The Parliamentary Committee on National Economy has recommended for entry into a bilateral agreement between Uganda and South Sudan to pay monies owed to Ugandan traders amounting to over forty one million dollars.
In its report, the committee wants Uganda to pay the money to the verified traders under their umbrella organization, the Uganda Southern Sudan Grain Traders and Suppliers Association Limited and, according to the committee chaired by Nakaseke North MP Syda Bumba, the money is to be repaid by South Sudan within a five-year period ending December 2022.
On December 18, 2015, during a meeting in Juba, the Government of the Republic of South Sudan (GoRSS) proposed that Uganda pay the said sum with a view of reimbursement subject to terms of the bilateral agreement.
The list of Uganda verified traders includes Rubya Investments Limited, Kibungo Enterprises, Aponye (U) Limited, Afro Kai Ltd, Swift Commodities Establishment Ltd, Sunrise Commodities, Ms. Sophie Omari, Apo General Agencres, Ropani International and KK Transporters, with Aponye (U) Limited owed the highest sum of money to the tune of UD$13, 542, O92.61.
Meanwhile, the MPs also want Ugandan traders to insure their business engagements against various risks when participating in cross border trade.
“Informal business operators should register their business with Uganda Registration Services Bureau (URSB) and regularly file returns with URA; while at the same time enter into formal contracts with recipients of their goods and services,” the report emphasized.
Further, the government should partner with financial sector players to establish an Export Credit Guarantee Scheme for exporters to minimize financial risks associated with volatile export markets, the report adds.