South Sudan has huge potential beyond oil

Many people associate South Sudan’s fate with its oil resources. They are partly right, as the country has huge oil potential, with the latest statistics indicating 3.5 billion barrels of oil, making it the only contributor to the economy in the past.

However, many do not know that there are many other factors that will ensure the sustainable development of South Sudan. For example, the country has other natural resources besides oil. South Sudan has good investor-friendly policies, including capital mobility. The basis for this growth drive is the Revitalised Peace Agreement, which has held up relatively well since 2018. As a result, the country is preparing for general elections in December.

While Sudan gained independence in 1956, South Sudan experienced a brutal conflict from 1955 until 1972, when a peace agreement was signed in Addis Ababa, Ethiopia. Again, a second civil war resumed in 1983 and lasted until 2005. Despite this, South Sudan gained autonomous status in 2005 after the signing of the Comprehensive Peace Agreement in Kenya. Unfortunately, the country experienced internal conflict in December 2013, and a political settlement was reached in 2018 through the Renewed Agreement on the Resolution of the Conflict in South Sudan.

Despite this turbulent history, South Sudan is building institutions of governance and accountability, while consolidating peace and strengthening bilateral and multilateral relations. Like other countries in the region, South Sudan is now deepening its relations with international financial institutions, including the International Monetary Fund, the World Bank, and the African Development Bank.

Rich natural resources

Overall, oil has been the backbone of the economy in recent years until it was interrupted by the ongoing conflict in Sudan, between the Sudan Armed Forces and the Rapid Support Forces. Needless to say, the biggest obstacle to diversifying the economy so far has been the series of conflicts and the exclusive focus on oil exploration and production.

In response to the resulting economic shocks, the government has now begun exploring other untapped sectors of the economy. Especially since the country has great potential, including agriculture, tourism, fishing, timber and mining, among others.

The above mentioned areas have remained largely untapped for one reason or the other. The country is now focusing on increasing local production; improving mineral production policies; developing gold mining policies, promoting eco-tourism and increasing revenue collection, while increasing transparency and governance reforms. Development partners have also shown greater interest and need to see improvements in these areas, which has implications for efficient resource allocation and prudent policies.

Taking mining as an example, studies have shown that South Sudan has enormous wealth that can fuel its progress even in the absence of oil money. For example, the country has vast deposits of valuable minerals, including gold, iron ore, copper, zinc, lead, manganese, tin, silver, nickel, and cobalt, among others, which are scattered throughout the country.

In addition, an aerial survey in June that found the country is experiencing the largest mammal migration in the world points to South Sudan’s rich natural resources. The survey, conducted in Boma and Badingilo national parks and the Jonglei region, known as the “Great Nile Migration Landscape,” found that about six million antelope cross it each year. This finding dwarfs the two million wildebeest that pass through Tanzania’s Serengeti National Park to Kenya’s Maasai Mara, considered one of the seven wonders of the world. The area boasts huge tourism potential.

Investor-friendly policies in South Sudan

To attract investment in these sectors, the country has supported attractive investment laws and liberal policies regarding capital and labor mobility or account liberalization. In practice, investors enter and exit the market freely. Investors also have every incentive to repatriate their profits. The country encourages investors to invest in key sectors of the economy, especially agriculture, where we have a comparative advantage. Secondly, we welcome everyone to come and experience our investor-friendly political environment. Finally, we are proud to announce that South Sudan is open for business and everyone is welcome.

Thanks to liberal policies, investors will be more than willing to invest their money in South Sudan. The country is open to business, especially in the areas of agriculture, tourism, mining and the service sector.

Governor of the Bank of South Sudan and Chairman of the East African Community Monetary Committee