South Sudan Courts Investors Beyond Oil After Sudan Conflict

James Alic Garang, Governor of the Central Bank of South Sudan

August 2, 2024 (JUBA) – South Sudan is actively seeking investment in sectors beyond oil, aiming to diversify its economy and reduce reliance on the energy sector, which was impacted by the recent conflict in neighbouring Sudan.

James Alic Garang, Governor of the Central Bank of South Sudan and chairman of the Monetary Affairs Committee for the East African Community, highlighted the country’s abundant mineral resources, including gold, uranium, diamonds, and iron ore.

“Oil is not the only source of revenue for economic growth,” said Garang, a U.S.-trained economist currently in Nigeria for the African Central Bank Governors and Finance Ministers Caucus meeting.

Mawien Daniel Kuc, a master’s student at the School of Economic and Social Studies, noted that the extractive sector currently accounts for less than 5% of South Sudan’s GDP.

“The governor is on the right path. Our economy has been largely dependent on oil. We need to explore and exploit other sectors for growth and foreign currency earnings,” Kuc said.

Kuc pointed out that South Sudan’s industrial sector is small, with limited manufacturing activity. He said efforts are underway to revive agro-processing industries and address constraints like power shortages, high labour costs, and poor infrastructure.

The country is also focused on boosting local production, streamlining mineral production policies, and promoting eco-tourism, while enhancing revenue collection and transparency.

Sunday Michael Ogwu, a Nigerian journalist, said many associate South Sudan solely with oil.

“What many don’t know is that many other factors will ensure sustainable development for South Sudan,” Ogwu said, after learning about the country’s diverse resources and investor-friendly policies during an interview with Garang.

South Sudan is working to attract foreign direct investment through deeper relations with international financial institutions and by addressing internal conflicts that have hindered diversification efforts.

The country aims to leverage its potential in agriculture, tourism, fishing, and mining to create a more resilient and diversified economy.