Too much at stake for South Sudan to expel foreign workers
South Sudan should focus on investing in its people and accelerating human capital development.
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, 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 largely due to protracted conflict.
The country reversed its decision after intense lobbying by diplomats |
The country’s economy is entirely dependent on oil: on average, 98,7% of total government revenue has been derived from oil since 2005. 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, 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 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.
 Only 27% of the entire population is literate, compared with 87% in Kenya |
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.
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 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 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
