South Sudan orders firms to fire expatriates

South Sudan on Tuesday stunned the region by expelling all foreign workers, including thousands of Kenyans.

A government order said all foreign employees of private entities should hand over to Sudanese professionals by October 15. It is reminiscent of a 1972 directive by Ugandan dictator Idi Amin expelling Asians.

The South Sudanese order might deal a blow to Kenyan companies which have invested in that country and rely on expatriate labour for specialised skills.

Kenyan companies with operations in the oil-rich nation include the East Africa Breweries Limited (EABL) which opened a depot in Juba last year.

Kenya Commercial Bank, East Africa’s largest bank by market capitalisation, operates the largest branch network with 21 branches in the unstable country. The bank planned to open two more branches in the current financial year.

Equity Bank has nine branches while Cooperative Bank, which is in a joint venture with the government of South Sudan, and CfC Stanbic Bank, have one branch each in Juba.

South Sudan is relies on oil revenue and its human capital, just like its infrastructure, is still developing.

Aside from the banks, many Kenyan firms in insurance, petroleum and telecommunications industries, have established subsidiaries there.

Aid organisations, NGOs as well as hotels and lodges are also expected to fire foreign staff by mid-October.

The order to kick out expatriates is contained in a September 12 circular from the Ministry of Public Service and Human Resource.

“All the above institutions, corporations and business entities are asked to advertise for the vacant positions by October 15,” read the circular signed by Mr Ngor Kolong Ngor, the country’s Labour minister.

The positions that must be reserved for South Sudanese are: executive directors, personnel managers, secretaries and human resource officer.
Others are public relations, procurement, front office and protocol officers as well as receptionists.

“These posts must be filled by competent South Sudanese nationals,” Mr Ngor said.

INCREASINGLY COMPLEX

Aid operations have become increasingly complex in South Sudan since December 2013 when parts of the country came under the control of opposition Sudan People’s Liberation Movement.

In July, President Salva Kiir issued an order warning humanitarian organisations not to publish independent statements on the food and nutrition situation without the approval of the presidency.

Attempts to get a comment on how the directive will impact on the operations of KCB and Equity were unsuccessful. The Cooperative Bank opted not to comment.

EABL said it would be monitoring progress and take the cue from the Foreign Affairs ministry.

“We shall continue to monitor the situation as it unfolds,” EABL head of communications Joseph Sunday said in an e-mail.

The Foreign ministry also did not comment on how the move could impact on diplomatic relations with Kenya. It said it was yet to receive the circular.

Uganda’s State Minister of Foreign Affairs in charge of regional cooperation Asuman Kiyingi, said although Juba was autonomous and free to do as it pleased, this particular pronouncement was disconcerting.

Uganda hosts  more than 119,000 South Sudanese refugees.