NAIROBI — South Sudan’s economic crisis is escalating as the country contemplates a drastic measure to completely halt its oil exports through Sudan, a move likely to exacerbate its already dire financial situation.
The potential shutdown follows the rupture of a crucial oil pipeline and comes as Khartoum struggles with a protracted conflict between its army and the Rapid Support Forces (RSF), which erupted in April 2023.
The pipeline disruption has significantly impacted South Sudan’s forex reserves, hampering both local and international business operations.
The Sudan Tribune reported on July 22 that Juba is weighing the possibility of a total suspension of its oil exports due to escalating financial pressures and internal disagreements.
The South Sudanese government faces a severe cash crunch, with civil servants going unpaid for nearly nine months.
Sources indicate that disputes over oil revenue sharing among the warring factions in Sudan have also contributed to the instability.
Currently, less than 140,000 barrels of oil are being exported through the affected pipeline.
However, Bank of South Sudan Governor James Alic Garang has publicly refuted claims of an impending total shutdown, offering no further specifics on the government’s plans.
The situation remains fluid as South Sudan grapples with these mounting challenges, further straining an already fragile economy.
Email us at: info@alleastafrica.com
