Uganda and South Sudan have signed a memorandum of understanding (MoU) on trade, with officials pledging to establish joint technical committees to oversee its implementation and address delays, high costs and other barriers affecting cross-border trade.
The agreement was signed on Wednesday in Kampala during the second Uganda-South Sudan Business Forum and Exhibition, held at Mestil Hotel under the theme, “Easing the Cost of Doing Business and Unlocking Regional Market Opportunities for Uganda and South Sudan.”
Uganda's Minister of State for Industry, David Bahati, and South Sudan's Minister of Trade and Industry, Dr Labanya Margaret Mathya, signed the agreement, which officials said covers trade promotion, information exchange, investment facilitation and the monitoring of commitments made by both governments.
Uganda's Ambassador to South Sudan, Brigadier General Ronnie Balya, said the joint technical committees would ensure that the commitments made during the forum are implemented after delegates return to their respective countries.
He said the committees would be supported by a joint communiqué, a roadmap outlining timelines and measurable outcomes for resolving border-related challenges, and regular review meetings.
Bahati said the agreement should be judged by its practical results rather than the signing ceremony.
“We should judge the success of the MoU not by the signing ceremony alone,” he said, adding that its success would depend on the trade barriers removed, investments realised, businesses established and jobs created.
He said the agreement should provide a practical framework for regular consultations and structured engagements through which the two governments could agree on and implement their commitments.
Bahati said trade between the two countries remained heavily skewed in Uganda's favour, with Uganda exporting goods worth $524 million to South Sudan, compared with exports worth $22 million from South Sudan to Uganda.
“We need South Sudan. As much as you need us, we also need you,” he said, attributing part of the trade imbalance to differences in population, which he put at 46 million for Uganda and 12.4 million for South Sudan.
He said Ugandan traders and transporters continued to report delays associated with South Sudan's electronic permit system, repeated cargo verification, multiple checkpoints, unofficial charges and inconsistent clearance procedures along the Kampala-Gulu-Nimule-Juba corridor.
Bahati called for an urgent review of the electronic permit system to improve transparency, eliminate duplicate assessments and payments, clarify applicable charges and establish mechanisms for resolving disputes.
He also noted that the one-stop border post constructed by Uganda at Elegu could not deliver its full benefits without corresponding facilities and coordinated operations at Nimule, on the South Sudanese side of the border.
Bahati urged both countries to prioritise trade in goods they produce locally instead of relying on the re-export of imported products.
He also called for cooperation in steel production, noting that Uganda spends approximately $1 billion annually on steel imports, while both countries have substantial iron ore deposits.
Dr Labanya thanked Uganda for hosting her delegation and described Uganda as one of South Sudan's priority trading partners and a major source of goods for its market.
She said a high-level committee established by President Salva Kiir, on which she serves, was working to reduce non-tariff barriers affecting trade.
According to Labanya, requirements relating to alien registration had been abolished and obstacles associated with visa payments had been removed, although foreign nationals working in South Sudan were still required to obtain work permits.
Her assurances came amid concerns raised by Ugandan traders ahead of the forum, following reports of a possible restriction on foreign nationals participating in South Sudan's retail trade, which the government in Juba had disowned.
Labanya acknowledged security concerns in some parts of South Sudan but maintained that Juba remained accessible, pointing to fully occupied flights and buses travelling to the capital.
She also cited the presence of Ugandan chapati makers across South Sudan and the availability of Ugandan products in Juba's Konyokonyo Market as evidence of the close economic ties between the two countries.
“South Sudan welcomes all investors of every kind,” she said, adding that President Kiir was committed to maintaining trade relations with Uganda.
Uganda's Minister of State for Foreign Affairs in charge of Regional Cooperation, Haruna Kasolo Kyeyune, who closed the forum, described the agreement as a positive step but cautioned that its value would depend on implementation.
“The significance of the MoU will ultimately depend on its implementation,” Kasolo said.
He urged ministries and government agencies in both countries to strengthen coordination, establish clear follow-up mechanisms and maintain private-sector involvement in efforts to improve trade.
He also highlighted the importance of commitments under the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) in addressing trade barriers and promoting regional integration.
Balya, who has served as Uganda's ambassador to South Sudan since 2017 and previously headed the Internal Security Organisation, said the forum provided an opportunity for both business communities to assess progress in bilateral trade relations.
“Are we progressing? Are we degenerating? Are we stagnating?” he asked.
The two countries have previously set ambitious trade targets. When the forum was launched in 2022, Uganda announced plans to increase bilateral trade from $400 million to $1 billion.
Uganda's Ministry of Finance now estimates annual exports to South Sudan at approximately $500 million, while United Nations figures indicate that South Sudan exported goods worth about $21.5 million to Uganda in 2025.
Balya said the proposed committees and implementation roadmap formed part of broader efforts to strengthen bilateral cooperation following a meeting between President Yoweri Museveni and President Kiir in Juba last year.
During that meeting, the two leaders called for joint border meetings to address trade, security and immigration issues.
Balya said an upcoming Joint Permanent Commission meeting was expected to advance these efforts.
South Sudan's Ambassador to Uganda, Paul Malong Akaro, defended the electronic permit system, saying it had improved revenue collection and border clearance since it was introduced jointly with the Uganda Revenue Authority last year.
He urged the revenue authorities of both countries to use existing mechanisms to address concerns arising from the system.
Akaro said South Sudanese traders also faced challenges, including difficulties accessing Ugandan manufacturers and distributors directly and concerns that transporters based in Juba from other neighbouring countries appeared to dominate the supply of Ugandan goods.
“Our traders don't have access to manufacturers to buy goods from Uganda,” he said, adding that the issue had been raised with Uganda's Ministry of Trade.
He also called on the Uganda National Bureau of Standards and the South Sudan Bureau of Standards to address difficulties encountered by South Sudanese exporters of dried fish transiting Uganda en route to the Democratic Republic of the Congo.
“South Sudan remains open for business,” he said.
Vincent Bagiire Waiswa, the Permanent Secretary in Uganda's Ministry of Foreign Affairs, said the first Uganda-South Sudan Business Forum, held in Juba in July 2022, had provided a platform for both countries to discuss economic issues.
He expressed hope that the Kampala meeting would help resolve some of the persistent challenges facing traders and strengthen commercial relations between the two countries.
South Sudan gained independence from Sudan in 2011 and joined the East African Community in 2016. Both Uganda and South Sudan are also members of the Intergovernmental Authority on Development (IGAD).
The latest agreement is intended to strengthen bilateral trade and investment, although its ultimate success will depend on the implementation of agreed measures to reduce trade barriers, improve border operations and create a more predictable business environment for traders in both countries.