UAP exit is a loss and opportunity for the market, economist argues
Leading South Sudanese economist says while the withdrawal could batter investor confidence in the country, it offers an opportunity to other resilient businesses to take up challenge
By Anak Dut
UAP insurance has announced plans to exit South Sudan. In a press statement dated, July 4, 2025, the regional insurance firm said it made the decision to cease operations in the country due to unsustainable market conditions and the need for significant capital investment beyond their current resources.
Further, the company said that it will continue to serve existing policyholders until their policies expire, honoring claims according to policy terms. Medical and life claims will be accepted up to 90 days after policy expiry or the claim date, whichever comes first, while general insurance claims will be accepted up to 180 days, it added.
“Starting July 3, 2025, UAP will be entering a runoff period in which they will not be taking on any new insurance business or renewing contracts,” the firm noted.
This decision comes as the company navigates both legal and operational difficulties in South Sudan, following a legal tussle with 57 national employees who sued for wrongful dismissal for ‘protesting unequal pay and treatment compared to foreign employees.’
The Ministry of Labour’s directive for UAP to reinstate employees and adjust the salary structure was not followed, leading to legal action by the UAP National Staff Association (UNSA). Despite an arrest order issued to the company’s Managing Director, Japheth Omare Omwero by the High Court in Juba in February 2023 for non-appearance, he was later released.
The case, still ongoing, is set for final submission on July 4, 2025, coinciding with UAP’s decision to wind down operations. This move marks a significant change in South Sudan’s insurance industry, sparking concerns for policyholders and employees. While UAP has promised to meet its obligations during the transitional period, the closure highlights the challenges of doing business in South Sudan’s unpredictable economic and regulatory landscape.
Speaking to The City Review on Friday regarding the company’s planned exit, leading economist, Dr. Abraham Maliet said the economy has been business oriented, where people or companies can leave due to a number of reasons.
“UAP insurance companies might have made enough money that can enable them reinvest elsewhere. Or maybe, they have been out-competed from the market, due to the entry of new dominant businesses and products.”
He suggested that the company may have felt market or financial threats that is why they opted to leave the country, but that they will definitely look for alternatives.
“However, this provides an opportunity for other competitors in the market to review the standards of their practice and the products they sell,” he said.
Maliet, however, said the withdrawal of UAP from South Sudan could hamper investor confidence in the country.
Meanwhile, it will be an opportunity for the new companies to come up and assume the void left, he argued.
“The current investors that are in South Sudan are risk takers. So, they don’t really care about those domestic or formal ways of doing business. Most of the investors in the country are either from war-torn countries or have had experiences in doing business in turbulent environment as this. Some of the resilient risk takers include people from Somalia, Eritrea, Ethiopia, among others, who have had a better share of conflicts and learnt how to cope in such environments,” he said
