Kampala, Uganda – In a surprising development that hits regional trade digitization efforts, the Uganda Revenue Authority (URA) has announced the suspension
of the electronic permit (E-Permit) system for goods transiting to South Sudan.
The authority attributed the decision to technical malfunctions
and negative repercussions on shipping that emerged during the system’s trial phase.
Background and justifications for the decision
The authority stated in an official statement that the suspension takes effect immediately.
It aims to conduct a comprehensive review of the system’s technical
infrastructure and address the gaps that have emerged in recent weeks.
The decision came after repeated complaints from shipping companies
and exporters about significant delays and disruptions in customs procedures.
There is also stockpiling of goods and disruption to supply chains between Kampala and Juba.
Sources close to the authority pointed to a clear deficiency in the integration
of technical platforms between Uganda and South Sudan.
And the absence of effective operational protocols at border crossings.
The implications of returning to paper
The suspension of the digital system is expected to lead to a temporary
return to traditional paper-based procedures.
This could have negative repercussions on intra-regional trade,
including further delays in customs clearance and release of shipments.
And the increased logistical costs for traders.
There is increasing pressure on authorities in both countries
to find solutions that ensure smooth trade.
This increases the likelihood of smuggling activity and exploitation
of loopholes resulting from the absence of digital oversight.
Digital ambition faltered early
In addition, the electronic permitting system was launched
at the beginning of 2025 in cooperation with URA.
Its counterpart in Juba, the South Sudan Public Revenue Authority (SSRA)
This is with the aim of digitizing transit operations, enhancing transparency, and combating tax evasion.
Despite the initial praise, practical experience has shown that
the infrastructure and joint training were not up to the challenge.
Experts emphasize that the future of the project hinges
on the ability of both parties to reassess the experience.
Designing solutions that are appropriate for the reality of cross-border trade.
