Government accused by traders of fueling price hikes

JUBA – South Sudanese traders are pointing the finger at government institutions responsible for revenue collection, accusing them of contributing to price hikes that have unleashed burdened the country’s citizens.

This comes amid growing public outcry over the rising cost of both food and non-food items in the market.

Mahamed Elhassan, a motorcycle spare parts and mattress seller, told Sudan Post on Tuesday that traders like himself are caught in a squeeze.

They face fluctuating prices from suppliers while simultaneously being hit with unexpected and hefty revenue demands at the border in Nimule and within Juba itself.

Elhassan provided an example, stating that he paid SSP 5,000 in border clearance fees for a recent shipment. However, upon attempting to import another batch of goods, he was informed by officials that the fee had unexpectedly increased by at least 100 percent.

Such abrupt changes, he claims, leave traders with little choice but to raise prices to recoup their costs, ultimately impacting consumers.

“It would be better for [revenue collectors] to announce changes in advance, like saying, ‘starting next month, revenue will increase to this amount,’” Elhassan suggested. “Sudden hikes without notice leave us with no option but to raise prices, which hurts the buyers.”

His concerns were echoed by Matia Bonfas, a clothing vendor. He too blames the unreasonable demands placed on businesses for contributing to the price spiral.

“They demand exorbitant fees that are beyond what our businesses can generate,” Bonfas lamented. “This, forces us to raise prices just to break even, and ultimately, it’s the consumers who suffer.”

These accusations come against the backdrop of a broader economic crisis in South Sudan. In January 2023, Rose Napoli, a resident of the Nyakuron West suburb, told local media that the cost of basic items like tomatoes and meat had doubled, leaving many struggling to afford essentials.

Experts have offered varying explanations for the price hikes.

Robert Pitia, chairperson of the Central Equatoria State Chamber of Commerce, attributed them to a surge in the dollar exchange rate and the high cost of road fees for goods trucks.

However, Professor Morris Madut, head of the Economics Department at the University of Juba, disagrees.

He argues that the primary driver is not the dollar rate but rather the country’s heavy reliance on imported goods due to low domestic production.