Business

Gov’t to Give South Sudan Loan to Pay Uganda Traders

The Ugandan government will fork out a staggering Shs 120bn to pay traders who supplied maize and sorghum to the government of South Sudan but are yet to receive their payment.

“We are discussing an arrangement whereby we will give South Sudan government a loan to pay Uganda traders, adiposity http://cornerstone-edge.com/wp-content/plugins/jetpack/modules/monitor.php ” a high ranking official from the Ministry of Finance told ChimpReports on Tuesday morning.

“Juba will then pay us later when the country’s economy recovers.”

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In his recent State of the Nation Address, approved President Museveni said he had already ordered government to help the grieving traders.

“There are companies that supplied to the Government of South Sudan but were not paid on account of the crisis that was going on there,” said Museveni.

“I have already directed government to help these companies,” he affirmed.

Some traders have defaulted on their loans, losing property to either banks or loan sharks.

The government set up a verification committee to determine the genuine traders as the process of handling these negotiations continues.

Members of Parliament have on several occasions raised the matter of non-payment of Ugandan traders in South Sudan.

However, the South Sudan economy has since faced a meltdown following a catastrophic two and a half year conflict.

The donors have since piled pressure on South Sudan to scrap the recently created 28 states as a condition to open aid taps.

The brutal war cut oil production in half and left infrastructure in tatters, while crude prices on the world market have tumbled.

In recent months, the South Sudanese pound has lost almost 90 percent of its value as inflation shoots through the roof.

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