Uganda and South Sudan have signed a memorandum of understanding on trade, with both governments committing to establish joint technical committees to oversee its implementation. The agreement was signed on Wednesday in Kampala during the second Uganda-South Sudan Business Forum. Uganda's Minister of State for Industry, David Bahati, and South Sudan's Minister of Trade and Industry, Dr Labanya Margaret Mathya, signed the accord, which covers trade promotion, information exchange and investment facilitation.
The deal addresses long-standing barriers affecting cross-border commerce. Uganda's Ambassador to South Sudan, Brigadier General Ronnie Balya, said the committees would ensure commitments are implemented and would be supported by a roadmap with timelines and measurable outcomes for resolving border challenges. Bahati highlighted concerns raised by Ugandan traders about delays related to South Sudan's electronic permit system, repeated cargo verification, multiple checkpoints and inconsistent clearance procedures along the Kampala-Gulu-Nimule-Juba corridor.
Trade between the countries remains heavily skewed in Uganda's favour. According to Bahati, Uganda exported goods worth 524 million dollars to South Sudan in 2025, while South Sudan exported goods worth 22 million dollars to Uganda. The Uganda Ministry of Finance estimates annual exports to South Sudan at approximately 500 million dollars, though United Nations figures indicate South Sudan exported about 21.5 million dollars to Uganda in 2025. When the forum was launched in 2022, Uganda had announced plans to increase bilateral trade from 400 million dollars to 1 billion dollars.
Officials cautioned that the agreement's value would depend on implementation. Haruna Kasolo Kyeyune, Uganda's Minister of State for Foreign Affairs in charge of Regional Cooperation, said the significance of the memorandum would ultimately depend on how well both governments follow through on their commitments. He urged ministries and agencies in both countries to strengthen coordination and maintain private-sector involvement in efforts to improve trade.