Page 18 - NILE EXPLORER

Kapoeta, where gold digging is a way
of life. However, the country reaps little
benefit from the mining, since most of
the gold is quickly smuggled out of the
country through the black market.
The government needs to seriously
address the issue of economic
diversification of the economy, moving
forward, especially investment in
agriculture and food security. This
should be a top priority.
The Ministry of Agriculture in South
Sudan has announced its goal of boosting
food production in South Sudan to two
million metric tons per year through
agricultural investors from Gulf Arab
states, Israel China the Netherlands
President Salva Kiir and fellow African countries in order to
increase production of basic food items
GDP in FY2019/20 and to 7.4 percent in including bribes; the lack of a critical such as sugar, rice, cereals and oilseeds,
FY2020/21. The current account deficit mass of farmer and rural producer livestock as well as cotton.
is expected to reach 9.6 percent of GDP associations as a means of entering the
The major risk to the outlook is the market place with the aim of minimizing Moreover, donor countries have been
sustainability of peace and security in the cost of inputs, accessing loan finance promoting the idea that industrial
the country. The formation of a unity at affordable rates and influencing farm farming is the key to improved food
government on 22 February 2020, delayed gate prices; and uncertainties pertaining
twice amidst political deadlock, gives the to property rights and access to land.
country’s leaders a chance to build upon Two and a half decades ago, the country
a ceasefire between the warring factions was a net exporter of agricultural
that has largely held since September product to regional markets; due to war-
2018. While these developments are en- related destruction, poor infrastructure
outraging, significant challenges remain and lack of investment in the agriculture
and the new government will have to sector, South Sudan is now a net importer
work in concert to unify the national of food. It currently imports as much
army, resolve disputes over control of as 50% of its needs, including 40% of
key cities and make peace with holdout its cereals from neighboring countries,
rebel groups. A relapse to conflict would particularly Uganda and Kenya. These
reverse the modest gains made in the come at a high transportation cost
economy and would exacerbate the which, coupled with inflation, have
macroeconomic and the humanitarian caused food prices to rise dramatically.
situation. According to the World Bank, the annual
According to available statistics, about growth rate of the agriculture since 2000
80% of the population lives in rural areas, has averaged only 3.6%, and declining, a
with agriculture, forestry and fisheries mere shadow of the 10.8% growth rate of
providing the primary livelihood for a the previous decade.
majority of the households. Much of the The declining agricultural production
rural sector activity is currently focused and reliance on expensive foreign food Map showing oil & gas blocks in South
on low-input low-output subsistence supplies have contributed to a severe Sudan& Sudan
agriculture instead of production for food shortage in South Sudan.
markets. Although South Sudan has several security in South Sudan. The United
Among the significant reasons for this mineral deposits, these mineral States Agency for International
are: the need for improved agricultural remains largely unexploited due to the Development (USAID), for example,
inputs and techniques such as seeds and ongoing civil war and lack of proper since 2013, has been working with
fertilizers, storage facilities and advisory infrastructure. Many foreign companies Citibank the IFC, the Corporate
services, and irrigation development;) have also been scared away by the Council in Africa, and others to help the
the difficulties faced by farmers in violence. country market its resources and attract
accessing markets due to the poor Gold mining is the main source of private capital in key sectors, including
road network, lack of other transport income for people living in the eastern agriculture. This was however stymied
modes and nuisance taxes and charges, part of South Sudan, especially in by civil war, and little came of it.

18 | The Nile Explorer 008