Ugandan army to remain inside South Sudan

Budget documents presented at the Ugandan government’s defense and internal affairs committee indicates the Ugandan military (UPDF) will remain deployed in South Sudan for at least another year.

The information surfaced during committee hearings for the Defense budget, which showed Ugandan taxpayers will have to pay an extra 16.2 billion Ugandan shillings in the next financial year for the UPDF to stay in South Sudan.

However, the original cost of the UPDF’s deployment to South Sudan was not disclosed in the budget, which was heavily criticized by lawmakers.  

Defense Minister Crispus Kiyonga refused to disclose details of how much has been spent since December 2013, saying it would jeopardize the mission.

Kiyonga was appearing before MPs to defend his ministry’s 1.4 trillion Shilling budget for the 2015/16 fiscal year. 

UPDF soldiers secure the Juba airport in January 2014

Meanwhile in South Sudan It has emerged that the government in Juba has nearly doubled its military spending since 2010, and now ranks as the region’s biggest spender.

A recent report by the Stockholm International Peace Research Institute (SIPRI) showed a rise in South Sudan’s military spending to $1.08 billion US dollars last year, from $982 million in 2013.

At the same time the black market rate for South Sudanese Pounds (SSP) to US dollars (USD) is 8.7 while the bank rate remains at 3.19.

The lack of dollars is causing many business owners in South Sudan to shut down because they can’t get access to the hard currency they need to maintain operations.

Complicating matters further is the fact that suppliers in neighbouring countries, such as Kenya and Uganda, are refusing to accept SSP as payment for goods and services.

It has also been reported that the government in Juba has begun printing SSP, without any reserves of USD, against which the printed SSP would need to be backed against in order to prevent hyperinflation.

Uganda is South Sudan’s largest trading partner.