By Ustaz Dengdit Akol Dengdit
Dear Readers,
Allow me to shed light on the concept of price gouging, a destructive practice that has crippled our economy for years, yet is often confused with ordinary inflation or an economic crisis.
Foreign traders operating in South Sudan have long taken advantage of our fragile economy. Since the outbreak of civil war and the adoption of a floating exchange rate, they have used price gouging to exploit our people.
Price gouging refers to raising the prices of essential goods and services to excessive levels during crises or shortages. This practice has become widespread in South Sudan, with foreign traders accused of inflating the costs of basic commodities far beyond their real value. Because our nation depends heavily on imports, these traders exploit shortages and currency instability to maximise profits, leaving ordinary citizens to suffer.
Prices of everyday consumables and medicines often rise sharply, sometimes overnight, making it impossible for families to meet basic needs. While global market changes may contribute, the sharp, unjustified increases point clearly to profiteering rather than genuine cost rises. Unless government strengthens regulation and encourages local production, foreign traders will continue to dictate prices and erode livelihoods.
What pains me most is the lack of awareness among both government officials and the general public. Many fail to distinguish between ordinary inflation and price gouging. Inflation does not push prices up by 60% or more in a single night — that is price gouging, and it has been happening for years without meaningful government intervention.
To be clear: price gouging means charging an unfairly high price for essential goods or services, particularly during crises, shortages, or emergencies. It is not a normal adjustment to higher costs, but rather a deliberate exploitation of people’s desperation.
Take an example: In June 2016, a 20 litre jerrycan of fuel cost about 10,000 SSP. By August 2016, after the J1 clashes and fuel shortages, some traders sold it for 30,000 or even 40,000 SSP — even though their import costs had not risen proportionately. Similarly, a 50kg bag of Ugali normally sold at 25,000 SSP could suddenly be priced at 60,000 SSP during border delays or exchange rate shifts. Such steep, unjustified increases represent pure price gouging.
When challenged, traders often excuse themselves by pointing to high taxes in Mombasa and Nimule, numerous checkpoints, or the expensive dollar exchange rate. Unfortunately, many South Sudanese accept these excuses and argue that because we produce little and depend on imports, the government cannot intervene.
What Can the Government Do?
Around the world, governments regulate price gouging through laws, monitoring, and emergency measures. South Sudan should do the same.
-
Price Ceilings (Maximum Price Limits)
Government can set maximum prices for essentials like fuel, sugar, bread, or medicine. For example, if a 50kg bag of sugar should not exceed 30,000 SSP, traders selling it at 60,000 SSP must face penalties. -
Emergency Anti-Gouging Laws
During floods, wars, pandemics, or shortages, governments can restrict price hikes to only a certain percentage above pre-crisis levels. -
Market Monitoring and Inspections
Inspectors should regularly check shops, fuel stations, and pharmacies. Citizens should be able to report gouging via hotlines or complaint centres. -
Fines and Penalties
Offending traders can face heavy fines, loss of licences, or even imprisonment in serious cases. -
Subsidies and Currency Support
By providing foreign exchange at lower rates, government can reduce import costs for essentials like fuel, flour, and medicine, easing pressure on traders and consumers alike. -
Encouraging Competition
Allowing more traders to import freely reduces monopoly power and prevents a few from manipulating markets.
Ustaz Dengdit Akol Dengdit is a Financial Economist and Lecturer in Accounting and Finance at the University of Juba. He can be reached via akoldengdit@gmail.com