The Roadmap to the South Sudan Economics Prosperity

By Koang G. Bidit

November 28, 2011 (SSNA) — The South Sudan is a landlocked country. Thus, the Khartoum government has currently threatened Juba, the seat of South Sudan government to cut off its pipeline, which is transporting crude oil from the South to Port Sudan in the North, unless the government of the South will adhere to the proposed pipeline renting prices to transport its crude oil to Port Sudan on the Red Sea. The present economic level of South Sudan is not thriving. The ensuing components are the main factors, which hampered the economic development growths in the South:

First obstruction, the country had recently gained its independence, four months ago, from the North. Thus, the entirely government departments have recently re-established because the North, and South Sudan had been in war for 55 years, which is the key factor that has complicated the speedy, economic evolutions in the South.

Second obstruction, the war proficiency, is only key skill available to the South Sudan government officials. Almost, the entire commanders who fought in Sudanese civil war for five decades have now occupied or are currently occupying the ministerial, ambassadorial, and other higher posts in the government of South Sudan. However, the extant situations on the ground have proven that transforming a war commander or a military expert into the position of power in the office environment is a challenge.

Natural resources

The South Sudan has abundant natural resources, such as oil, land, and water. However, it is hitherto difficult to manage those resources. Currently, the government of the Republic of South Sudan has not resolved the question of oil operation; meanwhile, the country is a landlocked region with no access to any ports, but is heavily depending on the oil production’s revenue. Paul J. Sullivan and Natalie Nasrallah have mentioned in their reports that. “The Sudan has between 5 billion and 6.7 billion barrels of proven oil reserves, the fifth largest endowment in Africa. Most of these reserves lie in the Muglad and Melut basins in the south, and production hovers around 480,000 barrels per day. Moreover, mechanized farming, which requires large amounts of land, is consuming traditional pastoral corridors and smaller agricultural endeavours in some areas, and its organized crop rotation, or fallow systems, requires constant expansion to maintain output. Almost two-thirds of the Nile basin lies within Sudan’s borders, and groundwater reserves are considerable; and yet, most of the population suffers from a shortage of clean drinking water and reliable water sources for agricultural livelihoods” (Sullivan & Nasrallah, 2011).

During the civil war, most of the battles were fought in the South. With that compact development, the untold destructions had imposed on the region. The central government in Khartoum had fought to control the South Sudan’s oil fields, which brought appalling catastrophes to the people of South Sudan. The Khartoum government had managed to build the entirely oil refinery to the North, while the 75% of Sudanese’s crude oil reserves had produced in the Southern part of the country. The Sudan government has also coped to build thousands of kilometres pipeline from the South Sudan and run upwards to the North. The disproportionate developments of old Sudan against the new South have posed economic uncertainty to the Republic of South Sudan government; literally, Khartoum had never initiated economic foundations for the South. However, the censuring game over the economic imbalance in Sudan has over; it is now up to the government of South Sudan to stand up and thrive economically.

Project scheme

This project will detail the necessary steps to describe economic guidelines for the Government of the Republic of South Sudan. The factors that contributed to these ruinous economic hardships have been associated with the lack of implementing alternative strategic plans. Thus, the government of South Sudan may have adopted the following strategic plans such as building new pipeline and the refinery, agriculture operation, infrastructure, oil reserves policy and the tourism attractions as to recover the newest nation from its plumping economic developments:

First strategic: the new pipeline and refinery

The government of South Sudan may immediately consider building new pipeline and the oil refinery in order to rescue the country from current economic devastation. While, the main oil fields have found on the North eastern part of South Sudan region, the routes to build new pipeline will take alternative, running through the Ethiopian plateaus terrains, directly to Port Doraleh of Djibouti, down to the Indian Ocean.

First beneficial, this plan will save the government of South Sudan millions of dollars from its construction budget. The distance from the South Sudan’s oil fields to Port Doraleh, Djibouti is 2,243 kilometres, comparison, to 3,994 kilometres distance from the South to Port Mombassa, Kenya.

Second, the availability of the land space at Port Doraleh, Djibouti is another beneficial to the government of South Sudan. There are high chances for the government of South to purchase a vast land space with a less price because the land space competition at Port Doraleh is not as much as the competition of buying a land space at Port Mombassa, Kenya.

Third beneficial, this plan will enable the South Sudan government to join the international coalitions who have currently operated at Port Doraleh, selling, importing and exporting crude’s oil products. For that reasons, the government of South Sudan may closely look to these options as to sign a new contract with the government of Djibouti in order to construct a new facility at Port Doraleh, Djibouti.

Alternatively, building new pipeline through Port Mombassa in Kenya is the second option because using Port Mombassa will cost the government of South Sudan huge budget, due to, far distance terrains from the South Sudan’s main oil fields to Port Mombassa, Kenya. Another barrier or limitation to use Port Mombassa is a lack of land space. The East African nations have congested Port Mombassa and over-used the land space. Hence, the competition of buying a land space is lavish. As such, research has depicted, from early paragraphs that the probability of using Port Doraleh, Djibouti is a viable option.

The South Sudan will build local its oil refinery, nearby, to the oil main fields as to abate construction costs. Thereafter, the government will merely export the finished-oil-products to Port terminals for the customers’ sales. However, in the meantime, the government of South Sudan should have temporarily renting the existence North Sudan pipeline while constructing its own. The pipeline renting prices will depend on a negotiation effort between the government of South Sudan and Sudanese government. However, it seems like the South has lost its negotiation effort on renting pipeline prices. So far, the agreement has not yet signed. The Sudan government has acknowledged that South Sudan has no option availability to alternate the Khartoum’s proposed renting prices. If Khartoum has ad-infinitum pressing these excessive pipeline-renting prices against the South, then the Republic of South Sudan government will eventually accept the prices to export its crude’s oil products to Port Red Sea until the South has built its own pipeline to operate independently. These exorbitant prices asked by Khartoum government are signs of revenge against South Sudan’s secession from North. Consequently, the government of South Sudan economic experts should promptly have taken this initiative to host the historic, economic conference in Juba, discussing modalities, strategies, and of course, new ways to turn around the plumping economic. The conference of economic experts should also approve new modalities to implement the construction of South Sudan’s pipelines and refinery without deferral.

Second strategic: agriculture operation

The lack of proper usage of irrigation scheme is the main obstacle to agriculture operation in the South. The land of South Sudan is fertile. The world’s longest river, the River Nile system, has over crossed the mainland of Sudan. The Blue Nile is at the east, and the White Nile is running through the mainland of Southern Sudan. The land of South Sudan has enormous swamps and other water bodies that occupied 80% of the land. The East African nations have named the land of South Sudan ‘breadbasket’ due to, its fertility. However, I am not sure if the region of South Sudan will retain such a wishful name to produce enough ‘bread’, feeding the whole Eastern African Nations.

The government of South Sudan may instantly consider implementing the irrigation scheme to prosper the nation economically. Since, there has plenty of water in the region; the country could not have gone hunger, facing food shortage. The government has to encourage local population to adopt irrigation scheme, and deter farmers from depending on the rainfall seasons for cultivation. The land of South Sudan can feed the world if irrigation scheme policy has implemented.

Third strategic: infrastructure

The government of South Sudan would have immediately engaged to build super highways connecting the ten states. Building super highways are one of the 21th century’s smart plans. The highways constructions in the South will create enormous employments to thousands of South Sudanese, who are currently jobless, including international skilled workers, who have now lived in the South. The connections of ten states will faster shift the economic gear. The deliverance of goods among the ten states will be fastest and reliable.

It is pointless to mention that the South Sudan has lacked the underground water running system while water occupied 80% of South Sudan’s land. The entirety towns including Juba, the seat of South Sudan government have not installed the underground water running system. In the absence of water infrastructure system, one can imagine that the general health situation in South Sudan is relatively poor. The Republic of South Sudan government had quickly required to installing the water infrastructure to serve its population from existing poor sanitations that cause difference infectious diseases to the general population in the South. The existence of underground water systems will also supply South Sudan citizens with clean drinking water. The system will help to remove and drainage waste materials from residency environments into the reserved main-landfills in the South. As follows, the government of South Sudan may develop the capacity to implementing infrastructure on its own as to improve the South Sudan economic.

The South Sudan is a dark country; most places have no electricity. Therefore, the country has required to installing the main sources of energy stations well across the ten states to light-up the nation. With huge oil revenues at hands, it is an inexplicable for citizens of South Sudanese to live under dark and cataclysmic nation during 21st-century. Along these lines, the government of South Sudan should have diligently rescued its nation citizens with a deserved development that literally they have endowed when casting votes on July 9, 2011, separating south from the north. The land of South Sudan is too fertile with enough natural resources. There has no excuse from the government that the developments could have not reached, at least, the main ten cities in the South. President Bill Clinton (2011) said in his Walden University’s commencement speech that, “the tips to a sound-economic strategic plan are simple, first create the budget, and then allocate that budget into right places”. A good economic planner cannot distort an allocated budget for a no economic issue.

Forth strategic: oil reserves policy

The South holds 75% of Sudanese crude’s oil reserves. Then, the world has no longer focuses on Khartoum for oil marketing. The oil game in Sudan had dramatically shifted to the South as of July 9, 2011, when the Republic of South Sudan gained their independence state. The United States Institution of Peace assessments team in Sudan have written that “if southerners vote in favour of secession, foreign investors are likely to re-evaluate their oil agreements with the north and start dealing directly with the south” (Paul &Nasrallah, 2011).

Most recently, the world’s triple super power nations, such as, Russia, China and the United States of America have consulted the government of South Sudan for business relations, especially on the oil sector. One can see that the South Sudan may be a real breadbasket for the world; however, it is unusual equation for the state of Russia, China and the United States of America, synchronously maintaining economic relations with one country.

In some extends, there have no clear steps for the current administration in Juba comprehending looming oil policy between the government of South Sudan and the world’s supper power nations. The Republic of South Sudan government may sometimes run into serious problems with the international community on the oil sector because China, Russia and the United States of America have never had served common goal in world politics, specifically, for the oil business. Taking from above expressions, one can conclude that the economics of South Sudan has greater chances to prosper if right politics has put into place exploring and governing such abundant wealth for the benefits of South Sudan nation.

Fifth strategic: tourism attraction

The South Sudan is the world’s newest state, in which, the richest people around the globe may have desired to see the newest nation. Then, the government of South Sudan would have considered building the highly desirable hotels to attract tourism once they have visited the new state. Building the lovely and ritzy hotels will attract visitors to stay longer in the state while investing enormous cash flow into the South Sudan economics. Once tourist or tourists have experienced a poor living condition, for instance in Juba, due to, unstable accommodations, they might not revisit the country in the future. The worse part of it, their poor stay in Juba will discourage other potential visitors whom may flow suit to visit the South.

Consequently, the state will lose its revenues simply from world travellers. In such away, the Republic of South Sudan Government may have upgraded its business codes of conduct matching the world style standard in order to draw a full financial supports from world travellers. This plan will assist the government of South Sudan a huge financial margins.

Next, the current administration in Juba would have engaged creating the blueprints for the industrial job markets such as, “accounting firms, automotive program companies, business development plans, business strategy & planning firms, business-training firms, computer & installation companies, construction companies, distribution or shipping & receiving companies, engineering firms, manufacturing companies, sales and marketing companies, storage facilities companies, transportation or trucking companies, and the warehouses to store the incoming materials” (global consulting, Inc.),

This has not a request for the government of South Sudan to invent a scientific object that has not existed in the world, but to inherit the services, which have available in order to serve its citizens with the meaningful economics. The implementation of this project will involve rigor workshops and the intensive research. The project may have organized under the auspices of ministry of education and labour office. The office of President, of the Republic of South Sudan will periodically supervise the progressive of project. This would be the right way for the government of South Sudan to spend its last dollar boosting the South Sudan economy.

Second option, the government of South Sudan will provide business loans to the potential companies to establish what may call as general car motor company in the South, or whatever name maybe. The plan will help the South Sudan economics to create tonic prospective jobs to employ thousands of South Sudanese who are sitting jobless in Juba. After July 9, 2011 independence, the Republic of South Sudan government could not have longer pardoned the international community, at this time, for not running the South Sudan government more sufficiently. The international community had been a key proponent to the people of South Sudan during six years of the interim period, and even when the South had achieved its independence. For instance, the international community has dispatched experts and expertise-personnel around the world to South Sudan, coaching, steering the ministerial departments, and abetting them to play pertinent roles in creating functioning governance in the South.

In conclusion, unlike old Sudan, the Republic of South Sudan has emerged as the larger oil producing state among the East African nations, which has currently attracted, and diverted the world’s focus toward the Republic of South Sudan. It is a mandate of the government of South Sudan to choose its oil customers, worldwide, among countries that have assisted the South Sudan government when gained its independence from the North. The choices seemed clear; choosing from oil customers should base on the key donors who have supported the government of South Sudan technically and financially during six years of the interim period and beyond.

The absence of infrastructure in the South has impeded the economics fast growth, and posed the complication on oil exploration and the production capacity. The petroleum product is a sole largest exporting item, and the leading higher domestic income among other natural resources in the South, but the South have not yet decided on when, where and how the nation may build its owned pipeline. Then, building refinery and the new pipeline is a remedy to the South’s economy. The project of pipeline constructions and refinery should take its immediate effect most urgently; otherwise, the country will face uncertainty such as perilous economic hardships that may result into the political upheavals. The proper use of land and water resources, in the South Sudan, has remained insufficient. The irrigation scheme should have adopted and put to use in the South, so that the population would have maintained to cultivate year-round without gap of limitations.

The author is currently living in the United States of America, and pursuing a Doctoral of Philosophy of Law and Public Policy at Walden University. He can be reached at [email protected]

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