After Sudan conflict, South Sudan seeks investors beyond oil

August 2, 2024 (Juba) – South Sudan is actively seeking investments in areas other than oil, aiming to diversify its economy and reduce its reliance on the energy sector, which has been affected by the recent conflict in neighboring Sudan.

James Alick Garang, Governor of the Central Bank of South Sudan and Chairman of the East African Community Committee on Monetary Affairs, stressed that the country is rich in 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 who is in Nigeria to attend a core group of African central bank governors and finance ministers.

Marvion Daniel Cook, a master’s student at the School of Economic and Social Studies, noted that extractive industries currently account for less than 5% of South Sudan’s GDP.

“The governor is on the right track. Our economy is largely dependent on oil. We need to explore and develop other industries to achieve growth and foreign exchange earnings,” Cook said.

Noting that South Sudan has a small industrial sector with limited manufacturing activities, Cook said efforts are underway to revive the agro-processing sector and address constraints such as power shortages, high labour costs and poor infrastructure.

The country is also working to increase local production, simplify mineral production policies, and promote ecotourism while improving revenue and transparency.

Nigerian journalist Michael Ogwu said on Sunday that many people mention South Sudan only in relation to oil.

“What many people don’t know is that there are many other factors that can ensure the sustainable development of South Sudan,” Ogwu said in an interview with Garang, after learning about South Sudan’s diverse resources and investor-friendly policies.

South Sudan is working to attract foreign direct investment by strengthening ties with international financial institutions and resolving internal conflicts that have hampered diversification efforts.

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