War-torn South Sudan is hoping to attract investors mainly in the oil sector and revive its battered economy after joining the African Trade Insurance Agency (ATI).
Joining ATI gives companies and investors willing to venture into the high-risk nation the ability to explore for opportunities, which in return may help resuscitate the country’s economy.
The Pan-African investment and commercial risk insurance provider covers risks ranging from breach of contract to non-payment and government expropriation.
Its products make cross-border investments attractive to lenders, traders and equity investors, and ultimately they help increase foreign direct investments into the continent.
“We look forward to partnering with South Sudan to help the country build a stable and strong economy,” said ATI chief executive George Otieno.
South Sudan becomes the 14th African country to become a member of ATI.
Financial support
The African Development Bank provided the financial support of $7.8 million share capital that made it possible for the country to join the agency.
Last year ATI supported in excess of $2 billion in insured trade and investments across Africa.
The move comes barely a fortnight after warring factions signed a ceasefire to bring an end to three years of hostilities but which seems to be crumbling.
The political instability and prolonged fighting between government forces and rebels have crippled the economy that is entirely dependent on oil revenue.
South Sudan is feeling the pain of insecurity particularly in oilfield zones with investors giving the country a wide berth at a time when it desperately needs resources for exploration activities and building of refineries and pipelines to enable the country benefit fully from its vast crude potential.
The country estimates the current 3.5 billion barrels of recoverable crude reserves represents only 30 per cent of its oil potential, with 70 per cent remaining unexplored. South Sudan also has three trillion cubic metres of recoverable natural gas.
READ: Hope for South Sudan as fund offers President Kiir $105b budget support
Macroeconomic collapse
A report by the World Bank contends that over the past two years, South Sudan has displayed all the signs of macroeconomic collapse with output contracting and inflation and parallel exchange market premium spiralling.
“Six years after independence, South Sudan remains one of the world’s most conflict-affected and fragile countries, unable to emerge from cycles of violence,” states the South Sudan Economic Update 2017.
It adds that during the 2016/17 financial year, the country’s GDP is estimated to have contracted by about 11 per cent due to conflict, oil production disruptions and below-average agriculture production.
The conflict has ignited a humanitarian crisis with donors appealing for $1.7 billion to provide critical and life-saving assistance to six million people.
Newer articles:
- South Sudan's Cease-Fire Broken by Both Sides, Monitors Say - 16/01/2018 09:44
- South Sudan army admits holding ‘prisoners of war’ - 16/01/2018 07:55
- South Sudan Communities Receiving Regular Aid in Previously Inaccessible Areas - 16/01/2018 06:09
- South Sudan joins Africa Trade Insurance - 16/01/2018 00:03
- From Seedling to Shade: Planting Trees in South Sudan’s Displacement Sites - 15/01/2018 16:11
Older news items
- Life in South Sudan: A Deportee’s Story - 14/01/2018 21:57
- China Donates Medical Supplies Worth Over $10Million To South Sudan - 14/01/2018 08:02
- South Sudan youth body condemns ceasefire violations - 13/01/2018 22:52
- UN and partners launch initiative to end child rights violations in South Sudan - 13/01/2018 07:48
- South Sudan immigrant; Newport News local 'ashamed' of Trump's comment - 12/01/2018 23:43
Latest news items (all categories):
- The Collo Kingdom Remains Underdeveloped: Five Hundred Years Later! - 03/02/2025 12:57
- Attack on South Sudan cattle camps kills 35 - 03/02/2025 12:46
- في صفقة مثيرة.. الإمارات تشتري نفط الجنوب في باطن الأرض لمدة 20 عامًا - 03/02/2025 12:42
- South Sudan: Can oil production save the economy? - 30/01/2025 19:27
- 20 oil workers and crew die in South Sudan plane crash - 30/01/2025 19:20
Random articles (all categories):
- Surge in robberies and violence threaten aid to crisis-hit South Sudan - U.N. - 23/11/2015 08:18
- White House: 'Skeptical' S.Sudan Leaders Can Oversee Transition - 22/07/2018 07:45
- His Majesty Sultan Haitham Bin Tarik congratulates President of South Sudan - 08/07/2020 08:32
- Despite signing of peace agreement South Sudan’s economy continues to deteriorate - 19/06/2019 02:00
- Uganda, South Sudan form joint COVID-19 committee - 17/09/2021 09:48
Popular articles:
- Who is the darkest person in the world, according to Guinness World Record? - 25/10/2022 02:34 - Read 68993 times
- No oil in troubled waters - 25/03/2014 15:02 - Read 22366 times
- School exam results in South Sudan show decline - 01/04/2012 17:58 - Read 21568 times
- Top 10 weakest currency exchange rates in Africa in 2023 - 19/07/2023 00:24 - Read 19271 times
- NDSU student from South Sudan receives scholarship - In-Forum - 29/09/2012 01:44 - Read 19214 times