Opinion|Malek Cook-Dwach, PhD Candidate, University of Juba
The recent resumption of oil production in South Sudan, which began on January 8, 2025, marks a significant milestone after a one-year shutdown due to the prolonged conflict in neighboring Sudan.
While the restart has been met with both optimism and skepticism, the country continues to face enormous economic challenges, including rampant corruption and institutional weaknesses (Edimond, 2025).
Effects of Oil Resumption: Oil is the lifeblood of South Sudan’s economy, accounting for more than 90% of the nation’s revenues. The petroleum minister, Puot Kang Chol, expressed hope that the resumption of production would offer relief during the ongoing economic crisis (Chol, 2025).
Beginning with a flat rate of 90,000 barrels per day, down from the pre-shutdown levels of over 150,000 barrels per day, the government plans to gradually increase production as capacity allows (Chol, 2025).
However, as the government celebrates this achievement, analysts caution that the benefits may not reach the broader population. Boboya James Edimond pointed out that past increases in oil revenues have often resulted in widespread corruption and growing social inequalities rather than improving the living standards of ordinary citizens (Edimond, 2025).
Concerns over the transparency and accountability of oil revenue management remain critical, raising doubts about whether these resources can effectively combat poverty and economic instability.
Economic Context: The one-year shutdown severely impacted South Sudan’s economy. The country’s GDP contracted by approximately 5%, while the oil and gas sector shrank by nearly 70% (Edimond, 2025).
The national budget now stands at $1.3 billion, one of the lowest in East Africa, particularly when compared to neighboring countries such as Kenya and Uganda. Despite its oil wealth, South Sudan faces significant fiscal challenges (Edimond, 2025).
Furthermore, many civil servants have not received salaries for over a year, a direct result of poor governance and weak institutions. Meanwhile, inflation continues to rise, while purchasing power among ordinary citizens continues to decline (Oyet, 2025).
Freelance journalist Patrick Oyet highlighted that even when oil production was active, the economic situation remained dire for most individuals (Oyet, 2025).
The geopolitical situation also complicates South Sudan’s recovery. The country remains reliant on Sudanese pipelines to export its crude oil to global markets via Port Sudan. Analysts suggest that maintaining stable relations with various factions within Sudan is crucial for ensuring the effectiveness of these pipelines, especially amid ongoing conflicts (Edimond, 2025).
This dependence raises the risk of exploitation, as oil revenues could be diverted toward bribery or support for armed groups.
While the resumption of oil production provides some hope for South Sudan’s struggling economy, the political instability and crises in neighboring regions pose serious challenges to long-term recovery.
Without effective management, the country risks perpetuating deep-rooted issues such as corruption, poor governance, and economic exploitation. South Sudan must prioritize transparency, accountability, and institutional reform if it is to transform its oil wealth into lasting prosperity for its citizens.
The Author is an MP in the Transitional National Legislative Assembly (TNLA), representing Leer Constituency and member of the Specialized Committee on Energy and Adams.
The views expressed herein are solely his own and do not reflect the position of the institution with which he is affiliated and media publisher. He can be reached at malekcook75@gmail.com or via phone at 0921888848
