By Kitab Unango Juba, September 30, 2024 : At the recent concluded 79th UN Summit, South Sudan's Minister of Foreign Affairs and International Cooperation delivered a compelling address to the international community, urging the lifting of sanctions that continue to impede the nation's path toward economic development. Ramandan Mohamed Goc’s speech placed particular emphasis on the untapped wealth of critical resources in the country and how sanctions have prevented foreign investments, st
By Kitab Unango
Juba, September 30, 2024 : At the recent concluded 79th UN Summit, South Sudan's Minister of Foreign Affairs and International Cooperation delivered a compelling address to the international community, urging the lifting of sanctions that continue to impede the nation's path toward economic development.
Ramandan Mohamed Goc’s speech placed particular emphasis on the untapped wealth of critical resources in the country and how sanctions have prevented foreign investments, stalling the economic recovery South Sudan urgently needs.
The minister's message was one of progress, hope, and a call for the world to recognize the immense opportunities that South Sudan has to offer.
As the world's youngest country, South Sudan has faced numerous challenges in its pursuit of peace, stability, and economic growth.
Emerging from decades of conflict, the country is rich in natural resources, particularly oil, gold, diamond, uranium, zinc, among others and fertile land suitable for large-scale agriculture. However, the recovery process has been slow, and international sanctions have exacerbated the difficulty of attracting foreign investment needed to revitalize the nation.
The Minister of Foreign Affairs made it clear that South Sudan has made significant strides towards peace, stability, and reform, citing that the country has experienced relative peace for the past six years.
He highlighted the potential for South Sudan to become a regional powerhouse if given the opportunity to fully develop its resources without the constraints of international sanctions.
Central to the minister’s speech was the ongoing imposition of international sanctions, including individually targeted sanctions and an arms embargo by the United Nations Security Council . These punitive measures, initially put in place to prevent the escalation of conflict , are now seen as hindering South Sudan's ability to fully realize its economic potential.
"These sanctions have created a negative impact, restraining South Sudan’s full potential by preventing the government from maintaining effective deterrence against negative non-state actors that foment violence and insecurity," the minister stated.
This inability to address security challenges adequately has had the knock-on effect of making investors wary of engaging in the country’s burgeoning sectors, including oil, mining, and agriculture.
The arms embargo, in particular, has prevented the government from strengthening its security forces to counter non-state actors and insurgencies that destabilize key regions. Without robust security, investors have been reluctant to enter the South Sudanese market, perceiving the country as high-risk despite the relative peace the minister alluded to.
Another critical issue raised by the minister was the widespread misperception among international investors that South Sudan remains under broad, crippling sanctions, deterring them from pursuing business opportunities.
Although the sanctions primarily target specific individuals and entities linked to the conflict, the perception persists that South Sudan's economy as a whole is off-limits.
The minister lamented this misunderstanding, pointing out that foreign businesses remain hesitant to invest, even in sectors that are not directly impacted by the sanctions.
"Potential investors in various sectors believe that the country is under broad sanctions and, as a result, refrain from investing in the country," he explained.
This perception has particularly affected the oil industry which forms the backbone of South Sudan's economy.
Despite being one of the largest oil producers in sub-Saharan Africa, the country has struggled to attract new investments to enhance production capacity.
Furthermore, South Sudan boasts immense untapped mineral wealth, including gold, diamonds, and iron ore, all of which remain underexplored due to investor fears about sanctions and security.
The Minister of Foreign Affairs reiterated South Sudan’s long-standing appeal for the removal of sanctions. He reminded the UN that the African Union (AU) and the Intergovernmental Authority on Development (IGAD) had both called for lifting the sanctions, believing they no longer reflect the reality on the ground.
"These punitive measures," Goc argued, "are not reflective of the progress we have made so far."
According to the minister, the lifting of sanctions is key to unlocking the potential for sustainable peace, security, and economic prosperity, emphasizing that peace and stability cannot be sustained without economic growth, and economic growth, in turn, cannot be achieved without foreign investment.
The international community, he urged, should support South Sudan in this critical period by lifting the embargo and allowing the country to rebuild its economy. This would not only benefit South Sudan but would also contribute to peace and stability in the East African region as a whole.
South Sudan’s resources offer a remarkable opportunity for investors willing to explore the untapped potential. As the third-largest oil producer in sub-Saharan Africa, the country holds vast reserves that are yet to be fully developed.
However, the potential extends beyond oil. South Sudan is rich in minerals, including gold, diamonds, and iron ore, resources that remain underutilized due to years of conflict and underinvestment.
In addition to natural resources, the country’s fertile land presents significant opportunities for agriculture, both for domestic food security and for export markets. South Sudan has the potential to become a breadbasket for the region, yet investments in infrastructure, technology, and capital are needed to make this vision a reality.
The minister's message was clear that the world must take a fresh look at South Sudan saying "with the right investments, South Sudan has the potential to be a regional economic powerhouse."
He called on international investors to seize the moment and engage with the country as it embarks on its path towards long-term stability and prosperity.