HORTICULTURAL CROPS DEVELOPMENT AUTHORITY

P.O BOX 42601, NAIROBI 00100 GPO

TEL: 254-2-2088469 / 254-2-203555398
FAX: 254-2-203555395

REPORT ON SOUTH SUDAN MARKET SURVEY

22ND APRIL 2012 TO 27TH APRIL 2012

Aerial view of South Sudan

BY AGNES WAINAINA
MARKETING OFFICER

South Sudan Market Survey-April 2012 Page 1

TABLE OF CONTENT

1.0 BACKGROUND……………….…………………………….…………….3
2.0 OBJECTIVES OF THE SURVEY…………………….………….….….4
2.1Why Southern Sudan…………………………………………….…..…4
2.2 Methodology………………………………………………….….….…5
3.0 VISIT OF THE MARKET SURVEY…………………………………….6
3.1 MINISTRY OF AGRICULTURE………………….……………….……6
3.2 KONYOKONYOMARKET…………………………………..….….……7
3.2.1 Vegetables prices in South Sudan pound
(Exchange rate Ksh 31 per pound)………………………… …..…9
3.2.2 Fruits Prices in South Sudan Pound
(Exchange rate Ksh 31 per pound)…………………….……….. …9
3.3 SOUTH SUDAN CHAMBER OF COMMERCE………………..…….10
3.3.1 Procedures for starting a business in South Sudan……………….10
3.4 VAMP SUPERMARKET…………………………………………..…....14
3.5 MINISTRY OF COMMERCE……………………………….……….….14
3.6 MINISTRY OF JUSTICE………………………………………………...15
4.0 SOUTH SUDAN AGRICULTURE………………………………..…….15
4.1 LAND OWNERSHIP……………………………………………………..16
4.2 WATER SOURCES………………………………………………………16
4.3 TRADE AGREEMENTS AND TRADE……………………….……….17
4.4 INVESTMENT………………………………………………..…………..17
4.5 TECHNOLOGY IN SOUTH SUDAN……………………..…….…..…18
4.6 MINERALS………………………………………………………….……18
4.7NATIONALITY…………………………………………………….…….18
5.0 PESTEL ANALYSIS…………………………………………………....19
5.1 SWOT ANALYSIS……………………………………………..…..……20
6.0 ISSUES BETWEEN SUDAN AND SOUTH SUDAN…………….….26
6.2 CHALLENGES OF INVESTING IN SOUTH SUDAN…………..…26
7.0 RECOMMENDATION…………………………………………..…..…28

South Sudan Market Survey-April 2012 Page 2

1.0 BACKGROUND

The total area of South Sudan is 644,329 square kilometer.It has ten state named as
follows:-Upper Nile, Jonglei, Unity, Warrap, Northern Bahr-El-Ghazel, Western Bahr-
Ghazel, Lakes, Western Equatoria, Central Equatorial and Eastern Equatorial, with a
population of 8,260,490 people.

South Sudan gained its independence from Sudan on 9th July 2011 following the
referendum that was carried out on January 2011 this was after the CPA that was signed
in Kenya in 2005.The president of this country President Salva Kiir Mayardit and the
capital city is Juba with an estimated population of 350,000 people it is located in the
Central Equatorial State. The official languages are Arabic and English a and the
currency used is South Sudan pound which has an exchange rate of Ksh. 31 to one
South Sudan pound. Kenya borders South Sudan to the Eastern Equatorial state.

The population per state is as indicated in the table below:-

Population Distribution by State

State Population Males Females Households
Upper Nile 964,353 525,430 438,923 142,438
Jonglei 1,358,602 734,327 624,275 192,424
Unity 585,801 300,247 285,554 71,067
Warrap 972,928 470,734 502,194 169,505
Northern Bahr-El-Ghazel 720,898 348,290 372,608 133,563
Western Bahr-El-Ghazel 333,431 176,895 156,536 58,691
Lakes 695,730 365,999 329,731 92,323
Western Equatorial 619,029 318,469 300,560 116,336
Central Equatorial 1,103,592 581,544 522,048 179,071
Eastern Equatorial 906,126 465,365 440,761 153,851

South Sudan Market Survey-April 2012 Page 3

2.0 OBJECTIVES OF THE SURVEY:-

1. To link Kenya producers, traders and exporters to the potential market of

South Sudan.
2 To identify major importers/traders/distributors
3. Consumption trends in volumes and values
4. To identify and document Economic, Social, Cultural and Political
environment of the region which are key ingredient for viable/attractive
market.

2.1 Why Southern Sudan:

Kenya’s main horticultural exports have largely depended on its traditional markets of
European Union has over the years being increasingly becoming very competitive as
more countries especially those from Northern Africa (including Tunisia, Morocco,
Egypt and others) continue to penetrate this market with very competitive prices due to
their proximity and low freight costs. In addition these traditional markets have
continued to impose as lot of tariffs and non-tariff barriers on our horticultural exports
in terms of Global Gap requirements and environmental issues such as Food Miles and
Carbon emission. There is also an increasing campaign in the European Union
countries for consumers to buy and eat more of home produced agricultural products as
compared to imported products.

As a result of these issues it has become increasingly necessary for Kenya as a country
to re-look and develop strategies for the sustainability of the country’s horticultural
exports. Some of these strategies include diversification of markets in the Middle East,
Asia, and more important the regional markets in Africa. These markets are more
accessible and do not have a lot of stringent measures on the exports like the European
Union.

Kenya’s horticultural exports have been mainly concentrated in the Eastern and Central
regions due to their long history of horticultural production and their proximity to

South Sudan Market Survey-April 2012 Page 4

J.K.I.A Airport. Horticulture production has over the years become an important sub-
sector in other parts of the country and especially in the Western and the Northern parts
of the country. However, despite the increase in the production marketing of these
products and especially the exports products has posed some great challenges due to the
long distance to the export exit points and the huge transport costs. This has
necessitated the need to look for alternative export market especially in the regional
market.

According to a recent market survey by Export Promotion Council it’s evident that the
regional market has become an important market. There is a lot of potential for
horticultural export to South Sudan.

2.2 METHODOLOGY USED

I conducted interviews with the following respondents:

 Relevant Ministries (Trade,Justice,Commerce,Chamber of Commerce,Inverment

and Agriculture):-

- Ministry of Commerce, Industry and Investment-Mary Akech Taban Milla-

Director for private Sector Development.
- National Bureau of Statistics-David Chan Thiang-Director,Economics
Statistics
- Ministry of Justice-Hon.Laku Loggale Legge-Counsel General
Mary Ajith-1st Legal Counsel
- South Sudan Chamber of Commerce Industry and Agriculture-Charles M.
Anyama-Capacity Building Consultant.
- Ministry of Agriculture-Director of Horticulture

 Embassy staff in South Sudan including the Ambassador-

Ambassador Cleland Leshore-Ambassador of Kenya to South Sudan.

South Sudan Market Survey-April 2012 Page 5

 Open Market-Konyo konyo market and Jabel Market

 Trade and business people-

- Vamp Supermarket(Vegetable and meat products)-Ellen Ermita-Manager

- JIT supermarket-T.Rakesh-Manager

3.0 VISITS OF THE MARKET SURVEY

3.1 MINISTRY OF AGRICULTURE

The Ministry of Agriculture is mandated with promoting agriculture in South Sudan. It

has different departments one being the department of plants and the department of
horticulture among others.

My main concern was in the department of horticulture mostly on the importation of

horticultural produce to South Sudan. It was observed that to export horticultural
produce or seedlings you require clearance documents from the Ministry of Agriculture
who will then issue you with a letter to start importing seedlings to South Sudan.

Some of the horticultural activities or agricultural activities that the Ministry of

Agriculture has carried out since its establishment include extension services on states
levels which goes down to the few farmers in the state.

Currently the Ministry has introduced green house farming with the pilot project being
carried out in Rajafis for 10 green house farming, this is the first green house farming in
South Sudan introduced by M/s Amiran, and this is an opportunity to establish green
house farming for other horticultural crops.

There are three progressive horticulture growers growing traditional vegetables along
river Nile.

The identified areas for horticulture are the Western Equatoria State, Eastern Equatorial
State, Central Equatoria State, Jongue state and Unit state.

South Sudan Market Survey-April 2012 Page 6

There is a planning department under the Ministry of Agriculture who collect prices
from the whole of South Sudan and upload to www.climis.com

3.2 KONYOKONYO MARKET

This is one of the major open market for horticultural crops located in the heart of Juba
city with most of the horticultural crops being imported from Uganda via North Uganda
from Kenya through the Nemule boarder of South Sudan and Uganda border.

Most of the fruits and vegetables being sold in South Sudan come from Uganda e.g.
banana, cabbage, pineapples, onions. Kenya exports mostly carrots, mangoes, apples
and oranges.

South Sudan Market Survey-April 2012 Page 7

Traditional vegetables e.g. the amarathus are the most grown vegetables in South Sudan
along river Nile.

They only buy flowers during festivities from Kenya which is flown by air, there is
however no vending of flowers in South Sudan ,this gives Kenyans an opportunity to
look into exporting flowers to South Sudan and vending the flowers.

To bring goods to South Sudan i.e. the Central Equatorial State the goods pass from
Nemule border which are taxed approximately 20 South Sudan pounds per bag ,the
bags or sacks are also taxed at Mesitu in Juba at approximately 5 South Sudan pounds
per bag. This makes a sack go for approximately 600 to 400 South Sudan pounds. This
is around Ksh 18,000/= to Ksh 12,000/= per sack.

There is also imports from Sudan Khartoum of onions at 550 South Sudan pounds and
French beans from Uganda and Kenya.

There are revenue authorities established for each state from Nemule border to the
Central Equatorial State where they are taxed by the Central Equatorial State which is
the state that Juba is situated in.

Prices are not controlled by the government it depends on the market forces of demand
and supply.

South Sudan Market Survey-April 2012 Page 8

3.2.1 Vegetables prices in South Sudan pound (exchange rate ksh 31 per pound)

Item Unit Kshs.

Cost in SSP
Irish potatoes 100kg 280 8,680
1 bucket 45-50 1,395-1,550
Onion 1 sack 600-700 18,600-21,700
1 bucket 50-60 1,550-1,860
Cabbage 1 pc 8.00-15 248-465
Carrot 1kg 6.00-8.00 186-248
Dry Cassava 1 sack 240 7,440
Jews Melon(mulukhia) 1 sack 400-500 12,400-15,500
Okra 1 sack 800-900 24,800-27,900
Tomatoes 1 kg 10.00-12.00 310-372
Cow peas 1 sack 480 14,880
Ground nuts 1 bucket 65 2,015
1 sack(100 4,960
Fresh cassava kgs) 160
3.2.2 Fruits Prices in South Sudan Pound (exchange rate Ksh 31 per pound)

Item Unit Cost in SSP Kshs.

Paw paw 1pc 5.00-10.00 155-310
Avocado 1 pc 2.00-4.00 62-124
Pumpkin 1pc 10.00-15.00 310-465
Watermelon 1pc 15.00-20.00 465-620
Banana 5pcs 5 155
Orange 1 pc 3 93
Apple 1pc 2 62
Passion fruit 5pcs 10 310
Dates 1kg 8 248
Pineapple 1pc 5.00-10.00 155-310

South Sudan Market Survey-April 2012 Page 9

3.3 SOUTH SUDAN CHAMBER OF COMMERCE

The South Sudan Chamber of commerce is the first stop for any Kenyan or foreigner
wanting to establish a business enterprise in South Sudan.

The following are the procedure of obtaining a business document in South Sudan:-

 To start an international company you need a letter from the Ministry of Foreign
Affairs in Kenya written to South Sudan Foreign Affairs.
 Foreign Affairs will then write to the registrar of companies in South Sudan and
Ministry of Justice.
 All companies should have 31% local shareholding and 69% foreign
shareholding.
 To export horticulture products once you have registered a company and gone
through all the procedures you register with the Ministry of Agriculture.

3.3.1 PROCEDURES FOR STARTING A BUSINESS IN SOUTH SUDAN:-

Procedure 1:-

 Reserve the company name at the Business registry (Government of South

Sudan) and pay the fee.

Duration:1 day

Cost:15 SDG

Legislative Comments: Article 10.0 of the registration of business names Act

(2008) regulates of business names. It is noted that the Business Registry
applies it extensively.

Procedure 2:-

 Prepare the company documents before an advocate.

Duration: 2 days

South Sudan Market Survey-April 2012 Page 10

 Cost: 2,500 SDG

Legislative Comments: The use of an Advocate is optional by law(Article 17.2

Companies Act 2003 requires a statutory declaration regarding the particulars of
the company by an advocate or the director or the secretary of the
company).However the business Registry in practice requires it to be done by an
Advocate(registered lawyer).

Procedure 3:

 Apply for approval of the company registration at the Business Registry

(Government of South Sudan) and pay the fee.

Legislative Comments: Article 15-17 Companies Act 2003 established

registration requirements for companies and contains statutory memorandum
and articles of association.

Procedure 4:

 Pay the registration fees and obtain the certificate of incorporation from the
business registry(Government of South Sudan)

Duration: 1 day

Cost: 821 SDG

Comments: On completion of the application and approval, the entrepreneur

pays the fee to obtain the Certificate of Incorporation.

Procedure 5:

 Obtain an operating license from the Directorate of Trade and Supplies(State

Government of Central Equatorial.)

Duration: 2 days

Cost: 2000 SDG

South Sudan Market Survey-April 2012 Page 11

 Legislative comments: There appears to be no specific regulation concerning
this procedure however the Directorate of Trade establishes the fees through
appropriation bills i.e. the Appropriation Bill(2009) article 85 of the Central
Equatorial State Constitution (2006 as amended in 2008) provides the principle
allowing the state to collect fees.

Procedure 6:

 Obtain a Trading License from the payam (County Authority)

Duration: 2 days

Cost: 300 SDG

Legislative Comments: There is no specific regulation covering this procedure

but article 85 Central Equatorial State Constitution (2006 as amended in 2008)
provides the general principle allowing the State to collect fees.

Procedure 7:

 Obtain a tax ID card and a Tax Clearance Certificate from Revenue Authority
(State Government of Central Equatorial)

Duration: 1 day

Cost;1050 SDG(800 SDG State Development Tax + 150 SDG fee for Tax
Clearance Certificate +90 SDG for Tax ID Card + 10 SDG Stamp Duty)

Legislative Comments: There is no specific regulation governing this procedure,

but the Revenue Authority of Central Equatorial establishes the fees through
appropriation bills. In this case, Appropriation Bill(2009).Article 85 of the
Central Equatorial State Constitution (2006 as amended 2008) and the State
Revenue Authority Act(2007,amended 2008),provide the general principles
governing the Revenue Authority to collect fees.

South Sudan Market Survey-April 2012 Page 12

Procedure 8:

 Register with the Ministry of Finance (Government of South Sudan) and obtain
a Tax Identification Number (TIN)

Duration: 1 day

Cost: No cost

Legislative Comments: This was introduced with the enactment of the Taxation
Act 2009.Chapter III section 17 which established registration requirements.

Procedure 9:

 Registry with Ministry of Labour (Government of South Sudan)

Duration: 1 day

Cost: No cost

Legislative Comments: Part X of the labour Act of Sudan (1997) as amended

establishes that the company must deposit the basic and penalties regulations
with the competent labor office.

Procedure 10:

 Open a separate bank account for social security payments.

Duration: 1 day

Cost: No cost

Comments: As this time there is no social security fund administration or

institution operating in South Sudan, in the interim the Ministry of Labour,
Public Service and Human Resource Development issued circular (Circular
J/5/21, March 22,2010) instructing companies to open a separate bank account
to deposit social security payments until a new mechanism is formulated.

South Sudan Market Survey-April 2012 Page 13

Procedure 11:

 Obtain a company seal

Duration: 1 day

Cost: 90 SDG

Legislative Comment: Article 108.b companies Act 2003 requires companies to

obtain a company seal. The doing a business in Juba report, recommends
reform in the procedure namely to improve access to information/publishing
and regulation, streamlining procedures and reducing the cost of starting a
business.

According to the report US$ 3,077 is required for business registration in Juba
and 36.8% of monies paid account for advocate is optional by law, the business
registry requires it. A proposed alternative is for the business registry to
encourage small and less complex businesses to register without an advocate if
they choose to, relying instead on standardization formats for the memorandum
and articles of association contained in the law.

3.4 VAMP SUPERMARKET

This is the only supermarket selling horticulture products. They get their produce from
Uganda. They challenge they are faced with is high transport costs if vegetables and
fruits are gotten from Kenya as they have to pass through Northern Uganda to Nemule
border to the Central Equatorial state-Juba. This makes it uncompetitive for Kenyan
produce with Uganda produce as Uganda produce become cheaper than Kenyan
produce.

There is also the question of freshness as the Kenyan produce will not enter the market
while fresh mostly for the vegetables .However a lot of cheers, meat processed and M/s
Delmonte juices from Kenya is sold in the market.

To establish a supermarket there are licences required:-

South Sudan Market Survey-April 2012 Page 14

 1. Import license which is charged per tonnage imported,
2. Importers and exporters registration certificate which is 1000 dollars renewed
yearly
3. Trade license issued per state renewed yearly.

The cost of running business is expensive as refrigerators are run by generators which
consume up to 3,000 dollars worth of diesel per year.

3.5 MINISTRY OF COMMERCE

The ministry is mandated with the authority of facilitating trade. They are also
mandated to establish market infrastructure in different levels this is only for the open
market, the wholesale and retailers establish their own markets.

There is a vision 2040 which is very ambitious that was established for the country. The
different ministries have different strategic plan.

The ministry requires that while one is establishing a company in South Sudan you gain
acceptance from the Ministry of Justice for signing agreement with a local partner.
They also require to see the Articles of Association, Memorandum of Understanding
and the company profile. You are required to get an import licence, import export
license and trade license which are issued by the State Ministry.

A foreign investor may need to familiarize themselves with the investment act gotten
from the Ministry of Justice or Ministry of Trade, Investment and Commerce.

The duty on all goods is from 1-20% of the cost while VAT is less than 20%.

3.6 MINISTRY OF JUSTICE

The businesses or companies established to do import business in South Sudan have to

be registered by business registrar at the Ministry of Justice.

4.0 SOUTH SUDAN AGRICULTURE

The land in South Sudan is fertile and the climate is conducive planting. The rains are
from April to October while the rest of the months is sunny.

South Sudan Market Survey-April 2012 Page 15

  The green belt which is the Eastern Equatorial State, Western Equatorial State is
good for agriculture with good weather the rest of the land is good for
pastoralist.
 Land is owned by the private individuals, community and government although
technically the government doesn’t own land. To farm in South Sudan you lease
land from the community and the private sector.
 The horticultural produce imported is mostly meant for urban areas the bulk of
consumers are foreigners living in the urban area. The rest of the population is
pastoralist.
 Lately there has been introduction of vegetable production in along river Nile
with most of the vegetable being the amaranths.
 There are no processors available in South Sudan most of processed horticulture
produce comes from Kenya, Uganda and Egpty, Brazil for Sugar
 Generally they import from all over the world.
 Per capita income per person in South Sudan is high.

There are future plans of growing horticultural crops and exporting to the rest of the
world but as per now there is very little or almost insignificant horticultural production
around the green belt of South Sudan.

4.1 LAND OWNERSHIP

There is a land Act 2009 and Investment Promotion Act of 2009 which makes clear
provision to enable investors acquire land while the local communities owing land
remain protected. The land Act divides land into three categories: public land,
community land and private land. Investors may be allocated land by the nationals or
state government provided that:

 The investor obtains a certificate of investment from the Ministry of

Commerce,Indurtry and Investment

South Sudan Market Survey-April 2012 Page 16

  The investor obtains appropriate financial and environment clearance and
guarantees from the financial institutions and the Ministry of Environment
 The investment will contribute to the economic and social development of the
community giving out land
 The community will satisfactory be compensated for the allocated land
 The investor consent to a 30 years renewable lease for the agricultural
investment
 The investor consents to a 60 year renewable lease for forest investment
 Lease for investments in mining and quarrying will remain valid for life of the
mine and quarries investors may also be allocated community land for
investment in agriculture, forestry, ranching or residential housing development
provided the community is sufficiently consulted the land does not exceed 250
acres, the state administration office is fully involved and the land in question is
properly registered.

Non South Sudan citizen may acquire private land leasehold of up to 99 years through
private treaties for any investment.

4.2 WATER SOURCES

The river Nile is the dominant geographic feature in South Sudan, flowing across the
country. Another major river is river Yei flowing through Yei country in Central, South
Sudan is home to the world’s largest swamp, the SUdd which covers a total area of
30,000 square kilometer.

4.3 TRADE AGREEMENTS AND TRADE

There are no developed trade agreements so far. This means that South Sudan is not a
member of any regional agreement and international trade agreements. They are
however members of EGAD which is mostly involved with security and conflict
resolutions, they are also 193 rd member of United Nations ,World bank and IMF.

South Sudan Market Survey-April 2012 Page 17

There are plans to join the COMESA but they still haven’t established the
technicalities, they are still carrying out an analysis as they haven’t established
themselves and most goods and services are imported.

South Sudan is a major importing country it imports over 90% of the goods and
services in the country mostly from East Africa with Uganda dominating in horticulture
importation to the country.

4.4 INVESTMENT

Investment in South Sudan is governed by the Investment Promotion Act 2009.This

document offers certain guarantees among been non-discrimination between local and
foreign investors,free-market,private-enterprise,laissez fair approach which advocates
the efficiency of the free market mechanism, continued growth in the number of
Multinational Corporations and the increased number of FDIs.

South Sudan will adopt policies intended to attract FDIs based on clear vision, mission,
objectives, strategies and plan action this is intended to build a positive image through:

 Intensive and focused advertising in both print and electronic media

 Active participation in workshops,conferences,seminars,exhibition and fairs
 Encouraging inward and outward investment mission in which the private sector
is represented.

4.5 TECHNOLOGY IN SOUTH SUDAN

They have no landlines being used they use mobile phones with the major networks
being Gem tell and Vivacell.

Electricity is gotten from generators only which are powered by diesel with diesel cost
being approximately 6.5 pounds a litre.

Most of the produce is imported e.g. computers and IT materials being imported from
Kenya through the Mombasa port.

South Sudan Market Survey-April 2012 Page 18

The rate of building a house in South Sudan is three times the rate of building a house
in Kenya with Cement, iron sheet being imported from Kenya and Uganda.

4.6 MINERALS

South Sudan is rich on oil, minerals, Gold which is minimally exported. These minerals
remain heavily unexploited and there being no mining act there is no proper structure in
place on exploiting the minerals, however a mining bill is under way which will help
stream line the issues.

4.7NATIONALITY

 National Identification Cards are issued at birth. This is a very important

document which is also used to issue passport and certificate of birth.
 The official retirement age is at 55 years.

5.0 PESTEL ANALYSIS

POLITICAL FACTORS ECONOMIC FACTORS SOCIO-CULTURAL

Democratic space
Vibrant young GOSS
Peaceful transition
The oil crisis
FACTORS
GDP higher than Kenya Ethnic Animosity
GOSS open for business Cultural Practices
Booming economy High MMR and IMRs
Multiparty democracy Prevalence of illegal
weapon

South Sudan Market Survey-April 2012 Page 19

Tribal politics and ethnicity Untapped potential Xenophobia tendencies
Unfulfilled promises Vast resources Discrimination of
foreigners
Overlapping Government Growth rate of 7% Language barriers
structures
Managing Expectations Neighbour growing too Existing and returning
IDPs
Inter-tribal conflicts Strong Pound(SSP) Single parent households
High cost of doing business Goodwill for Kenya strong Generation gaps
Insecurity Resolution of disputes

TECHNOLOGICAL ENVIROMENTAL LEGAL FACTORS

FACTORS FACTORS
Very slow internet speeds Vast amounts of arable Fast improving regulations
land
Improved Mobile Favorable climate Fast-paced enactment of
telephony laws
Data services non-existent Vast mineral resources Investor guarantee
Lack of skilled man power The presence of landmines  Non discrimination
High cost of data Seasonal flooding  Intellectual property
connection rights
Lack of electricity-from Environmental degradation  Dispute resolution
dams
Overlapping Government Pollution  Repatriation
structures
High cost of ICT Vast water resources
Ineffective laws
Subsistence way of life

South Sudan Market Survey-April 2012 Page 20

5.1 SWOT ANALYSIS

STRENGTH
 South Sudan is a land locked
country and as such the Mombasa
port and Lamu port under
Construction are quite strategic
especially because the Lamu
project involves construction of
road and rail way connection
South Sudan to Kenya thus easy of
export of horticultural produce to
South Sudan.
 High levels of good will existing
for Kenya in South Sudan.kenya is
viewed in a very positive light by
the South Sudan government
having played a key role in the
signing of the CPA agreement and
the achievement of peace and
independence in South Sudan.
 The general security and political
stability of Kenya makes it an
ideal trading partner of South
Sudan.
WEAKNESS
 Poor infrastructure-roads and
railways linking Kenya and South
Sudan is in a very poor state
Kenyan horticulture and processed
horticulture have to be transported
through Uganda which reduces the
competitiveness in pricing and
fresh vegetables cannot last the
whole time thus cannot be exported
to South Sudan.
 Perceived lack of facilitation for
Kenyans interested in doing
business in South Sudan.
 High levels of competition from
neighbouring countries especially
Uganda as most horticultural
produce going to the Open market
i.e. Konyo konyo market come
from Uganda.

South Sudan Market Survey-April 2012 Page 21

OPPORTUNITIES
 There is a high opportunity for
Kenya to export horticulture to
South Sudan especially carrots,
potatoes, mangoes, avocado.
 With our large manufacturing
base, Kenya can process
horticulture produce i.e. make
juices from fruits, tomato paste,
fruit yoghurt and sell to South
Sudan market.
 There is a lot of experienced
human resource on horticulture
there is potential for capacity
building in South Sudan.
 Less than 10% of South Sudan is
farmed thus production
horticultural produce is low and
therefore South Sudan depends on
imports.
South Sudan Market Survey-April 2012
THREATS
 Insecurity among communities in
the northern part of Kenya
bordering Kenya and South Sudan
make it hard or almost impossible
to use the root to export
horticulture to South Sudan.
 Poor legal regime in South Sudan
its may discourage Kenyan investors.
The regime is weak especially for
purposes of enforcing contracts
and resolving commercial disputes.
 No proper custom facilities
between Kenya and South Sudan
thus exporters to South Sudan have
to use Nimule border which is the
border of Uganda and South
Sudan.
 Insecurity and instability in South
of Sudan especially against foreigners
who are being seen as “ benefiting
at the expense of indigenous South
Sudanese”
 The high cost of doing business in
South Sudan such as the high cost
of business registration, rent and
lease arrangements, high fuel cost
costing upto 6.5 pounds per litre.
 South Sudan pound is not accepted
Page 22
 as currency of trade in other
countries only in South Sudan.

View of South Sudan

South Sudan Market Survey-April 2012 Page 23

View of Jabel Market

View of South Sudan

South Sudan Market Survey-April 2012 Page 24

View of South Sudan

View of Juba town

South Sudan Market Survey-April 2012 Page 25

View of River Nile

View of River Nile

South Sudan Market Survey-April 2012 Page 26

6.0 ISSUES BETWEEN SUDAN AND SOUTH SUDAN

There has been security concerns in South Sudan with the North of the country being
locked with bombing from Sudan Republic the major issues are:-

 The borders are not well demarcated that being a problem between them.
 They have a problem with oil division and also the pipe their crude oil to Sudan
and lately the Sudan is charging them 32 dollars per barrier while the rest of the
world is being charged less than 0.5 dollars this has led to crossing of the oil
pipes to Sudan port.
 The Nile treat – the Nile water was divided between Egypt 55%, British 27%
and Sudan 18%.As the country was divided to Sudan and South Sudan, South
Sudan want a part of River Nile from Sudan but Sudan says South Sudan should
have zero percent and depend on rain water.
 Sudan wants South Sudan to help them pay the loans they incurred in building
their country.
 South Sudan wants a share of the profits of the companies in Sudan as they
claim to have built the companies together before the country was divided into
two.

6.2 CHALLENGES OF INVESTING IN SOUTH SUDAN

1. South Sudan is facing political uncertainty many key areas of the CPA have not
been implemented in a satisfactory manner.
 The demarcation of the North-South border.
 The sharing of oil revenues
 The Abyei issue
 Popular consultations in Southern Blue Nile where the Nile River is owned
by Britain 27%,Egpty 55% and Sudan the remaining 18%,South Sudan
wants a share of the river Nile because at the moment it doesn’t have a share
of river
 Distribution of assets and international debts, oil fields, production and
transport, public service and pensions

South Sudan Market Survey-April 2012 Page 27

  Ethical conflict is widespread due to competition over natural resources .
 Sudan has been classified by the transparency international as one of the
most corrupt countries.
2. Public institutions are still weak in South Sudan.
3. The cost of transport, telecommunication, financial services, water and
sanitation services, power supply are a major concern for investors who cannot
do without these utilities.
4. The financial sector remains in South Sudan remains very ineffective due to
limited banking networks with only seven banks operating i.e. Kenya
commercial bank, Equity bank, Agricultural Bank of Sudan, Buffalo bank,
Commercial bank of Ethiopia, Ivory bank and Nile Commercial Bank.Non bank
financial institutions that offer loans are even scarcer .
5. Insurance companies are only limited to Juba city.
6. High level and multiplicity of taxes and poor tax administration is another
problem. This is particularly true in the border towns. High taxes and
burdensome tax administration are consistently listed as some of the obstacles to
investing in South Sudan. The tax system is complex and lacks transparency,
creating confusion to entrepreneurs.
7. Although land is abundantly available in South Sudan, there are difficulties in
acquiring ownership, this problem is mostly acute in Juba the city of the
country.
All these situations raise the cost of doing business in South Sudan and can
discourage investors.

South Sudan Market Survey-April 2012 Page 28

7.0 RECOMMENDATION

 There is need to lobby for construction of a road to improve the road network
between Kenya and South Sudan, this will make it easier for horticultural
produce to go directly to South Sudan without by passing through Uganda, this
will ensure our produce remain fresh, competitive and give as an edge in export
of horticulture to South Sudan.
 We need to invest in capacity building of Kenyans on the South Sudan market
as many Kenyans have not opened up to the market making Uganda dominate
the horticulture sector in South Sudan.
 The Kenyan government should come into agreement with South Sudan to
enable Kenyans lease land in South Sudan and invest in horticultural farming in
South Sudan this is as per our discussion with Ambassador Leshore
Ambassador of Kenya to South Sudan-Juba.
 Due to the threatening war between South Sudan and Sudan at the time of the
market survey the market survey was only carried out in Central Equatorial
State which is the major State in South Sudan with Juba as the Capital, its thus
important that we carry out a follow up survey on the other state especially
those lying in the green belt.
 There is opportunity for HCDA to do capacity building on South Sudanese on
horticulture farming and consumption.
 There is need to encourage horticultural production in the Northern Province
mostly along Turkana, Lokichogio and other semi-arid areas bordering South
Sudan to the North of Kenya and export to South Sudan.
 There is also a lot of opportunity in seedling and seed export to South Sudan
this could be a lucrative horticultural business that can be carried out by
Kenyans and improve the horticulture industry in Kenya.

South Sudan Market Survey-April 2012 Page 29