South Sudan has restarted oil exports after nearly a year-long suspension caused by conflict in neighboring Sudan, which damaged a key pipeline. The resumption has been met with widespread excitement, as the country heavily relies on oil revenues, which constitute over 90% of its income.
The pipeline shutdown had left many civil servants unpaid for nearly a year, prompting significant economic hardship. The restart of oil exports is expected to generate approximately $400 million annually, enabling the government to pay salaries, cover security expenses, and invest in peace initiatives.
Economic Revival and Hope for Stability
Petroleum Minister Puot Kang Chol announced an initial production target of 90,000 barrels per day, with plans to scale up over time. Before the disruption, South Sudan was producing over 150,000 barrels daily.
The country, despite its oil wealth, has faced significant challenges since gaining independence in 2011, including political instability, ethnic violence, and poverty. Senior Economic Advisor Dr. Abraham Maliet Mamer described the resumption as a “New Year’s gift” for the people, emphasizing its importance for reviving the economy and restoring financial stability.
During the prolonged crisis, South Sudanese communities relied on a culture of communal living and small businesses to survive. Dr. Mamer credited their resilience and optimism for helping the nation endure months without income.
A Vision for Regional Growth
South Sudan aims to use oil revenues to fund peace initiatives and infrastructure development, including building a local refinery to reduce reliance on costly imports of refined products. Exporting finished products to neighboring countries could foster economic growth in the broader Horn of Africa region.
The government has also underscored the importance of peace in the region, as uninterrupted oil exports are essential for South Sudan’s economic stability and development.