Issafrica.org: Too much at stake for South Sudan to expel foreign workers

From: Berhane Habtemariam <Berhane.Habtemariam_at_gmx.de_at_dehai.org>
Date: Mon, 6 Oct 2014 22:10:26 +0200

Too much at stake for South Sudan to expel foreign workers

6 October 2014

On Tuesday, 16 September, the government of South Sudan ordered all
non-governmental organisations, private companies, banks, insurance,
telecommunication and petroleum companies, hotels and lodges to notify all
foreign employees to cease working by 15 October.

It said the resulting vacancies, ranging from receptionists to company
directors, should be filled by government-vetted South Sudanese nationals.
However, on Wednesday 17 September,
<http://www.iol.co.za/news/africa/s-sudan-to-revoke-ban-on-foreign-workers-1
.1752571> the country reversed its decision after intense lobbying by
diplomats.

South Sudan emerged from the longest and most destructive war in African
history, which left over two million people dead and more than four million
displaced.

Decades of war continue to affect the new nation significantly, especially
in human resource development. Despite significant efforts since the signing
of the Comprehensive Peace Agreement (CPA) in 2005, South Sudan continues to
have some of the worst development indicators on the continent, in spite of
its abundant natural resources. This is
<http://www.issafrica.org/iss-today/cutting-corners-in-the-south-sudan-peace
-process> largely due to protracted conflict.

The country's economy is entirely dependent on oil: on average, 98,7% of
total government revenue has been derived from oil since 2005.
<http://www.jdt-juba.org/wpcontent/uploads/2012/02/South-Sudan-Development-P
lan-2011-13.pdf> According to the South Sudan Development Plan, education
and health indicators are among the lowest in the world, reflecting the
impact of ongoing conflict and limited provision of social services. Only
27% of the entire population is literate, compared with 87% in Kenya, and
less than half of all primary school-age children are in school (51% of boys
and 37% of girls).

Trade in South Sudan has been highly localised and predominantly sourced
from neighbouring countries. The local manufacturing sector is relatively
insignificant, with very little agricultural produce and livestock being
generated and raised for export. In essence, South Sudan is a net importer
of goods and services and suffers from a major shortage of skilled workers.

The move to expel foreign workers came at a time when South Sudan, Kenya and
Ethiopia are partnering in a mega transport project, the Lamu Port-South
Sudan-Ethiopia-Transport (LAPSSET) Corridor. The ban, which covered all
foreigners, <http://mediamaxnetwork.co.ke/peopledaily/?p=106372> was seen
as mostly targeting Kenyans, since more than 70% of foreign workers in South
Sudan are believed to be from Kenya.

Corruption has also heavily affected the young nation. Since 2005, after the
CPA, the government has lost significant amounts of public funds to corrupt
officials; money that should have been invested locally to create employment
opportunities. In 2012, President Salva Kiir said that Sudanese officials
stole an
<http://www.reuters.com/article/2012/06/04/us-southsudan-corruption-idUSBRE8
530QI20120604> estimated US$4 billion of public money, which could not be
accounted for.

With only a quarter of the adult population being literate, it is clear that
the country does not have sufficient manpower to support the private and the
aid sector. Neighbouring countries have continued to offer support to South
Sudan to build the capacity of local human resources, and to offer hands-on
job training to civil servants, aid workers and others.

After the current crisis, which started in mid-December 2013, several
foreign workers have left the country. Despite noble concerns of
unemployment, expelling more workers will only be detrimental to the word's
youngest nation.

 
<http://www.worldaffairsjournal.org/content/south-sudan-recall-order-expel-f
oreign-workers> According to a Kenyan daily, the Nation newspaper, the
country has backtracked on the issue three times now in under three years.
Two previous decisions were called off, also after criticism from
international community. There are thousands of skilled workers and
investors in South Sudan, but the country does not have labour laws to guide
employment as it relies on Khartoum labour law.

With previous attempts to recall foreign workers having been halted, the
relationship between expatriates and the local staff and populace has not
been smooth either. The government's pronouncements
<http://thinkafricapress.com/south-sudan/juba-xenophobia-uganda-traders>
have led to the harassment and targeting of foreign workers and investors.
Since becoming independent in 2011, crime has continued to rise, especially
in Juba. Investors from all over the world have expressed interest in the
new nation. However, political and economic instability, insufficient levels
of human capital, poor infrastructure and a lack of policy towards foreign
direct investment (FDI) have been significant obstacles to investment.

Despite the need for increased nationalisation in South Sudan, this must be
well planned. Drastic changes towards the nationalisation of the work force
will have tremendous effects on the private sector and the current
distribution of emergency aid. South Sudan should move very fast to restore
the relationship between foreign workers and locals.

The current threats and discrimination against foreign workers is not
healthy for national growth and prosperity. Moves to expel foreign workers
may undermine
<http://www.issafrica.org/iss-today/south-sudan-crisis-is-there-hope-for-a-d
urable-solution> the ongoing peace process being led by Inter-governmental
Authority on Development, as well as affect South Sudan's integration into
the East Africa Community and other regional blocks. The country should
focus on investing in its people and accelerating human capital development.

This may take some time, but any shortcut would be defeatist and
unsustainable. Conversely, the foreign community should aim to build the
capacity of the South Sudanese in various sectors to ensure increased
knowledge and skills necessary for the young economy.

Sebastian Gatimu, Researcher, Governance, Crime and Justice Division, ISS
Nairobi

 
Received on Mon Oct 06 2014 - 16:10:24 EDT

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