Economy of South Sudan
Currency | South Sudanese pound (£ SSP) |
---|---|
Trade organisations | AU, AfCFTA (signed), EAC, IGAD, WTO (observer) |
Country group | |
Statistics | |
GDP | |
GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
-11.8 (2022)[5] | |
Population below poverty line | |
45.5 medium (2013)[8] | |
Labour force | 4,345,169 (2022)[11] |
External | |
Exports | $1.13 billion (2016 est.)[12] |
Imports | $3.795 billion (2016 est.)[12] |
−$154 million (2017 est.)[12] | |
Public finances | |
62.7% of GDP (2017 est.)[12] | |
−1.3% (of GDP) (FY2017/18 est.)[12] | |
Revenues | 259.6 million (FY2017/18 est.)[12] |
Expenses | 298.6 million (FY2017/18 est.)[12] |
$73 million (31 December 2016 est.)[12] | |
South Sudan became the world's newest country and Africa's 55th nation on 9 July 2011. The South Sudanese Civil War, which started in December 2013, undermined economic development achieved since independence, making humanitarian work difficult to conduct within the country. As such, South Sudan is facing economic stagnation and instability in its first 10 years after independence. Moreover, poverty is widespread throughout the country as a result of inter-communal conflict, displacement, and external fear.[13]
The economy of South Sudan is $3.681 billion by gross domestic product as of 2019, being one of the most oil dependent economies in the world, with 98% of government's annual operating budget and 80% of its gross domestic product (GDP) derived from oil,[14] despite being endowed with adequate natural resources. It has a very fertile agricultural land and vast quantities of livestock. The livestock include over 60 million cattle, sheep and goats. Instability, unsatisfactory governance, and corruption continue to hinder development in South Sudan.
South Sudan is mostly underdeveloped, and one of the least developed countries; most cities in the country have no electricity or running water, and overall infrastructure is lacking, with only 10,000 km (6,200 mi) of paved roads.[15]
Natural resources
South Sudan exports timber to the international market. Some of the states with the best known teak and natural trees for timber are
One of the major natural features of South Sudan is the
Oil
Prior to independence, South Sudan produced 85% of
In recent years, a significant amount of foreign-based oil drilling has begun in South Sudan, raising the land's geopolitical profile. Oil and other mineral resources can be found throughout South Sudan, but the area around
Due to Sudan's presence on the
The other producing blocks in the South are blocks 3 and 7 in eastern
Another major block in the South, formerly called Block B by the North Sudanese government, is claimed by several players.
The wealth-sharing section of the CPA states that all agreements signed prior to the CPA would hold; they would not be subject to review by the National Petroleum Commission (NPC), a commission set up by the CPA and composed of both Khartoum and Southerners and co-chaired by both President
Agriculture
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South Sudan relies on food imports from neighboring countries, such as Uganda, Kenya and Sudan. These come at a high transportation cost which, coupled with inflation, has caused food prices to rise dramatically in South Sudan.[22] The declining agricultural production and the reliance on expensive foreign food supplies have contributed to a severe food shortage in South Sudan. Around 2.7 million South Sudanese will need food aid in 2012 according to the United Nations' food programme.[25]
The government has begun to address the issue of agriculture and food security. According to Elizabeth Manoa Majok, undersecretary in the Ministry of Commerce, Industry and Investment, the government of South Sudan has made food production a top priority.
In June 2011, the vice-president of South Sudan, Riek Machar Teny, announced a plan to mobilize $500 billion of foreign investment in the first five years of independence. Much of this investment would be focused in the agricultural sector, where the government hopes to diversify the economy and provide jobs to the large numbers of unemployed.[22] The FAO has also drawn up a $50 million Interim Assistance Plan (IAP) for the agricultural sector that will build capacity in ministerial and state agricultural extension offices. This includes the establishment of a seed production sector and an urban and peri-urban agriculture component.[24]
Smallholder farming accounts for 80 percent of the country's cereal production. Unfortunately, these farmers face a number of constraints, due to high transport costs, unavailability of agricultural inputs, and underdeveloped agricultural extension services. Instead of investing resources into developing the kind of agricultural extension services that could help smallholder production, however, the government has chosen to focus on large-scale, private sector-led industrial agricultural schemes as a way to boost food production.[22]
Donor countries promote the idea that industrial farming is the key to improved food security in South Sudan. The United States Agency for International Development (USAID), for example, is working with Citibank, the IFC, the Corporate Council on Africa, and others to help the country market its resources and attract private capital in key sectors, including agriculture.[22]
This investment is intended to stimulate rural development and generate employment opportunities, increase food productivity, provide government institutions with new and sustainable sources of revenue, and help to diversify the economy. There is some concern, however, that a small transnational elite will benefit at the expense of the rural poor if the country's arable land is used to grow food for foreign populations, while simultaneously pushing communities onto increasingly marginal lands. This could create the potential for more food insecurity, instability, social unrest and conflict.[23]
Nina Pedersen, manager of
One of the largest firms involved is the Egyptian private equity firm Citadel Capital, which has leased 259,500 acres for farming. This plantation has provided little local employment, being mostly run by Zimbabweans.[27] A Ugandan conglomerate called the Madhvani Group has also entered into a preliminary agreement with the government of South Soudan to revitalize a government-owned sugar plantation and processing facility in Mangala Payam. This plantation would cover 10,000 ha of prime riverfront property along the Nile, about 70 kilometers north of Juba. According to the paramount chief in Mangala, the community has not been involved in any of the investment negotiations.[22]
Concerns about foreign exploitation has led organizations such as OI and NPA to urge a moratorium on new land deals until a better framework is established.[26]
For its part, the South Sudan's Land Commission, a task force headed by Robert Lado in charge of advising the government and drawing up the new policy, is pushing for land administrations at county and sub-county level that are run by community members, including women and tribal elders.[26]
Infrastructure
In 2012,
The nation has some
Currency
In 1992, the
East African Community membership
The presidents of Kenya and Rwanda invited the
On 17 September 2011, the
In December 2012, Tanzania officially agreed to South Sudan's bid to join the EAC, clearing the way for the world's newest state to become the regional bloc's sixth member.[44] In May 2013 The EAC set aside $82,000 for the admission of South Sudan into the bloc even though admission may not happen until 2016. The process, to start after the EAC Council of Ministers meeting in August 2013, was projected to take at least four years. At the 14th Ordinary Summit held in Nairobi in 2012, EAC heads of state approved the verification report that was presented by the Council of Ministers, then directed it to start the negotiation process with South Sudan.[45]
A team was formed to assess South Sudan's bid; however, in April 2014, the nation requested a delay in the admissions process, presumably due to South Sudanese Civil War.[46][47]
South Sudan's Minister of Foreign Affairs, Barnaba Marial Benjamin, claimed publicly in October 2015 that, following evaluations and meetings of a special technical committee in May, June, August, September and October, the committee has recommended that South Sudan be allowed to join the East African Community. Those recommendations, however, had not been officially released to the public. It was reported that South Sudan could be admitted as early as November 2015 when the heads of East African States had their summit meeting.[48]
South Sudan was eventually approved for membership in East African Community in March 2016,[49] and formally acceded with the signature of the treaty in April 2016.[50]
See also
References
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