Africa

May 12, 2018 (KHARTOUM) - The Sudanese-Ugandan political consultation committee would hold its third meeting on Sunday in Khartoum.

The Sudanese side would be headed by the Foreign Ministry Under-Secretary Abdel-Ghani al-Nai'im while the Ugandan side would be headed by the Permanent Under-Secretary of Uganda's Foreign Ministry, Patrick Samuel.

The two sides would discuss a number of issues of common concern including ways to promote bilateral relations especially on economic, trade and technical fields as well as coordination of positions in the regional and international forums.

Also, the meeting would discuss the outcome of the President Omer al-Bashir's visit to Uganda last November besides the ongoing preparations to hold the joint ministerial committee between the two countries in Kampala during the next months.

Following ten years of strained relations, Museveni visited Khartoum in September 2015 where he and al-Bashir agreed to work together to bring stability in South Sudan and the region, and to end tensions between the two countries over the issue of rebel groups.

The Year 2016, witnessed a steady rapprochement between the two countries, accelerated, by the South Sudanese civil war and their joint efforts to end the crisis in the neighbouring nation.

The visit of President Museveni to Khartoum in October 2016 to take part in the closing conference of the government-led national dialogue was seen as a turning point in the relationship between the two countries.

In September 2016, the Ugandan government facilitated informal talks between the Sudanese government and armed groups in Darfur and Sudan's Blue Nile and South Kordofan areas, in a bid to support the African Union High Implementation Panel (AUHIP) efforts to bring peace in the east African country.

(ST)

May 12, 2018 (JUBA) - South Sudan's government delegation to a recent meeting with IGAD mediators has reiterated its rejection to the personal participation of the exiled former first vice president Riek Machar in the future transitional administration.

Riek Machar, center, walks to be sworn in at the presidential palace in the capital Juba, South Sudan Tuesday, April 26, (Photo AP/Jason Patinkin)

Juba declared its position in a consultations meeting held in Addis Ababa from May 10-12, 2018 including the government, the SPLM-IO and other groups, as the IGAD mediation on the other side has invited the stakeholders for the next peace forum from May 17-21, 2018.

"Our team met and gave the mediation our proposal giving out the way forward. We accept sharing of responsibilities and if this means a new agreement that results in the formation of the new government, we are ready for it," a member of the government delegation told Sudan Tribune on conditions of anonymity.

"We, also, made it clear that the responsibility sharing should not be a return to the conflict," he said adding the SPLM-IO "should be represented in the government if all they want is peace and stability to return instead of insisting on his participation".

However, the officials said they do not want to repeat the past experience. Also, he added that they cannot accept "people who do not agree to work (with the government) return to the same position" in allusion to Riek Machar

"Salva Kiir and Riek have taken the issues of the country personal and this makes it difficult to bridge the gap or even a consensus whenever they are given the opportunity," he emphasized.

The SPLM-IO in the past refused the exclusion of its leader from the government insisting that Juba cannot dictate who would represent the group in the interim government.

South Sudanese officials used to accuse Machar of being behind the bloody clashes that erupted in Juba on 8 July 2018 at the presidency between forces loyal to Machar and the presidential guards.

However, a UN conditional report revealed by the Associated Press in September 2016 claims that President Kiir and the then SPLA chief of staff Paul Malong Awan prepared and directed the fighting in Juba that led to the collapse of the transitional government and resumption of civil war in the country.

The consultations meeting tackled the outstanding issues in the power-sharing and the security arrangements.

In a related development, a member of the South Sudan Opposition Alliance told Sudan Tribune they continue to demand exclusion of President Salva Kiir and SPLM-IO leader Riek Machar from the government if the result of the agreement was to be implemented.

Here again, Juba maintains its refusal for any proposal aiming to exclude President Kiir from running in the elections that would be organised at the end of the interim period.

(ST)

Nigeria's star shot-putter Lauritta Onye on her rise to Paralympic gold and stardom.

How did Cape Town - on the verge of being the first city to run out of water - come back from the brink?

By Golda Abbe

After much speculation spanning years, the government of South Sudan finally announced the total lifting of fuel subsidies. This follows an ailing economy on the back of gross mismanagement, lack of hard currency, a civil war and increased US sanctions. The government have run out of strategic reserves at the limited fuel storages available.

In the 2017/2018 budget, Nilepet's overspending of allocations was deemed a primary risk and recommendation was made to restrict the fuel price support to balance the national budget.

Officially fuel will increase from 22SSP /litre to currently trading at estimated 280/300SSP/litre.

Planning for the subsidy removal has been ongoing. Since the start of 2018, the open market has been operational. Ordinary folks have been purchasing from the pump at $1/litre, drastically reducing queues. The official rate was reserved only for government establishments, public transportation, and water tankers.

Those who benefitted most from the fuel subsidies were those who consumed most, who happens to be the better off, with private vehicles and generators. The poor were disproportionally disadvantaged, although basic needs such as water are universal.

Expect cyclical inflation to increase as the rising costs are factored in prices. Higher transportation costs will result in higher food and non-food items. Businesses will be affected.

The fuel subsidy has been very popular but costly. It's distribution through the national oil company Nilepet, now under US sanctions, have given the company a bad reputation, including blamed, a conduit for government illicit trades. It never imported enough to meet demand, the gap met by private distributors selling at the dollar mark.

The subsidy costs the country an estimated $183million as per the 2017/2018 budget estimates. This does not take into account market and other distortions. Although the subsidies are to protect consumers from high and volatile prices, the costs of the subsidy were unsustainable.

Keeping the domestic price of fuel artificially low didn't encourage investment in the sector either, as it made it a challenge to recoup the investments.

The lawmakers of South Sudan had rejected lifting the fuel subsidy. The government went ahead anyway. Governments are often reluctant to pass on the full cost of rising fuel prices to citizens, as higher fuel prices negatively impact people's real income, consumption and the country's economic production.

It will be a political dilemma in the short run unless the government can show the funds are redirected to other worthy causes and done in a structural and transparent manner.

It is not clear if the government will be implementing post-subsidy programs in the form of social safety nets. However, the government's communique explains the subsidy funds are to be redirected to civil servant salaries. Whether the people believe it is a credible plan, is a different matter.

Deregulation to allow private distributors to import to their full capacity without government's restriction in the form of import approval would go a long way. It will also reduce hoarding, smuggling and diversion substantially and stabilise the price at the actual product price. Allow the free market forces to determine the price, as well as review fuel taxes and customs costs.

It is widely acknowledged that subsidies encourage overconsumption and inefficient resource allocation, it is hoped subsidy reforms will bring structural changes at all economic levels. The logic goes fuel subsidy incentivises more consumption of the product, and this higher consumption increases the cost of the subsidy.

$1= 300 SSP

G. T. Abbe writing for Ghidam Advocacy.

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