegal hunting: The tourism sector is faced by a risk of hunters and poachers. Due to the presence of small arms in the hands of the local population, rare species are endangered. In addition to the local hunters, cross-border poaching is rampant at the Nimule National Park. Ugandan poachers kill a great number of animals such as

9 One of the Ugandan traders said he lost property to the value of US $10,000 from the demolition of Customs market in July 2008, and Juba Market in January, 2009. Now he is back to Customs again and is selling at an open air market, fearing another demolition. 10 For instance, Nimule National Park cannot be accessed from the West Bank of the Nile River. Tourists and game wardens that go to the park use a motorboat either from Nimule or Moyo in Uganda. There is a plan to build a road to the West Bank of the Nile from Kajo -Keji town but that has not been implemented yet. 27 elephant and take the meat and ivory back to Uganda for sale. Poachers, after killing female chimpanzees, offer the orphaned chimps for sale, but there is no capacity in Sudan to take care of these animals.

Challenges to Hospitality sector

Like Tourism, the hospitality sector has a lack of skilled labour from the local market. Most of the workers in hotels and lodges in major towns of Southern Sudan come from the neighbouring countries of Kenyan, Uganda, DR. Congo, Eritrea and Ethiopia. Thus, given their limited experience in the socio-political environment of Southern Sudan, do not perform to the expectation of the industry. Other major threats are poor infrastructure making transport of goods very expensive, insecurity limiting the number of visitors to hotels and lodges, and the lack of capital, especially for the local investors. Challenges to Manufacturing · Assess to formal credit for business and investment plans · Shortage of skilled labour · Poor infrastructure resulting in high transport costs raise cost of sourcing materials and costs of marketing

Challenges to Infrastructure

Road and Building Construction The rehabilitation and new development work already in progress in the infrastructure sector is faced with diverse challenges. Capacity challenges like lack of skills, expertise, and equipment, importation of inputs are cross-cutting and affect the sector in entirety. In addition, the road construction industry is faced with shortage of heavy duty machines like cranes, rollers, excavators, and transport lorries. It is very expensive to hire cranes and heavy machinery, let alone their availability.

Railway Construction Railway construction involves long distances of untamed land and geographic obstacles, including hills, mountains, and waterways. Carrying surveys for the actual routes will be challenging and expensive, especially due to the challenges presented by landmines and unexploded Ordnances (UXOs). Additionally, there will be challenges due to the unavailability of capacity, expertise, power, telecommunication systems and adequate funding.

Irrigation · Lack of funds · Lack of technical expertise and machines that are required to start and manage irrigation systems.

Electricity Electric poles are imported from as far as South Africa which makes their purchase very expensive. The locally abundant teak timber cannot be used because it is too hard, and hence cannot be drilled. Other challenges include the limited supply of transformers, transistors, conductors, and cables. These concerns, coupled with lack of adequate funds and capacity to install, maintain and repair faults present serious obstacles.

Transportation There is lack of all weather roads which heavily impacts the movement of goods and services especially during extreme weather seasons, particularly wet seasons. There are also inadequate

28 and unorganized public road transport systems, making it both expensive and inconvenient to commuters.

The airlines that operate in Southern Sudan are faced with a number of challenges some of which are: Poorly maintained airstrips; unavailability of automatic landing facilities and guided controls; lack of fuelling facilities; and lack of technical capability.

Capacity is a major challenge for the Department of River Transportation. Ports that were once being managed and maintained by the northern government were without GoSS involvement. Consequently, GoSS lacks the requisite capacity to run and manage the facilities. Moreover, GoSS is currently faced with a myriad number of situations in diverse areas all which demand urgent attention and funding. River transportation does not get adequate budget allocation from GOSS and hence cannot achieve all its obligations. Lack of maintenance, facilities and spare parts also need to be addressed.

The sector is also faced with navigational the following challenges:

· Cataracts – there are six major cataracts between Halfa and Khartoum which pose navigational challenges along the River Nile and thus cut–off the most suitable means of transport from the North. · Water levels - Some sections of the White Nile and some of its tributaries suffer from drops in water level during the dry season, which restricts navigation during that period · Water Hyacinth - This flows from lake Victoria, the source of White Nile and affects the smooth running of navigation, especially during the rainy season. The accumulation of the hyacinth slows down the speed of the push tugs and some times damages the propellers of the tug. It has totally blocked the navigable waterway through the River Jur that stretches to Wau. · Moving sands in small areas sometimes make it difficult to operate the service during the night. · There are also some sharp bends, which need careful attention.

Challenges to Financial sector The main constraint in the financial sector is funding leading to lack of cash and liquidity. There is an absence of financing sources for the private sector, particularly micro enterprises. As previously mentioned, Southern Sudan’s population density is low, posing a challenge to sustainable microfinance11. Another major challenge in the banking sector is the absence of a payment system in which payments can be made through a standard cheque system. This means that any transactions involving money have to be settled manually even for those with bank accounts.

The banking sector is not only currently regulated by BoSS but also controlled to an extent. For example, BoSS must be notified of any money being transferred from overseas to individual or organization’s account in commercial banks. BoSS also dictates the cost of transferring the money. This has made the cost very high for the transferor and as a result most international organisations maintain their accounts in Nairobi or Kampala and do manual transfers to Sudan. BoSS also controls the exchange rate which is currently set at two Sudanese pounds to one US dollar. Apart from oil proceeds, whose disbursement is controlled from the North, there is no other resource in the South to support such a strong Sudanese pound. This makes the cost of investing in South Sudan expensive.

11 GOSS/MDTF, 2007. 29

Capacity is also a major challenge exposing investors to lack of prudent financial management. This is further compounded by lack of systems, which often translates into additional costs for the investor. The banking system in the country is also suffering from absence or inadequate infrastructure. This means a lot of cash lies un-mobilized in the hands of traders and the business community, instead of in the banks. Poor telecommunications infrastructure and services is another serious challenge which the banking sector faces.

Challenges for telecommunications & ICT

- Universal access The largest challenge the ICT sector faces is ‘universal access’. Without substantial infrastructure to support all major towns in Southern Sudan, it is unlikely that this will be reached in the very near future. Overall, the full potential of ICT is greatly hampered by the lack of capacity of communities to make the best use of the services. Since many people do not know how to use computers or internet services, their access is constrained.

- Interconnectivity Another huge challenge that users of telecom services face is the lack of inter-connectivity between the different telephone networks (not taking place yet, resulting in subscribers walking around with several handsets of different networks to be able to call users of different networks). The GoSS Ministry of Telecommunications and Postal Services mentioned an ‘interconnectivity agreement’, to be signed between all telecom companies operating in South Sudan by March 2009. In this agreement, telecom providers agree upon sharing their networks in order to ensure mutual access between the different networks. However, some telecom providers strongly deny the existence of a certain initiative 12 (such as MTN, stating that the only solution for ‘interconnectivity problems’ would be that customers all choose MTN).

- Airtime selling policy Credit for phones can be best bought at the companies, as middlemen tend to charge higher prices than officially allowed to top-up their income. The GoSS Ministry of Telecommunication and Postal Services is to call a meeting with operators to review the selling policy to the extent that these practices are strongly being discouraged.

- ICT Infrastructure Since electricity is very expensive and the service not always very reliable, many internet providers suffer from in carrying out their operations, resulting in high user costs (approximately 10 Sudanese pounds for 1 hour). Additionally, the bad condition of roads and transport inhibits their ability to supply their stations. Finally, the security situation places a constraint to further extend their operations, for example, in areas that are occupied by the LRA or other armed groups.

Challenges for Health Sector

Generally, the health sector faces a serious lack of capacity to meet the existing demand for specialised health services, obliging many nationals to seek treatment abroad. Access to safe drinking water is also a problem. It is estimated over 60% of people in the South of Sudan have no regular access to safe drinking water and most do not have access to sanitary means (UNICEF, 2007). Furthermore, there is a lack of capacity building: local health workers are not

12 For example MTN, which stated that “the only solution for interconnectivity problems is that all customers choose MTN” (interview MTN PR Supervisor, Juba). 30 trained, hospitals very poorly staffed and several key informants claim that NGOs do not transfer their skills and knowledge to local people, nor are they willing to operate in remote, rural areas. An example that illustrates this situation is an X-ray machine that has been provided in 2004, but this equipment has not been used thus far, since there is no knowledge on how to apply it among the medical personnel available. More specific challenges the sector faces are a lack of awareness activities (for example in the field of HIV/AIDS), a dearth of facilities, medical equipment and medicines. These awareness activities should be carried out through posters, pamphlets, media and trainings. In addition, appropriate assistance to address the high levels of war trauma among the population in Southern Sudan is currently almost completely absent. This affects not only the whole social sphere in Sudan, but also economic development, as many people are said not to be in a state of mind to perform optimally. Challenges faced in commercialisation of this sector are the threat of localised insecurity, problems in access to remote areas and, most of all, the poor infrastructure and lack of skilled personnel that is available. This has constrained the expansion of the sector from the private as well as the public side. In addition, ensuring access to medical services for all people (especially the ‘poorest of the poor’) remains a huge challenge.

31 2. Key stakeholders per category

Government structures The main ministries involved in economic activities are:

i) Ministry of Commerce and Trade - Departments of External trade and Private Sector Development ii) Ministry of Finance – Department of revenue collection, investment authority, customs and exercise iii) Ministry of Legal affairs – Registrars department, legal department iv) Ministry of Energy and Mining – Departments of Mining and Petroleum – licensing and control of mineral mining and petroleum exploration activities - Are encouraging investors in the power sector - Petroleum activities are managed by National Petroleum Commission - Investors apply for mineral prospecting license which is granted for three years. If successful, they enter into a contract with the government and the community on an agreed sharing and community development formula v) Ministry of Labour - Includes technical education and vocational training vi) Ministry of Agriculture and Forestry – Food security and agricultural activities, Forestry development - 80% of cereal production is through traditional farming methods - 30 – 40% of agricultural production is lost owing to poor post harvest handling - Investment in Agriculture is still underdeveloped - The main strategic goals are: Move away from dependency on relief and neighbours; increase food production and provision; aim at self sufficiency - These to be done through increased production of food crops to meet internal food needs; develop, produce surplus food for domestic, regional and international markets - Aim at mechanization - Meet the challenges

International agencies

World Bank The role of WB is to provide funding and advice to the government. In providing these services, the WB has established various conditions under which the funding is managed. They use a standard model where a structure is set up from relevant government officials, civil society and WB. This is done through an M&E framework in which targets and other indicators are set and monitored.

ILO ILO has concentrated on assisting the Ministry of Labour with formulation of its labour law. The process is almost completed. ILO builds the capacity of this ministry in labour administration and other functions. In addition, a vocational training policy was developed for the GoSS including an implementation strategy. Two projects are about to start, one on combating child labour and a second one on Youth Employment, a joint UN programme for which ILO is responsible in Southern Sudan (and UNIDO in the North). The latest project includes an element of direct support to existing cooperatives in order to create youth employment. Therefore the project also links to the Ministry of Cooperatives.

32

UNDP UNDP’s role is to work with governments and communities to identify their needs. Once these are identified, proposals are then written and evaluated under the general guidance of UNDP. The successful ones then receive funding. UNDP’s role becomes that of ensuring that accountability and project specifications are adhered to in accordance with UN guidelines.

Joint Donor Office The Joint Donor Office was established in 2006 and is composed of six countries: Canada, Denmark, the Netherlands, Norway, Sweden, and United Kingdom. The mission of the Joint Donor Team is to promote peace, poverty reduction and the achievements of the Millennium Development Goals in Southern Sudan by pursuing policies consistent with the CPA. Its role is to coordinate and strengthen development efforts for Southern Sudan in three areas: public sector, basic services, governance and the rule of law.

Civil society The role of civil society is to provide watch-dog function to the government. In an environment like Southern Sudan where the government structure is new and is plagued with myriad number of issues all requiring urgent attention, civil society finds itself in the unfamiliar position of playing a dual role: providing services to the community and partly playing the watch dog role. In this regard, they end up becoming important as economic actors. This situation is however expected to change gradually as the government matures and starts assuming its role of service delivery to the residents. There are international and national NGOs, as well as Community Based Organisations operating at the grass-roots level.

Business associations Chamber of Commerce, South Sudan War veterans association, Union of customers

Training centres Institute of Management studies in Malakal

Local private sector and trade centres in Juba

NCB The NCB is a private bank with 2700 shareholders, most have one share. It is therefore owned by the public. The director, Mr. Charles Whyte is employed by AMSCO (Dutch) and is on secondment to the bank. His main task is to run the bank and to build capacities of local staff. The bank is one of the success stories of AMSCO.

- Internet cafes and document processing bureaus There are already several cafes and document bureaus in Juba located in diverse locations. Most of the internet is private in institutions, hotels, NGOs, and government ministries. The bureaus employs between one to five people, of whom only about one third are skilled

- Money transfer services There are five major money transfer companies in Juba dealing mainly in transfer of money outside Juba and South Sudan and also currency exchange services. Majority are foreign owned and employ foreign staff.

- Medical clinics and pharmacies

33 There are currently over twenty medical clinics and pharmacies in Juba besides two main hospitals – Army and The teaching hospital. Some of these are documented in the Juba Business Directory 2009.

- Road side fuel sales There are numerous road side fuel sales in bottles. Their major customers are boda boda taxis and generator owners.

- Motor vehicle repairs There is a number of motor vehicle garages located in various corners in Juba town. They deal mainly in body repair and engine repairs. The spare parts they use are ordered from outside the country mainly from Uganda, Kenya, and Taiwan. Where a vehicle cannot be repaired it is loaded onto tracks and transported to Uganda for repairs

- Boda Boda (Motor cycle taxis) According to police reports of 2008, there are over 2,000 boda boda motor cyclists in Juba. Most of them are ridden by underage people who are not qualified and this has increased the death rate as a result of this mode of transport.

- Matatu (town transport) The matatu transport has picked up in Juba significantly over the last two years. There could currently over between 500 and 1,000 matatus on the road within Juba

- Water distribution There are a number of water distribution companies using tanker-mounted lorries. They draw water using electric pumps from the Nile and sell across the town.

- Water purification and bottling They are four water purification and bottling companies in Juba. There are a number of bottled water types imported from Uganda and Kenya.

- Insurance services (property, personal, motor vehicle) There are about five insurance companies in Juba, two east Africa, two from the north and South. These also cover risks and motor vehicles.

- Financial services (Banking) There are four commercial banks in Juba, one foreign owned, and three local. A number of foreign-owned banks, including Ethiopian Commercial Bank, Equity Bank of Kenya, Exim Bank from Tanzania, which is to open soon.

- Lodges and camps While it was not possible to establish the exact ownership structure of the lodges and camps, there are over 80 hotels, lodges and camps in Juba under mixed partnership, while others are locally owned. The price range is from 45$ to $ 300.

- Eateries and food kiosks There are over 100 eateries in Juba. These are spread all over Juba town and offer western, eastern and African cuisines owned by both foreign and local entrepreneurs.

- Schools (Kindergartens, nurseries, primary, secondary, tertiary, universities)

34 There is one University, and over five secondary schools, ten primary schools, some kindergartens and nursery schools.

- Retail shops There are several retail shops in Juba. The major ones are in Konyo Konyo area and in Juba town area (e.g. JIT supermarket).

- Stone crushing This is an activity that is very popular and done both informally and formally. One of the major players is ALOK.

- Green vegetable sales (tomatoes, onions, carrots) This is done mainly in the markets where the goods sold are 90% imports from Uganda.

- Motor vehicle sales There are number of motor vehicle sales companies in Juba. Some of them are franchises for foreign companies (e.g. CMC of East Africa).

- Communications (cell phones and telephones) These are about 5 cell phone companies in Juba, namely Sudatel, Vivacell, Zain, Gemtel, MTN. Four are foreign owned.

- Building and road construction The companies in this category number over 30 operating within Juba.

- Garbage collection There are over five companies involved.

- Petroleum marketing Over ten companies involved. Fuel is sourced through Mombasa Port in Kenya and from North Sudan

- Electronics There are over twenty electronic companies dealing in sales of electronic goods and spares.

- Power Generation and distribution There is one government owned generation and distribution thermal power station in Juba, supplemented by a number of privately owned generators.

- Clearing and forwarding There are a number of clearing and forwarding companies in Juba, most of which have branches at the border towns of Kaya, Nadapal and Nimule.

- Capacity development A number of vocational training centres are found in Juba mainly dealing in ICT, project management, adult literacy, English and Arabic courses.

- Travel, Courier services and Shipping agents There over 15 companies involved in these economic activities. Majority are foreign owned while a few are local.

35 - Fishing The main fishing activity carried out by individuals using hooks and nets along the Nile rive bank is for domestic market.

- Milling (maize, millet, sorghum) There are no large scale millers in Juba.

- Livestock (cattle, sheep farming) This is only being practiced at subsistence level. There is one livestock market feeding one abattoir near Konyo-Konyo Market.

- Dairy (Processing of milk and milk products) There are no dairy plants in Juba. Milk is produced locally by cattle keepers from cattle camps but not for commercial consumption.

- Hides and skins and leather There are no hides and skins activities in Juba

- Poultry farming, chicken feeds There are no known poultry businesses going on. Most of the eggs and meat is imported from East Africa and Khartoum.

- Abattoirs There is one abattoir in Juba supplied mainly from Uganda.

- Taxi (hired transportation) Almost all the taxi operators are individual managed apart from a few operating from the airport in conjunction with travel agents.

- Pubs, bars and night clubs Many pubs, discotheques and bars are springing up in Juba following the removal of Sharia law from Southern Sudan.

- Information Technology and Communication Services A number of companies deal in ICT services both foreign and local, all within Juba town.

- Hardware sales The major hardware companies supplying the construction works in Juba are owned by northern Sudanese, Somali and Ugandan merchants.

- Beauty Salons and Barber shops There are several of these scattered all over the town

- Bookshops There are a few bookshops in Juba, apart from several stationery shops spread all over.

- Furniture and carpentry A number of furniture shops are already operating in the town with imported furniture. There are also a few carpentry workshops in town.

Other economic activities in Juba include:

36

- Security grills (metal doors, windows etc) - informal - Black smith (house hold appliances) – mainly informal - Photo studios – mainly INFORMAL - Brick making - Steel manufacturing – mainly fabrication and panel beating

TRADE CENTERS Old customs New custom Konyo Konyo Gumbo Munuki Juba (dismantled end January)

Local private sector and trade centres outside Juba

- Financial sector NCB and SUMI have branches in the two states’ major towns.

- Internet cafes and document processing bureaus There are already few cafes and document bureaus located in diverse locations in the county headquarters of these two states. Most of the internet is private in institutions, hotels, NGOs, and government ministries.

- Money transfer services A few sub-branches of the money transfer companies found in Juba are in Yei and Yambio.

- Medical clinics and pharmacies There are few medical clinics and pharmacies in the main towns of these states, most of which are NGO and government run health centres, with a few private pharmacies.

- Road side fuel sales There are numerous road side fuel sales in bottles. Their major customers are boda boda taxis and generator owners.

- Motor vehicle repairs There are a number of motor vehicle garages located in various corners in the major towns. They deal mainly in body repair, engine repairs, etc. The spare parts they use ordered from outside the country mainly from Uganda, Kenya, and Japan. Where a vehicle cannot be repaired it is loaded onto tracks and transported to Uganda for repairs

- Boda Boda (Motor cycle taxis) The major public transport at the county levels of the two states is boda boda bicycles and motorcycles.

- Matatu (town-to-town transport) The matatu transport has picked up in the states significantly over the last two years.

37

- Water distribution There are a number of water distribution companies using tanker-mounted lorries. They draw water using electric pumps from the Nile and other rivers near the towns, and sell across the towns.

- Lodges and camps While it was not possible to establish the exact ownership structure of the lodges and camps, there are a few hotels and lodges at the county levels, most of which are locally owned.

- Eateries and food kiosks A number of local eateries serve local dishes operate in these towns.

- Schools Kindergartens, nurseries, primary, secondary, tertiary, universities) There are a few training facilities/centres, a number of secondary schools, primary schools, some kindergartens and nursery schools (e.g. one private kindergarten in Yambio).

- Retail shops There are several retail shops and kiosks from the boma to county levels in these states.

- Green vegetable sales (tomatoes, onions, carrots) This is done mainly in the local markets with supplies from local farmers.

- Communications (cell phones and telephones) Most of the cell phone companies operating in Juba have branch offices in major towns of the states.

- Building and road construction There are few building and construction companies based in these towns. Most of the companies have their work stations along the major roads connecting the towns.

- Garbage collection There are a number of garbage collection companies in the states capitals.

- Petroleum marketing There are three petrol stations in Yei and one in Yambio. Sale of petrol in drums is popular. Fuel is sourced through Mombasa Port in Kenya and from North Sudan

- Electronics There are a few electronic companies dealing in sales of electronic goods and spares, and mobile phones.

- Power Generation and distribution There is one government owned generation and distribution thermal power station in the state capitals, supplemented by a number of privately owned generators.

- Clearing and forwarding Most of the clearing and forwarding agents in these states are found at the border towns.

- Capacity development A few vocational training centres are found in major towns of these states.

38

- Milling (maize, millet, sorghum) There are no large scale millers in the states.

- Livestock (cattle, sheep farming) This is only being practiced at subsistence level.

- Hides and skins and leather There are no hides and skins activities in Juba

- Poultry farming, chicken feeds There are three poultry farms in Yei, but a few in the rest of the towns.

- Abattoirs There is one abattoir in Yei supplied mainly from Uganda.

- Taxi (hired transportation) All the taxi operators are individual managed plying routes between towns and the borders.

- Pubs, bars and night clubs A number of pubs, discotheques and bars are springing up in these towns, with beer and music imported from the neighbouring countries.

- Hardware sales A few hardware shops are operating in these towns, supplying the local building construction works.

- Beauty Salons and Barber shops There are several of these scattered all over the towns.

- Bookshops There are a few stationery shops in Yei and Yambio.

- Furniture and carpentry A number of furniture shops are already operating in the towns with local timber. There are also a few carpentry workshops in towns.

Other economic activities in the states capitals include:

- Security grills (metal doors, windows) - informal - Black smith (house hold appliances) – mainly informal - Photo studios – mainly informal - Brick making

39 Trade Centres outside Juba

Lainya County Lainya market Wonduruba Loka

Terakeka county Terakeka market Tali Mongala

Yei County Yei market Pakula Mugo market

Morobo county Morobo market Bazi Kaya

Western Equatoria Maridi Mundri Yambio Tambura

40