KARA AUGUST 2011 ISSUE.indd

SOUTH SUDAN
Opportunities
and challenges in
South Sudan
The declaration of independence
on July 9 was a momentous
occasion for millions of South
Sudanese, who had endured the policy of
oppression and segregation by the mainly
Arab North.
It was not only them celebrating, but
they were joined in the celebrations by other
countries in the region that have also seen
the upsides.
That Nairobi is interested in Juba is an
open secret and the interest palpable. It is
not just Nairobi but the entire region. Kenya
started courting Juba way back during its
fi ght for independence. Kenya provided a
venue for negotiations leading to the signing
of peace agreement in 2005.
A pledge for $3.5 million (Sh315 million
by current rates) assistance to train South
Sudan’s nascent civil servants on January
5 this year, just came as the icing on the
cake as Nairobi woos Juba to its side. The
offer of $3.5 million came just three days to
the historic separation referendum in South
Sudan.
South Sudan holds about 4.8 billion
barrels of proven oil reserves. This is what
Kenya needs- affordable oil that the South
can easily provide. Besides, Juba now
hosts about 70,000 Kenyan entrepreneurs
as well as workers with international Non-
Governmental Organisations.
There have been suggestions that Juba
authorities are considering constructing a
pipeline across Kenya to the Coast from
where it can export. At the moment, its oil
has to pass through Khartoum from which
it has just seceded. If that were to happen,
Kenya would greatly benefit from cheaper
oil and an accompanying boost to the
economy.
More than the oil, unemployment
among young people - including university
graduates - has long been a big problem
in much of Africa. Kenya is no exception.
South Sudan, having been at war for two
decades has a high illiteracy rates. The new
country will therefore need to import labour.
“Well, it now seems that the longstanding
problem of unemployment among educated
youth may be substantially reduced through
a piece of good fortune that Kenyans - and
Ugandans - are trying very hard not to gloat
over,” says Wycliffe Muga, the BBC World
Service correspondent for “Letter from
Africa”.
For the thousands of Kenyans who work
in South Sudan, life could only get better.
“The place is fine and the celebration mood
is driving business,” says Jacob Oduor who
left Nairobi for Juba in 2010. It is not only
for individuals but Kenyan banks have also
set base in Juba and Rumbek and are doing
brisk business. They include KCB, Equity
and Co-operative Bank of Kenya among
others. Kenya Airways and other budget
airlines like Jetlink too fly the Nairobi-Juba
route.
For the Intergovernmental Authority
on Development (IGAD), an independent
South Sudan means less headache as far
as regional security is concerned. Focus
could now shift to the lawless Somalia as
the region battles to curb insecurity and
unhindered human suffering.
But it is not all rosy for the neighbours.
16.