‘Despite oil wealth, South Sudan reels under poverty’

As South Sudan observes 11th Independence Day on Saturday, Anadolu Agency finds answers to why huge oil reserves are not translating it into wealthier nation - Anadolu Agency ......

(aa.com.tr)

 

JUBA, South Sudan

Despite huge oil reserves, the landlocked Central African country of South Sudan continues to reel under poverty even after gaining independence 11 years ago.

Speaking to Anadolu Agency on the eve of Independence Day of South Sudan, which is being observed on Saturday, Ter Manyang Gatwech, head of the Juba-based Center for Peace and Advocacy, alleged that the oil benefits have transferred to fewer individuals rather than benefit the country or the society.

“Our oil is a curse because the oil has not created wealth for the people of South Sudan. It has benefited a few individuals who want the citizens to continue in extreme poverty,” he said.

According to reports, South Sudan has the third-largest oil reserves in Sub-Saharan Africa with roughly 3.5 billion barrels produced annually. Experts believe that 90% of the gas and oil reserves are still untapped.

The country at present produces 147,000 barrels of oil per day, a drop from 160,000 barrels of oil per day last year.

Gatwech said that when the country gained independence, it was expected that country’s oil wealth will help to build the state and remove poverty.

He said that the oil companies do not even employ the local youth.

On July 9, 2011, South Sudan proclaimed itself independent from Sudan following six years of autonomy and a decades-long struggle for statehood.

Experts said that even the rise in fuel prices globally has not benefited either the people or the government in South Sudan.

According to South Sudan's economic outlook, published by the African Development Bank, poverty has increased in the country from 55.4% in 2020 to 55.9% in 2021 and unemployment remained high at 18%.

Struggling to pay wages

South Sudan’s Finance Minister Agak Achuil was quoted in May this year that the government was struggling to pay wages to civil servants because the country’s oil proceeds have been sold in advance.

“The oil money is going towards the payment of loans and other priorities,” he said.

John Bol, a resident of the capital Juba, said it was expected that the country will develop and people will be free to move and work anywhere in the country after independence.

“People were very happy that they are no longer going to suffer as that was the case under the Khartoum-based regime. But unfortunately, the war started again in 2013 making everything from bad to worst and nobody is telling us where our oil money is going,” he said.

He said that the country is rich but still the majority of the people are living below the poverty line.

Admitting lack of development, Deputy Foreign Minister Deng Dau Deng said it was just a matter of time to focus on progress and to attend to issues like illiteracy and diseases.

“Most African countries have challenges like ours. We are not an isolated country, people have fought after the independence, we must accept that, yes but let us move together,” he said.

Lack of management

However, a senior official from the Finance Ministry, on the condition of anonymity, told Anadolu Agency that the proceeds from the oil trade are being misused in the country.

He said that despite revenues accrued from selling the oil, civil servants are left without wages for months.

“We have enough resources but these resources are not properly used, there is a lack of proper management which is why people look at South Sudan like a poor country,” he said.

On the decline in production, Awou Daniel Chuang, undersecretary in the Petroleum Ministry attributed it to aging machines, flooding, and logistical problems.

He called for the advancement of technology and expansion in the exploration areas to keep production levels steady.

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References

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