Page 15 - Nile Explorer Issue 007

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government must take the lead moving The government is already pushing
forward. ahead with plans to boost oil production
Moreover, building the capacity of the and sales, by increasing buyers and
Justice system, from the police, the encouraging international investments.
justice department and the corrections The government recently announced an
services is another nightmare in a coun- offer for fourteen oil exploration blocks.
try that is mired in corruption at all The offering is certainly necessary,
levels of state. Yet this is a pre-condition particularly, given that the country’s oil
for building a functional state and output is expected to fall below 100,000
assuring investor confidence. bpd by 2021 if new investments into the
sector don’t materialize.
As a response, UNMISS is reported to
have since stepped up its protective With the oil output forecasted to fall by
presence to build confidence in areas of 2021, the new government has its work
returnees and the UN Police (UNPOL) cut out, with a full in-try. This is
is expanding technical assistance and compounded by a skeptical internation-
has began to co-locate with the National al community and low investor confi-
Police Service to enhance policing capa- dence, which should be the focus of the
bilities. cabinet.

In line with the Peace Agreement, a In February, the then Minister of Petro-
properly functioning state requires an leum Daniel Awow Chuang told Xinhua
end to: Impunity – by increasing News Agency in an interview, that his
support to the police and justice chain; ministry was planning to launch the
Corruption – through financial country’s first oil and gas bidding round
accountability and transparency; in the month of March.
On the flipside, the integration of the Dependency – through shifting to He had further stated that the licensing
armed groups into the army is seen as a support programmes that promote would not just be given, but companies
solution to the need to neutralize the self-reliance; and Exclusion – to ensure would have to compete, thereby under-
tentative balance of both military and that all South Sudanese are part of the scoring the appetite the country has for
political power in the country ahead of a democratic process. investments and the desire to instill
general election postponed to 2021. In addition to being the world’s young- transparency in the sector.
The International Organization for est country, South Sudan is also the one According to World Bank, South Sudan
Migration (IOM) estimate that some most dependant on oil. Oil revenues is the most oil dependant nation in the
800,000 people had returned since the constitute more that 98% of the govern- world, with oil accounting for almost all
Peace Agreement was signed, and this ment budget, according the government its exports and around 60 percent of
number will surge moving forward. data. GDP. Income from oil accounts for 98
While this is a positive thing, it comes The country used to produce 350,000 percent of the country’s budget. Other
with costs of re-settlement and provid- BPD of oil when it was comparatively sectors with great potential include
ing returnees with the necessary stable before the civil war started. Since agriculture and livestock, mining, man-
support to settle back home to produc- the start of the civil war in 2013, the ufacturing and financial services, that
tive livelihoods. conflict adversely affected the security help reshape the country’s budget.

According to the UN, the civil war has and stability of the country, leading to a Insecurity and the post 2014 oil price
resulted in rape, torture and harsh living dramatic decline in oil production. The crash left the economy in tatters, but
conditions, including starvation. The country’s production of oil has since increased oil output could revive the
UN Commission on Human Rights in shrunk to around 166,000 BPD. economy and anchor the Re-vitalized
South Sudan revealed that at least 60% In the aforesaid context, ending the Transitional Government to push
of the country experiences significant conflict and ensuring security and through its programmes.
food insecurity. stability will require huge foreign

In a briefing to the UN Security Coun- investments in the oil sector. If this It is fighting between rebels and govern-
ment troops in the Toma South oil
cil, Mr. Shearer, warned that the lack of happens, the country’s economy will fields, on the border with Sudan that
health and education in rural areas has experience exponential growth. The damaged the oil production facilities.
discouraged returns and must be opposed would be disastrous, imperil It is therefore telling that the resump-
redressed by humanitarian and devel- economic growth and stalk a new round tion of oil activities is part of the peace
opment actors, “including donors”. But of conflict.
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