South Sudan Cites Neighboring Sudan’s Conflict and Red Sea
South Sudan’s government attributed the country’s economic crisis partly to external factors, marked by unpaid government workers and soaring living costs. Information Minister Michael Makuei Lueth pointed to the impact of the fighting in neighboring Sudan and the Red Sea instability, where Yemen’s Houthi rebels have targeted international shipping. Lueth highlighted that South Sudan’s oil exports, a primary revenue source, have been affected. He mentioned oil wells being waterlogged due to heavy floods and the disruption of the pipeline passing through Sudan to Port Sudan in the Red Sea, where ongoing conflicts threaten shipping.
The economic challenges come despite signing a peace deal in 2018 that aimed to end South Sudan‘s internal conflict. Lueth emphasized that low oil production, physical difficulties in the oil sector, and external disruptions collectively contributed to the economic downturn. Neighboring Sudan has been grappling with internal conflicts since mid-April, impacting South Sudan’s ability to transport oil through Sudanese pipelines to global markets.
South Sudan, having gained independence from Sudan in 2011 after a prolonged civil war, faced its internal conflict from 2013 to 2018. The power-sharing agreement between President Salva Kiir and Vice President Riek Machar in 2018 marked a tentative resolution, leading to the formation of a coalition government. South Sudan, a landlocked country, produces approximately 150,000 barrels of fuel daily, relying on Sudanese pipelines for global oil exports. Sudan earns $23 per barrel as transit fees for oil exports from South Sudan. The complex interplay of internal and external factors underscores the challenges faced by South Sudan in achieving economic stability and sustaining peace amid regional conflicts and global disruptions.
