Economy Of South Sudan

South Sudan emerged as the world’s newest country and Africa’s 55th nation on 9 July 2011, following decades of conflict and a comprehensive peace agreement that ended the Second Sudanese Civil War. This historic event marked the culmination of a referendum held in January 2011, in which an overwhelming majority of South Sudanese voted for independence from Sudan. The establishment of South Sudan as a sovereign state was met with international recognition and hopes for a new era of peace and development. However, the nascent nation faced numerous challenges from the outset, including the need to build governmental institutions, infrastructure, and a stable economy almost entirely from scratch. The South Sudanese Civil War, which erupted in December 2013, severely undermined the economic progress achieved since independence. The conflict began as a political power struggle between President Salva Kiir and his former deputy Riek Machar but quickly escalated into widespread violence involving multiple ethnic groups and armed factions. This internal strife devastated the country’s fragile economy and complicated humanitarian efforts, as millions of people were displaced internally or forced to flee as refugees to neighboring countries. The war disrupted agricultural production, trade, and oil exports, which are vital to the country’s revenue. The instability also deterred foreign investment and aid, further exacerbating the economic crisis and deepening poverty across the region. During the first decade following independence, South Sudan experienced significant economic stagnation and instability. Although the country possessed considerable natural resources, including substantial oil reserves, the ongoing conflict and governance challenges prevented sustained economic growth. The government’s inability to maintain peace and implement effective economic policies resulted in fluctuating GDP figures, inflation, and a lack of diversification in the economy. Additionally, the destruction of infrastructure and displacement of populations hindered efforts to rebuild and develop key sectors such as agriculture, education, and healthcare. Despite international assistance and oil revenues, the country struggled to achieve meaningful improvements in living standards or economic stability during this period. Widespread poverty in South Sudan is primarily attributable to inter-communal conflict, displacement, and the adverse effects of the war in Sudan on the country’s oil industry. The civil war and localized ethnic clashes disrupted farming and livestock rearing, which are the main livelihoods for most of the population. Repeated cycles of violence forced many communities to abandon their homes and agricultural lands, leading to food insecurity and malnutrition. Furthermore, the war in Sudan prior to independence had already damaged oil infrastructure and limited production capacity, which continued to affect South Sudan’s ability to generate revenue after secession. The combination of these factors entrenched poverty and limited access to basic services, leaving a majority of the population vulnerable and dependent on humanitarian aid. As of 2019, South Sudan’s economy had a gross domestic product (GDP) of approximately $3.681 billion. This figure reflected the country’s heavy reliance on oil revenues and the adverse impact of ongoing conflicts and economic mismanagement. The relatively low GDP highlighted the challenges faced by South Sudan in diversifying its economy and developing other sectors such as agriculture, manufacturing, and services. Despite its potential, economic output remained constrained by infrastructural deficiencies, insecurity, and limited human capital. The GDP per capita remained among the lowest globally, underscoring the widespread poverty and underdevelopment prevalent throughout the country. South Sudan’s economy is highly dependent on oil, with oil revenues accounting for 98% of the government’s annual operating budget and approximately 80% of the country’s GDP. The oil sector, centered primarily in the Upper Nile and Unity states, forms the backbone of government finances and foreign exchange earnings. However, this dependence on a single commodity exposes the economy to significant vulnerabilities, including fluctuations in global oil prices and disruptions caused by conflict or technical challenges. The lack of diversification means that other sectors, such as agriculture and industry, remain underdeveloped and contribute minimally to the overall economy. This overreliance on oil revenue has also fueled political tensions and competition over resource control, further complicating governance and stability. Despite its heavy dependence on oil, South Sudan is endowed with abundant natural resources that offer significant potential for economic development. The country possesses very fertile agricultural land suitable for a wide range of crops, including sorghum, maize, millet, and vegetables. These fertile areas, particularly in the Equatoria region, have the capacity to support food security and generate income for rural communities if properly developed. In addition to arable land, South Sudan has vast quantities of livestock, which constitute a critical component of the rural economy and cultural identity. Livestock farming provides meat, milk, hides, and other products, and serves as a form of wealth and social status among many ethnic groups. The livestock population in South Sudan is estimated to include over 60 million cattle, sheep, and goats, making it one of the largest herds in Africa. Cattle, in particular, hold immense economic and cultural significance, often used in traditional ceremonies, dowries, and as a store of wealth. The extensive livestock resources present opportunities for the development of meat processing, dairy production, and leather industries, which could diversify the economy and create employment. However, the potential of the livestock sector remains largely untapped due to insecurity, lack of veterinary services, poor infrastructure, and limited access to markets. Conflicts over grazing land and water resources have also contributed to tensions and displacement among pastoralist communities. Development in South Sudan has been severely hindered by ongoing instability, unsatisfactory governance, and pervasive corruption. The protracted civil war and political rivalries have undermined state institutions and impeded the implementation of coherent development strategies. Corruption within government agencies and the mismanagement of public funds have eroded public trust and diverted resources away from essential services and infrastructure projects. Weak rule of law and limited accountability mechanisms have further exacerbated governance challenges, making it difficult to attract investment or deliver effective public administration. These factors combined to create an environment where economic growth and social progress remain elusive despite the country’s resource wealth. South Sudan remains predominantly underdeveloped and is classified as one of the least developed countries globally by international standards. The Human Development Index (HDI) and other socio-economic indicators consistently rank South Sudan near the bottom, reflecting widespread poverty, low educational attainment, poor health outcomes, and limited access to basic services. The country’s development challenges are compounded by its youthful population, high fertility rates, and the legacy of conflict, which have strained already limited resources. Efforts by the government and international partners to promote development have been hampered by insecurity and institutional weaknesses, resulting in slow progress toward achieving sustainable development goals. Most cities in South Sudan lack basic infrastructure such as electricity and running water, which severely limits urban development and quality of life. The capital city, Juba, along with other urban centers like Malakal and Wau, face frequent power outages, inadequate water supply, and poor sanitation facilities. These deficiencies affect households, businesses, healthcare institutions, and educational facilities, constraining economic activities and public health. The absence of reliable infrastructure also discourages investment and complicates efforts to improve service delivery. Urban planning and municipal governance remain underdeveloped, further exacerbating the challenges faced by rapidly growing urban populations. Overall infrastructure in South Sudan is severely lacking, with only approximately 10,000 kilometers (6,200 miles) of paved roads throughout the entire country. The road network is insufficient to connect many rural areas to markets, health centers, and schools, especially during the rainy season when unpaved roads become impassable. The limited transportation infrastructure restricts trade and mobility, increasing the cost of goods and limiting access to essential services. In addition to roads, the country suffers from inadequate railways, airports, telecommunications, and energy infrastructure. The lack of infrastructure development is both a cause and consequence of the country’s economic difficulties and political instability, perpetuating a cycle of underdevelopment and marginalization for large segments of the population.

South Sudan has established itself as an exporter of timber to the international market, with several states renowned for their rich forest resources. Western Equatoria and Central Equatoria, along with parts of Eastern Equatoria such as the Magwi area, are particularly well known for their abundant teak and other valuable natural tree species used in timber production. These regions have historically supported a thriving timber industry due to the favorable climatic and ecological conditions that promote the growth of hardwood species. The timber extracted from these areas contributes significantly to the country’s export revenues, providing an important source of foreign exchange and employment for local communities. Within these timber-rich regions, specific sites have been identified for teak plantations and forest reserves that play a crucial role in sustainable forestry management. One notable location for teak plantations is Kegulu, where deliberate efforts have been made to cultivate and manage teak trees to meet both domestic and international demand. In addition to teak plantations, South Sudan is home to some of the oldest planted forest reserves, including Kawale, Lijo, Loka West, and Nuni. These reserves have been established to conserve forest biodiversity, provide a continuous supply of timber, and serve as research and training centers for forestry practices. The existence of these reserves underscores the country’s commitment to balancing economic utilization of timber resources with environmental conservation. The timber resources of Western Equatoria extend beyond teak to include other valuable species such as the mvuba tree, which is found notably in the Zamoi area. The mvuba tree is prized for its durable wood, which is used in construction, furniture making, and other applications requiring strong timber. The diversity of tree species in Western Equatoria enhances the economic potential of the timber sector and supports a variety of industries reliant on wood products. This ecological richness also contributes to the livelihoods of many rural communities engaged in forestry and related activities. The River Nile, one of the most significant natural features of South Sudan, traverses the country and plays a vital role in its geography and economy. Many of the Nile’s tributaries originate within South Sudan’s borders, making the country a crucial watershed for the river system. The presence of the Nile and its tributaries provides essential water resources for agriculture, fishing, transportation, and potential hydropower development. The river’s extensive network supports the livelihoods of millions of South Sudanese and is central to the country’s natural resource base. South Sudan is endowed with a variety of mineral resources that have the potential to diversify its economy beyond agriculture and timber. Among these resources are petroleum, iron ore, copper, chromium ore, zinc, tungsten, mica, silver, and gold. Petroleum remains the most economically significant mineral resource, constituting a major portion of the country’s export earnings. In addition to hydrocarbons, the Kapoeta area in Eastern Equatoria is particularly noted for its deposits of gold, attracting artisanal miners and prospectors. The presence of these minerals offers opportunities for future economic development, provided that exploration and extraction are managed sustainably and with adequate infrastructure. Hydropower is another important natural resource available in South Sudan, given the country’s extensive river systems, including the Nile and its tributaries. The potential for hydropower development lies in harnessing the flow of these rivers to generate electricity, which could address the country’s energy needs and support industrial growth. Despite this potential, hydropower infrastructure remains underdeveloped, and investment in this sector is critical for improving energy access and promoting sustainable development. Agriculture forms the backbone of South Sudan’s economy, reflecting a pattern common to many developing countries where the majority of the population depends on farming for subsistence and income. The agricultural sector employs a significant proportion of the workforce and contributes substantially to the country’s gross domestic product. Traditional farming practices coexist with emerging commercial agriculture, and efforts to improve productivity and diversify crops are ongoing. A wide range of agricultural products are cultivated across South Sudan, reflecting the country’s varied agroecological zones. Key crops include cotton, groundnuts (peanuts), sorghum, millet, wheat, gum arabic, sugarcane, cassava (also known as tapioca), mangos, papaya, maize, simsim (sesame), bananas, sweet potatoes, and sesame. These crops serve multiple purposes, including food security, cash income, and raw materials for local industries. For example, cotton and gum arabic are important cash crops with export potential, while staple foods such as sorghum, millet, and cassava form the dietary foundation for many communities. The diversity of crops also helps mitigate risks associated with climate variability and market fluctuations. In recent years, South Sudan has taken steps to enhance its energy infrastructure, particularly through renewable energy projects. A notable initiative is the solar photovoltaic project near Juba, which covers an area of approximately 250,000 square meters. This project was expected to become operational by late 2020 and aims to significantly increase the country’s solar power capacity. By harnessing abundant sunlight, the project seeks to provide a reliable and sustainable source of electricity, addressing the challenges of energy access faced by many South Sudanese. The solar photovoltaic project near Juba comprises several key components designed to optimize energy generation and storage. It includes a 20 megawatt-peak (MWP) photovoltaic park, which represents a substantial capacity for solar power generation in the context of South Sudan’s energy sector. Complementing the photovoltaic park is a 35 megawatt-hour battery storage system, which enhances the reliability and stability of the power supply by storing excess energy generated during peak sunlight hours for use during periods of low solar radiation or high demand. Additionally, the project features an in-house training center aimed at building local capacity in solar technology installation, maintenance, and management. This comprehensive approach not only contributes to expanding renewable energy infrastructure but also fosters human capital development in the energy sector.

Prior to South Sudan’s independence in 2011, the region was the dominant oil-producing area within Sudan, accounting for approximately 85% of the country’s total oil output. This substantial contribution underscored the strategic importance of South Sudan’s oil fields to the overall Sudanese economy. The Comprehensive Peace Agreement (CPA), signed in 2005 to end the Second Sudanese Civil War, included provisions for the equitable sharing of oil revenues between North and South Sudan. Under the CPA, oil revenues were to be split equally between the two regions for the duration of the agreement period, reflecting a compromise intended to balance the interests of both parties during the interim autonomous period. South Sudan’s dependence on oil infrastructure located in the north, particularly pipelines, refineries, and port facilities situated in the Red Sea state of North Sudan, further complicated the management of oil revenues. The CPA stipulated that the Khartoum government would receive a 50% share of all oil revenues as compensation for the use of these facilities. This arrangement highlighted the logistical challenges faced by South Sudan, which lacked direct access to the sea and the necessary infrastructure to independently export its oil. Consequently, the Khartoum government’s share of oil revenues was both a reflection of the infrastructural realities and a political concession embedded within the peace agreement. Oil revenues have constituted an overwhelming majority of the government of South Sudan’s budget, accounting for more than 98% according to figures reported by the Ministry of Finance and Economic Planning of South Sudan. This heavy reliance on oil income has made the country’s economy particularly vulnerable to fluctuations in global oil prices and disruptions in production or export routes. Since the signing of the CPA, oil revenues accruing to the South Sudanese government have amounted to more than $8 billion, underscoring the critical role of petroleum exports in financing government operations and development projects during the transitional period leading up to and following independence. In recent years, foreign-based oil drilling activities have increased significantly within South Sudan, enhancing the geopolitical importance of the region. The influx of international oil companies has attracted global attention, with various foreign governments and corporations seeking to secure access to the country’s substantial hydrocarbon resources. This expansion of oil exploration and production has also intensified competition and complex negotiations involving local authorities, foreign investors, and neighboring states, reflecting the broader geopolitical dynamics of the Horn of Africa and East-Central African region. Oil and other mineral resources are distributed throughout South Sudan, with the area surrounding Bentiu being especially rich in oil reserves. Bentiu, located in Unity State, has emerged as a focal point for oil extraction activities due to its substantial proven reserves and established production infrastructure. In addition to Bentiu, potential oil reserves have been identified in other states such as Jonglei, Warrap, and Lakes, indicating a wider geographic spread of hydrocarbon resources within the country. These discoveries have fueled hopes for expanded production capacity and economic diversification, although infrastructural and security challenges have often impeded full exploitation of these resources. During the autonomy period from 2005 to 2011, Khartoum divided Sudan into various oil blocks, with approximately 85% of the oil production originating from the southern region. This division into blocks was a strategic measure to organize exploration and production activities, assigning rights to various consortia and companies. Among these, Blocks 1, 2, and 4 were controlled by the Greater Nile Petroleum Operating Company (GNPOC), which became the largest overseas oil consortium operating in South Sudan. GNPOC’s dominance in these key blocks underscored the centrality of these fields to the country’s oil output. The ownership structure of GNPOC reflected a diverse international partnership. The China National Petroleum Corporation (CNPC) held a 40% stake, making it the largest shareholder. Petronas of Malaysia owned 30%, while the Oil and Natural Gas Corporation (ONGC) of India possessed 25%. The remaining 5% was held by Sudapet, the central Sudan government’s national oil company. This consortium embodied a blend of Asian state-owned enterprises and the Sudanese government, illustrating the multinational nature of oil investment in South Sudan and the geopolitical interests involved. The involvement of U.S. oil companies in South Sudan’s oil sector has been severely restricted due to the United States’ designation of Sudan as a state sponsor of terrorism. This designation, coupled with Khartoum’s insistence on receiving a share of profits from any international oil deals conducted by South Sudan, effectively barred U.S. companies from operating in the region. As a result, American oil firms have virtually no presence in South Sudan’s oil industry, limiting the country’s access to U.S. capital, technology, and markets. This exclusion has shaped the composition of foreign investment and influenced the geopolitical alignments surrounding South Sudan’s oil sector. Other producing blocks in South Sudan include Blocks 3 and 7, located in the eastern part of Upper Nile state. These blocks are controlled by Petrodar, a consortium with a distinct ownership structure. Petrodar’s shares are divided among several entities: CNPC holds 41%, Petronas owns 40%, Sudapet has an 8% stake, Sinopec Corporation possesses 6%, and Al Thani holds 5%. This consortium reflects a similar multinational partnership to GNPOC, with significant Chinese and Malaysian involvement alongside the Sudanese national oil company and other investors. The presence of Sinopec and Al Thani further diversifies the range of stakeholders engaged in South Sudan’s oil production. Another significant oil block in South Sudan, formerly known as Block B under the North Sudanese government, covers an extensive area of approximately 90,000 square kilometers. This block was awarded to Total, the French multinational oil company, during the 1980s. However, Total has conducted only limited work on Block B, citing “force majeure” as the reason for inactivity. The invocation of force majeure reflects the complex security and political challenges that have hindered exploration and development in this large concession area. The situation surrounding Block B illustrates the difficulties faced by international companies operating in conflict-affected and politically unstable regions. Before the signing of the Naivasha peace agreement, various factions of the Sudan People’s Liberation Movement (SPLM) distributed parts of Block B or even the entire block to other parties within South Sudan. These pre-Naivasha deals represented attempts by different SPLM factions to assert control over valuable oil concessions during a period of internal political contestation. However, several of these arrangements were subsequently rejected after the SPLM/A leader Dr. John Garang de Mabior lost power, reflecting the fluid and contested nature of oil rights and political authority in the lead-up to South Sudan’s independence. The CPA’s wealth-sharing provisions stipulated that all oil agreements signed prior to the CPA would remain valid and would not be subject to review by the National Petroleum Commission (NPC). The NPC was established by the CPA as a joint body composed of representatives from both Khartoum and South Sudan, co-chaired by President Omar al-Bashir of Sudan and President Salva Kiir of South Sudan. This commission was tasked with overseeing the management of petroleum resources and ensuring equitable revenue sharing. However, the CPA did not specify which parties were authorized to sign pre-CPA oil agreements, leading to some ambiguity and disputes over the legitimacy of certain contracts and concessions. Reports indicated that the People’s Republic of China offered South Sudan a line of credit to support the country while it pursued the construction of an alternative pipeline to the Kenyan coast and negotiated an export agreement with Kenya. This financial assistance was aimed at reducing South Sudan’s dependence on Sudanese oil infrastructure by facilitating the development of new export routes. Despite this offer, continued reliance on Sudanese oil infrastructure remained the more likely scenario for South Sudan’s oil exports in the near term, due to the high costs and logistical challenges associated with building new pipelines and port facilities. If South Sudan successfully managed to export oil through Kenyan ports, the United States could emerge as a potential trade partner and importer of South Sudanese oil. Such a development would represent a significant shift in the geopolitical and economic landscape, potentially opening South Sudan’s oil sector to American investment and markets. In anticipation of this possibility, the South Sudanese government intended to lobby the United States to ease restrictions on American companies doing business with Sudan, aiming to increase U.S. involvement in the oil sector. This strategy reflected South Sudan’s broader efforts to diversify its economic partnerships and reduce its dependence on Sudanese infrastructure and influence.

South Sudan has one of the highest proportions of women engaged in agriculture, forestry, and fishing worldwide, ranking second globally in this regard. This statistic underscores the critical role women play in the country’s agricultural sector, where they constitute a substantial part of the labor force responsible for food production and natural resource management. Women’s involvement spans a wide range of activities, including crop cultivation, livestock rearing, and fishery operations, often under challenging conditions with limited access to resources and support services. Their participation is integral to rural livelihoods and food security, reflecting deeply rooted social and economic structures that depend heavily on female labor in subsistence and small-scale farming. The country is endowed with vast tracts of fertile agricultural land and supports one of the largest pastoralist populations in the world. These endowments present significant opportunities for agricultural development, given the availability of natural resources conducive to both crop farming and livestock production. The diverse agro-ecological zones across South Sudan offer potential for cultivating a variety of crops and sustaining large herds of cattle, sheep, and goats, which are central to the livelihoods of many communities. The pastoralist way of life, characterized by seasonal migration and livestock management, remains a dominant feature of the rural economy, contributing not only to food security but also to cultural identity and social cohesion. Despite these natural advantages, South Sudan’s agricultural production experienced a marked decline following the onset of oil exports in 1999. The discovery and commercialization of oil resources shifted national economic focus and investment away from agriculture. According to the World Bank, the average annual growth rate of agricultural production between 2000 and 2008 was a modest 3.6%, a significant slowdown compared to the 10.8% growth rate recorded during the previous decade. This deceleration reflected reduced government and donor attention to agricultural development, compounded by ongoing conflict and infrastructural challenges that impeded farming activities and market access. A comprehensive satellite land cover survey conducted by the United Nations Food and Agriculture Organization (FAO) around the time of South Sudan’s independence revealed that only 4.5% of the country’s available land was under cultivation. This low percentage highlighted the underutilization of the country’s vast arable land, indicating considerable untapped potential for expanding agricultural production. Factors contributing to this limited cultivation included insecurity, lack of infrastructure, inadequate agricultural inputs, and limited access to markets and extension services. The survey’s findings underscored the need for strategic interventions to increase land use efficiency and improve agricultural productivity. South Sudan’s reliance on food imports from neighboring countries such as Uganda, Kenya, and Sudan remains substantial. The country depends heavily on these imports to meet domestic food demand, as local production has been insufficient to ensure food security. However, the high transportation costs associated with importing food, combined with inflationary pressures, have led to dramatic increases in food prices within South Sudan. These economic constraints have exacerbated the vulnerability of many households, particularly in urban and peri-urban areas, where market dependence is greater and purchasing power is limited. The decline in domestic agricultural output and the dependence on costly imported food have contributed to severe food shortages across South Sudan. In 2012, the United Nations’ food programme estimated that approximately 2.7 million South Sudanese required food aid, reflecting widespread food insecurity and malnutrition. This humanitarian crisis was driven by a combination of factors, including conflict, displacement, poor harvests, and economic instability, which collectively undermined the ability of many communities to access sufficient and nutritious food. The scale of the food shortage highlighted the urgent need for comprehensive strategies to revitalize agricultural production and improve food distribution systems. Recognizing the critical importance of agriculture and food security, the South Sudanese government has placed these issues at the forefront of its development agenda. Elizabeth Manoa Majok, who served as undersecretary in the Ministry of Commerce, Industry and Investment, emphasized that food production was a top government priority. This commitment reflected an understanding of agriculture’s central role in economic growth, poverty reduction, and social stability. Government policies aimed to enhance agricultural output, improve food availability, and reduce dependency on imports through targeted investments and institutional reforms. The Ministry of Agriculture set an ambitious target to increase food production to two million metric tons annually by 2013. To achieve this goal, the government sought to attract agricultural investors from diverse international sources, including Gulf Arab states, Israel, China, the Netherlands, and other African countries. The focus was on boosting the production of key commodities such as sugar, rice, cereals, oilseeds, livestock, and cotton. These efforts aimed to modernize the agricultural sector, introduce new technologies, and develop value chains that could generate employment and increase export potential. In June 2011, shortly after South Sudan’s independence, Vice-President Riek Machar Teny announced a plan to mobilize $500 billion in foreign investment over the first five years of nationhood. A significant portion of this investment was intended for the agricultural sector, reflecting its potential to diversify the economy beyond oil and create jobs for the large unemployed population. The plan underscored the government’s strategic vision to leverage agriculture as a catalyst for broad-based economic development and social transformation, while addressing structural challenges such as underemployment and rural poverty. To support these ambitions, the FAO developed a $50 million Interim Assistance Plan (IAP) aimed at strengthening South Sudan’s agricultural sector. This plan focused on building capacity within ministerial and state agricultural extension offices to improve service delivery to farmers. It also sought to establish a seed production sector to enhance the availability of quality planting materials and promote urban and peri-urban agriculture as a means of increasing food production close to population centers. The IAP represented a coordinated effort to address critical gaps in institutional capacity and input supply that had hindered agricultural growth. Smallholder farmers remain the backbone of South Sudan’s cereal production, accounting for approximately 80% of total output. These farmers typically operate on small plots using traditional methods and face numerous challenges that limit their productivity. High transport costs impede access to markets and inputs, while the lack of affordable and quality agricultural inputs such as fertilizers and improved seeds further constrains yields. Additionally, underdeveloped extension services mean that many farmers have limited access to technical advice, modern farming techniques, and information on pest and disease management, perpetuating low productivity and vulnerability to shocks. Despite these challenges faced by smallholders, the government has prioritized large-scale, private sector-led industrial agricultural schemes as the primary strategy to increase food production. This approach emphasizes attracting foreign and domestic investors to establish commercial plantations and agro-industrial enterprises capable of generating economies of scale, improving infrastructure, and introducing mechanized farming. The government’s preference for industrial agriculture reflects a belief that such schemes can rapidly increase output, create employment opportunities, and stimulate rural development more effectively than smallholder-focused interventions. Donor countries and international development agencies have generally supported the promotion of industrial farming as a key pathway to improving food security in South Sudan. For example, the United States Agency for International Development (USAID) has partnered with financial institutions such as Citibank, the International Finance Corporation (IFC), and the Corporate Council on Africa to assist South Sudan in marketing its agricultural resources and attracting private capital. These collaborations aim to facilitate investment flows, provide technical assistance, and develop value chains that can enhance productivity and market access. The involvement of such actors reflects a broader international consensus on the potential benefits of private sector-led agricultural development. The intended outcomes of these investments include stimulating rural development by improving infrastructure and services, generating employment opportunities for a predominantly young and unemployed population, increasing food productivity to reduce reliance on imports, providing sustainable government revenue through taxes and exports, and diversifying the economy away from its heavy dependence on oil revenues. By fostering a more dynamic and diversified agricultural sector, the government and its partners hope to create a more resilient economy capable of withstanding external shocks and promoting inclusive growth. However, concerns have been raised regarding the distribution of benefits from large-scale agricultural investments. Critics argue that such projects may disproportionately benefit a small transnational elite, including foreign investors and local elites, while marginalizing rural poor communities. There is apprehension that these investments could lead to the displacement of smallholder farmers and pastoralists onto less fertile lands, thereby exacerbating food insecurity, social unrest, and conflict. The potential loss of access to traditional lands and resources threatens the livelihoods and cultural identities of vulnerable populations, raising important questions about equity and sustainability in agricultural development. Nina Pedersen, manager of Norwegian People’s Aid (NPA)’s Civil Society Development Project, expressed concern that in the rush to attract foreign investment, negotiators may not have fully understood the value of the land being sold. This lack of comprehensive understanding and consultation risks undermining local rights and environmental sustainability. Pedersen’s observations highlight the need for greater transparency, community involvement, and careful assessment in land deal negotiations to ensure that investments align with the interests of local populations and contribute to long-term development goals. Prior to South Sudan’s independence, from 2007 onwards, private interests sought or secured approximately 5.15 million hectares of land, representing over 8% of South Sudan’s total land area, for purposes including agriculture, biofuels, forestry, carbon credits, and ecotourism, according to NPA. This large-scale acquisition of land by foreign and domestic investors raised alarms about land tenure security and the potential for widespread displacement. The scale of these land deals underscored the urgency of establishing clear legal frameworks and governance mechanisms to regulate land transactions and protect the rights of indigenous and local communities. One notable investor, the Egyptian private equity firm Citadel Capital, leased 259,500 acres for farming operations. This plantation predominantly employed Zimbabwean workers and provided minimal employment opportunities for local South Sudanese communities. The limited local engagement in employment and decision-making on such large-scale farms has been a source of criticism, reflecting broader concerns about the social impacts of foreign-led agricultural investments and the need to ensure that local populations benefit meaningfully from such projects. The Ugandan Madhvani Group entered into a preliminary agreement with the South Sudanese government to revitalize a government-owned sugar plantation and processing facility located in Mangala Payam. This project covers 10,000 hectares of prime Nile riverfront land approximately 70 kilometers north of Juba. Local communities, including the paramount chief, reported that they had no involvement in the investment negotiations, highlighting issues of exclusion and lack of consultation in land deals. Such experiences have fueled tensions and mistrust between investors, government authorities, and local populations, emphasizing the importance of inclusive and participatory processes in agricultural development. In response to concerns over foreign exploitation and the social consequences of large-scale land acquisitions, organizations such as Oxfam International (OI) and Norwegian People’s Aid (NPA) have called for a moratorium on new land deals until a comprehensive regulatory framework is established. These calls advocate for the development of policies and laws that safeguard land rights, promote equitable benefit-sharing, and ensure environmental sustainability. The moratorium aims to provide time for the government and stakeholders to design and implement effective land governance systems that balance investment promotion with the protection of vulnerable communities. South Sudan’s Land Commission, led by Robert Lado, has been actively advocating for the decentralization of land administration to county and sub-county levels. This approach encourages land governance to be managed by community members, including women and tribal elders, in order to foster more inclusive and equitable decision-making processes. By involving local actors who have traditional knowledge and vested interests in land management, the commission seeks to enhance transparency, reduce conflicts, and ensure that land policies reflect the needs and rights of diverse stakeholders. This community-based land administration model represents a critical step toward addressing historical grievances and promoting sustainable land use in South Sudan.

In 2012, the World Bank approved a significant four-year investment loan totaling US$38 million to South Sudan’s Ministry of Roads and Bridges. This financial support was specifically allocated to the construction and rehabilitation of rural and inter-urban roads and highways, reflecting a strategic effort to enhance the country’s transportation infrastructure. Given South Sudan’s vast and often inaccessible terrain, the development of reliable road networks was critical for connecting remote areas with urban centers, facilitating trade, and improving access to essential services. The investment aimed to address the chronic underdevelopment of transport routes that had hindered economic growth and social integration since the country’s independence in 2011. By focusing on both rural and inter-urban corridors, the project sought to create a more cohesive and functional road system that could support the movement of goods and people across the fledgling nation. Despite these infrastructural initiatives, access to clean water remained a profound challenge for a substantial portion of South Sudan’s population. The scarcity of safe drinking water underscored ongoing public health concerns and infrastructural deficits that affected millions, particularly in rural and conflict-affected areas. Waterborne diseases and poor sanitation conditions were prevalent, exacerbating the vulnerability of communities and impeding efforts toward sustainable development. The lack of adequate water infrastructure not only posed immediate health risks but also limited agricultural productivity and economic opportunities, perpetuating cycles of poverty and underdevelopment. Addressing water access issues required coordinated interventions involving infrastructure expansion, maintenance, and community engagement to ensure sustainable water supply and sanitation services. Telecommunications infrastructure in South Sudan remained limited, with services provided primarily by a few operators, including MTN Group, which had formerly operated under the name Investcom. While mobile telephony had gradually expanded, the country lacked the necessary infrastructure to support high-speed Internet connectivity, restricting digital communication and access to information. The nascent telecommunications sector faced challenges such as inadequate network coverage, high operational costs, and limited technical capacity, which collectively constrained the growth of digital services. The absence of robust Internet infrastructure hindered South Sudan’s integration into the global digital economy and limited opportunities for innovation, education, and economic diversification. A notable advancement in South Sudan’s digital infrastructure occurred in September 2022, when the governments of South Sudan and Djibouti signed an agreement to install a fibre optic cable connecting Djibouti to South Sudan’s capital, Juba. This ambitious project involved routing the cable through Ethiopia, thereby establishing a critical link between South Sudan and the international telecommunications network via Djibouti’s undersea cable connections. The initiative represented a strategic milestone in enhancing South Sudan’s digital connectivity, promising to improve Internet speeds, reliability, and accessibility across the country. By leveraging regional partnerships, the project aimed to overcome the limitations imposed by South Sudan’s landlocked geography and underdeveloped infrastructure, facilitating greater participation in the digital economy and expanding access to information and communication technologies. Earlier efforts to expand the telecommunications network were evident in March 2015, when the South Sudanese minister for telecommunications and postal services announced government plans to deploy 1,600 kilometers of fiber-optic cable nationwide within a two-year timeframe. This ambitious rollout sought to establish a comprehensive domestic fiber-optic network capable of supporting higher bandwidth communications and enhancing connectivity between urban centers and remote areas. The deployment of fiber-optic infrastructure was intended to lay the foundation for improved telecommunications services, including Internet access, mobile communications, and data transmission. This initiative reflected the government’s recognition of the critical role that modern telecommunications infrastructure plays in economic development, governance, and social inclusion. Complementing domestic infrastructure development, the South Sudanese government also pursued strategies to connect its fiber-optic network to international undersea cables by utilizing existing infrastructure in neighboring countries such as Uganda and Tanzania. This approach aimed to facilitate improved regional and global Internet connectivity by linking South Sudan’s network to established submarine cable systems that provide high-capacity, low-latency international bandwidth. By integrating with these regional networks, South Sudan sought to overcome the challenges posed by its landlocked status and limited direct access to global telecommunications infrastructure. This strategy not only promised to enhance Internet quality and affordability but also positioned South Sudan to benefit from regional cooperation and economic integration in the digital domain. The combined efforts to expand domestic fiber-optic networks and connect to international cables underscored the government’s commitment to transforming the country’s telecommunications landscape and fostering broader economic development through improved infrastructure.

In 1992, the Sudanese Pound replaced the dinar as the official currency of Sudan, marking a significant shift in the country’s monetary system. This change was part of a broader effort to stabilize the economy and unify the currency system within Sudan. The Sudanese Pound became the sole legal tender throughout the country, including the southern regions, which were then part of Sudan. This currency was intended to facilitate trade, government transactions, and economic integration across the diverse regions of Sudan. Before South Sudan held its independence referendum in January 2011, plans were underway to introduce a new currency specifically for the soon-to-be independent state. South Sudan was poised to become the first region to adopt this new currency, which was informally nicknamed “the Sudani.” This name reflected the desire to establish a distinct national identity through monetary sovereignty, differentiating the nascent country from the rest of Sudan. The introduction of the Sudani was seen as a symbolic and practical step toward economic independence, signaling the transition from shared currency use with Sudan to a fully autonomous financial system. David Deng Athorbie, who served as the inaugural Finance Minister of South Sudan, played a pivotal role in the creation of the South Sudanese pound. As the head of the Ministry of Finance, Athorbie was responsible for overseeing the monetary policy and financial infrastructure necessary for the new state. He publicly announced the government’s plans to introduce the South Sudanese pound as the official currency of the country. This announcement was a critical milestone in the establishment of South Sudan’s economic framework, reflecting the government’s commitment to building a stable and independent financial system. Athorbie’s leadership was instrumental in coordinating the logistical and administrative preparations required for the currency’s launch. The South Sudanese pound was scheduled to be introduced and come into effect one week after South Sudan officially declared its independence on July 9, 2011. This timing was strategically chosen to ensure a smooth transition from the Sudanese Pound to the new national currency, minimizing economic disruption. The government planned to phase out the use of the Sudanese Pound gradually, replacing it with the South Sudanese pound in all commercial and governmental transactions. This transition was essential for asserting monetary sovereignty and enabling the new country to control its own fiscal policies, including inflation management, currency issuance, and monetary supply. The introduction of the South Sudanese pound represented a foundational step in the economic development of the world’s newest nation.

Upon South Sudan’s declaration of independence in July 2011, the presidents of Kenya and Rwanda extended an invitation to the Autonomous Government of Southern Sudan to apply for membership in the East African Community (EAC). This gesture underscored the regional bloc’s interest in integrating the newly independent nation into its economic and political frameworks. By mid-July 2011, South Sudan had reportedly submitted its application to join the EAC, marking the beginning of a process that sought to align the young country’s economic and infrastructural development with that of its East African neighbors. By early October 2011, South Sudan was officially anticipated to become a future member of the EAC. Analysts observed that the government in Juba was actively pursuing efforts to integrate critical infrastructure, including rail links and oil pipelines, with those of Kenya and Uganda. This strategic realignment was interpreted as a deliberate pivot away from South Sudan’s historical dependence on Sudan, particularly in light of the complex political and economic relations that persisted between the two countries following independence. The integration of infrastructure was not only a practical step toward regional connectivity but also a symbolic move to embed South Sudan more firmly within the East African economic sphere. International media outlets recognized South Sudan as the most probable candidate for short-term expansion of the EAC. Reuters identified the country as the likeliest new member to join the regional bloc in the near future, reflecting widespread expectations of its imminent accession. Supporting this perspective, the Tanzanian daily newspaper The Citizen reported statements from Abdirahin Haithar Abdi, the Speaker of the East African Legislative Assembly, who affirmed that South Sudan was “free to join the EAC.” Analysts at the time anticipated that full membership could be achieved swiftly, given the political will demonstrated by existing member states and South Sudan’s expressed interest in regional integration. Despite this optimism, concerns were raised within South Sudan regarding the country’s readiness for EAC membership. On 17 September 2011, the Daily Nation quoted a South Sudanese Member of Parliament who expressed apprehensions that South Sudan’s economy was not sufficiently developed to compete effectively with those of existing EAC members. The MP warned that premature accession could result in South Sudan becoming a “dumping ground” for exports from Kenya, Tanzania, and Uganda, potentially undermining local industries and economic sovereignty. This perspective suggested that South Sudan might need to delay its membership to build a more robust economic foundation capable of withstanding regional competition. Contradicting these concerns, President Salva Kiir publicly announced in October 2011 that South Sudan had officially embarked on the EAC membership application process. This declaration reaffirmed the government’s commitment to joining the regional bloc despite internal economic challenges. President Kiir’s announcement indicated a strategic prioritization of regional integration as a means to foster economic growth, stability, and international cooperation, signaling the administration’s confidence in South Sudan’s capacity to meet the membership criteria over time. However, the East African Community initially deferred South Sudan’s application in December 2012. This postponement was influenced by political tensions that arose from incidents involving Ugandan boda-boda (motorcycle taxi) operators in South Sudan, which strained bilateral relations and raised concerns about cross-border security and regulatory issues. These tensions complicated the integration process and contributed to delays in advancing South Sudan’s membership, as the EAC sought to ensure that all member states maintained stable and cooperative relations before admitting a new member. A significant breakthrough occurred in December 2012 when Tanzania officially endorsed South Sudan’s bid to join the EAC. Tanzania’s support removed a critical obstacle in the accession process, as consensus among existing member states was necessary for South Sudan’s admission. This endorsement was viewed as a positive signal of regional solidarity and a commitment to expanding the EAC’s membership to include the newly independent nation. In May 2013, the East African Community allocated $82,000 to support South Sudan’s admission process. This funding was intended to facilitate the various assessments, negotiations, and administrative tasks required to evaluate South Sudan’s readiness for membership. Despite this financial commitment, the actual admission of South Sudan was not expected until 2016, with the process projected to take at least four years. This timeline was based on the anticipated duration of procedural steps following the EAC Council of Ministers meeting scheduled for August 2013, reflecting the complexity and thoroughness of the accession process. At the 14th Ordinary Summit of the East African Community, held in Nairobi in 2012, the heads of state approved the verification report on South Sudan’s application. They also directed the commencement of negotiation processes with South Sudan, marking a formal advancement in the accession procedure. The verification report assessed South Sudan’s compliance with the EAC’s criteria for membership, including political stability, economic integration, and adherence to the bloc’s principles and protocols. The directive to begin negotiations signified the EAC’s intention to engage South Sudan in detailed discussions aimed at facilitating a smooth integration. Following this directive, a team was established to conduct a comprehensive assessment of South Sudan’s bid for membership. However, in April 2014, South Sudan requested a delay in the admissions process. This request was likely influenced by the outbreak of the South Sudanese Civil War, which began in December 2013 and severely destabilized the country. The conflict raised concerns about South Sudan’s political stability and capacity to meet the obligations of EAC membership, prompting a temporary pause in the accession process to allow the country to address its internal challenges. Despite the ongoing conflict, South Sudan’s Minister of Foreign Affairs, Barnaba Marial Benjamin, publicly stated in October 2015 that after multiple evaluations and meetings of a special technical committee held between May and October 2015, the committee had recommended that South Sudan be allowed to join the East African Community. Although these recommendations had not yet been officially released at the time, the minister’s statement indicated progress toward resolving outstanding issues and moving closer to full membership. The special technical committee’s evaluations likely focused on South Sudan’s political, economic, and institutional readiness to integrate into the regional bloc. Reports emerged suggesting that South Sudan could be admitted as early as November 2015 during the summit meeting of East African heads of state. This anticipation reflected growing confidence among member states that South Sudan had made sufficient progress to warrant inclusion in the EAC. The timing of the potential admission underscored the importance of regional cooperation and the strategic benefits of expanding the community to encompass South Sudan, despite the country’s recent internal conflicts. Ultimately, South Sudan was approved for membership in the East African Community in March 2016. The formal accession was completed with the signing of the treaty in April 2016, officially making South Sudan the sixth member of the regional bloc. This milestone marked the culmination of a multi-year process characterized by political negotiations, infrastructural integration efforts, and responses to internal challenges within South Sudan. Membership in the EAC provided South Sudan with opportunities for enhanced regional trade, economic development, and political collaboration within East Africa.