Since Sudan’s Comprehensive Peace Agreement (CPA) was signed in 2005, its border with Uganda has become a hub of activities. These economic activities have been enhanced by ethnic and political relations, but also by diplomatic relations between the two countries. Contrasting developments on the Ugandan side of the border with those on the South Sudanese side, this research draws on empirical fieldwork to examine the impact of diplomatic relations on the development between both countries since 2005, with international trade as the main aspect of development. The study sets out to show how trade between both countries has been affected by the diplomatic relations between them. The post-CPA demand for goods and state-building processes created a range of economic opportunities for traders. This was particularly the case for Ugandan large-scale traders who, as a result, became an important and empowered group. These factors have further been enhanced by good diplomatic relations between both countries, and as a result South Sudan has become Uganda’s most important trading partner as well as a destination for many Ugandans to conduct their trade. Simultaneously, post-conflict problems have emerged in South Sudan such as insecurity, weak government institutions run by incompetent officials, corruption, high foreign exchange rate, cultural diversity, mistrust and poor infrastructure. These problems have emerged as major challenges to trade and investment by Ugandan traders in South Sudan with traders as well as government officials agreeing that these challenges present major setbacks to trade and investment in South Sudan. Ugandan small-scale traders in particular have become more vulnerable to expressions of authority on the part of South Sudan’s post-CPA state, in which state or individual military might is used effectively to control trade. The current conflict, which began in December 2013, has added a new dimension to the list of impediments to trade as insecurity and economic instability have precipitated an atmosphere of uncertainty among many traders and investors. Despite all those challenges, Ugandan traders as well as government officials still view South Sudan as a business destination of choice. Overall, the study confirms that diplomatic relations have enhanced international trade between South Sudan and Uganda by way of solving trade disputes, investment promotion and influencing leadership on policy matters.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:28226 |
| Date | January 2016 |
| Creators | Legge, Mikaya Modi Lubajo |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MA |
| Format | 49 leaves : map, pdf |
| Rights | Nelson Mandela Metropolitan University |
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