South Sudan deal to rake in $124 million

About 100 trucks are earmarked to ferry goods and commodities being exported to South Sudan within the next two weeks, when the country is projected to rake in about $124 million.

Information from the Ministry of Trade indicates that, as at Tuesday last week, first consignment of the fifty fully loaded 30 tonnes trucks containing maize flour, rice, sugar and beans started off for South Sudan.

While confirming the development yesterday, Minister of Trade Sosten Gwengwe, however, said details would emerge when heads of State for the two countries meet.

“There are 13 more trucks that are leaving on Tuesday for South Sudan. This is all happening under the African Continental Free Trade Area arrangement,” Gwengwe said.

Ideal Group is coordinating the exports.

Ideal Group Chief Executive Officer Thandize Loti said in an interview that the contract would see the local private sector supplying 180,000 tonnes of maize flour, 10,000 tonness of rice, 5,000 tonnes of sugar, 5,000 tonnes of beans and 1,000 tonnes of cooking oil.

“This is giving Malawi an income of $124 million. Several companies are participating in the value chain,” Loti said.

He said the firm has partnered farmers to supply maize to millers.

In June this year, Malawi signed a deal worth over $150 million [about K120 billion] with South Sudan to supply maize, maize flour, sugar, rice and ground nuts to that country.

In return, Malawi will be importing petroleum and bitumen from South Sudan.

SOURCE: THE TIMES GROUP