South Sudan has restarted oil production after a year-long halt due to conflicts in Sudan, aiming to revive its struggling economy. Despite the government’s optimism, experts caution that past oil revenue increases have not benefitted the wider population, often exacerbating corruption and inequality. With the economy heavily reliant on oil, there are calls for diversification and more responsible governance to improve conditions for civilians.
South Sudan, recognized as the world’s youngest nation, has resumed oil production after a prolonged shutdown due to ongoing turmoil in adjacent Sudan. The restart, initiated on January 8, 2025, has sparked both optimism and skepticism, given the nation’s persistent struggles with economic distress, corruption, and institutional inefficiencies. Minister of Petroleum Puot Kang Chol expressed hope, indicating that the resumed production could revitalize the country’s economy.
Emerging from a tumultuous history, South Sudan’s economy significantly relies on oil exports, generating over 90% of national revenue, despite holding around three-quarters of the former Sudan’s oil reserves. The country’s oil infrastructure predominantly depends on pipelines through Sudan, complicating export processes. The return to production follows Sudan lifting a ban on oil exports, essential for South Sudan’s economic recovery amidst protests against enduring corruption.
While the resurgence of oil production in South Sudan offers a glimmer of hope, it also highlights the complexities of governance, systemic corruption, and economic reliance on a single resource. Analysts stress the need for economic diversification and transparency in oil revenue management to genuinely benefit the South Sudanese people and address the pervasive poverty and challenges facing the country today.
Original Source: www.dw.com
