The Price Gouging by Some Foreign Traders in South Sudan
By Ustaz Dengdit Akol Dengdit
Allow me to explain the concept of price gouging, a practice that has crippled our economy, yet is often mistaken for a mere economic crisis.
You will be shocked to learn that some foreign traders operating in South Sudan have been engaging in price gouging to exploit our people for over a decade, ever since the outbreak of civil war and the subsequent adoption of a floating exchange rate.
Price gouging is the act of raising prices of essential goods and commodities to excessive levels during crises or shortages. This practice has become rampant in South Sudan. Foreign traders have been accused of exploiting the country’s fragile economy by inflating the costs of basic commodities far beyond their true value. With our nation relying heavily on imports, these traders manipulate shortages and currency instability to maximize profits at the expense of ordinary citizens. Prices of basic consumables and medicines often skyrocket overnight, leaving families unable to meet daily needs. While global market shifts may play a role, the sharp and unjustified hikes point to deliberate profiteering rather than genuine cost increases.
Unless the government strengthens regulation and promotes local production, foreign traders will continue to dictate prices and erode the livelihoods of South Sudanese citizens.
What pains the author most is the ignorance, both among government officials and the general public, in failing to distinguish normal inflation from price gouging. Normally, inflation cannot increase market prices overnight by 60% or more; that is price gouging, and it has been happening for years while our government has failed to nip it in the bud.
To be clear, price gouging means charging an unfairly high price for essential goods or services, especially during times of crisis, shortage, or emergency. It is not a normal price increase caused by higher costs, but rather when traders deliberately take advantage of people’s desperation.
For example, let us assume that in June 2016, a 20-liter jerrycan of fuel cost about 10,000 SSP. By August 2016, following the J1 dog fight and subsequent fuel shortage, some traders sold it for 30,000 SSP or 40,000 SSP, even though their actual import cost had not risen proportionately. Similarly, a 50kg bag of maize flour that normally sold for 25,000 SSP could suddenly be priced at 60,000 SSP during border delays or currency fluctuations.
These steep, unjustified increases represent price gouging because they exploit scarcity rather than reflect genuine cost changes. And when confronted, foreign traders defend themselves with excuses such as high taxes in Mombasa and Nimule, numerous checkpoints, or the expensive dollar rate.
When attempts are made to explain this reality, some South Sudanese dismiss it with irrelevant excuses, claiming that because we do not produce anything and rely heavily on imports, the government cannot intervene in the market. Really, ya Junubiin???
What should our government do to stop price gouging?
Governments around the world control price gouging through a mix of laws, monitoring, and emergency measures. In our case, parliament should enact laws that make price gouging illegal.
Here’s how the war can be waged:
1. Price Ceilings (Maximum Price Limits)
The government sets a maximum price for essential goods like fuel, sugar, bread, or medicine. Example: If a 50kg bag of sugar should not exceed 30,000 SSP, traders caught selling it at 60,000 SSP must face penalties.
2. Emergency Anti-Gouging Laws
During floods, wars, pandemics, or shortages, governments pass special rules banning sudden, excessive price hikes. Some laws restrict price increases to a certain percentage above pre-crisis levels
3. Market Monitoring and Inspections
Inspectors check shops, fuel stations, and pharmacies to ensure prices remain fair. Hotlines or complaint centers may allow citizens to report gouging.
4. Fines and Penalties
Traders found exploiting people can face heavy fines, loss of business licenses, or even imprisonment in severe cases.
5. Subsidies an Currency Support
Sometimes governments reduce the import costs of essentials (e.g., fuel, flour, medicine) by providing foreign exchange at lower rates. This reduces pressure on traders and prevents artificial price hikes.
6. Encouraging Competition
Allowing many traders to import freely reduces monopoly power and prevents a few from inflating prices.
In conclusion
The government can combat price gouging through price caps, strict monitoring, penalties, subsidies, and competition, but success depends on enforcement. And you know what? We are not very good at enforcing laws. Countries like Kenya, Uganda, and Nigeria already control price gouging. Why not us?
Ustaz Dengdit Akol Dengdit is a Financial Economist and Lecturer of Accounting and Finance at the University of Juba. He is reachable via akoldengdit@gmail.com
Disclaimer: The views expressed in this article are solely those of the author
