GoSS Trade Ministry to Develop Private Sector

UNCLAS SECTION 01 OF 02 KHARTOUM 000667 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV ETRD PINR SU SUBJECT: GoSS Trade Ministry to Develop Private Sector ¶1. SUMMARY: The main focus of the Government of Southern Sudan (GoSS) Ministry of Commerce, Trade and Supply will be to develop the private sector in the region. In a March 8 meeting with CG Juba, Minister Anthony Lino explained that southerners have never really worked in the private sector, which has been dominated by northern Arab traders since independence. Makana said his small ministry would mostly work with other ministries, such as finance, public utilities, transport, and agriculture, to create a positive business environment and establish public/private partnerships when advantageous. Makana requested a USG technical advisor assist in establishing the ministry and developing policy. End Summary. -------------- No History of Business -------------- ¶2. According to Makana, southerners have never really worked in the private sector. He said that since independence, all private business was controlled by Arab traders from the North, leaving government as the only employment option for southerners. Everyone else was involved in little more than subsistence farming, as they also lacked any development in commercial agriculture. Either way, he said, there are limited opportunities to generate wealth, and few southerners are accustomed to thinking in entrepreneurial terms. -------------- Priorities for Growth -------------- ¶3. The two biggest priorities for the Ministry of Commerce will be to attract investment in infrastructure development, such as electricity and housing, as well as investment in commercial agricultural and the eco- sensitive foresty sector. The ministry would also like to revive the industrial complex at Nzara, which produced manufactured basic goods such as soap and textiles, and processed sugar and cotton until it was closed at the beginning of the civil war. Makana pointed out that virtually all his projects are done in cooperation with other ministries, and that the Ministry of Finance is taking the lead in many commercial development activities, such as private sector regulation and establishing tariffs, taxes, and government loans. He would like to attract foreign business to Southern Sudan, but he said that they would most likely be required to have a local partner. The exact percentage of local ownership has yet to be decided. Like many GoSS ministries, the primary role of the commerce ministry will be to facilitate and set policy, while actual implementation will fall on the states. The ministry plans on having a director general in each state. -------------- Building a Ministry -------------- ¶4. Makana is currently focused on establishing his ministry. He said that most of his employees are former SPLA soldiers with little to no business experience. He said that VEGA, a USAID implementing partner, has already assisted with some training and that the British development Agency, DFID, has given USD 100,000 for office equipment. More, however, is needed. Makana asked if the USG could provide a technical advisor, perhaps with a background that includes commercial law, to assist with organizing the ministry and establishing policies. ¶5. The Supply part of the ministry's title is an anachronism according to Makana. It is a legacy of the original 1972 southern government, when his predecessor agency was responsible for supplying goods to local cooperative stores in a system very similar to colonial plantation company stores. Makana would like to separate the ministry from that history, but he said the Council of Ministers refused to drop "Supply" because it does not fully understand the context. ¶6. Bio Note: Makana is originally from Yambio, although his mother is from Juba. He holds a degree in business administration and a master's degree in post-war reconstruction from the University of York. He said he was working on a second master's in economic development when John Garang asked that he return to the south to assist the SPLM. He has been the project manager for a USAID-funded CARE project. Unlike most GoSS government officials, Makana never served in the SPLA. KHARTOUM 00000667 002 OF 002 HUME