Why is South Sudan struggling today? Discover the economic, political, and social roots of South Sudan’s crisis—and what can be done to fix it.
by business analyst: Gatkuoth samuel Ayoub
By: An Economics Blogger with a Passion for Global Development
When South Sudan gained independence in 2011, the world watched with cautious optimism. As the youngest country on Earth, it had vast potential—especially with its oil reserves and rich agricultural land. Yet today, over a decade later, South Sudan remains one of the poorest and most fragile economies in the world. Why?
From an economic standpoint, the answer lies in a complex web of conflict, dependence, weak institutions, and underinvestment in human capital.
Let’s break it down.
🛢️ 1. Overreliance on Oil
Oil accounts for over 90% of South Sudan’s government revenue and exports. That might sound like a blessing, but it’s actually a trap known in economics as resource dependence or the “resource curse.” When a country relies too heavily on a single commodity, especially one as volatile as oil, it becomes extremely vulnerable to global price fluctuations.
When oil prices drop, the economy grinds to a halt. Moreover, oil wealth—when not managed transparently—often fuels corruption and conflict rather than development.
🔥 2. Prolonged Conflict and Instability
Economies cannot thrive in the absence of peace.
Since independence, South Sudan has been marred by civil wars, ethnic tensions, and political rivalries. These conflicts have destroyed infrastructure, displaced millions, and eroded trust in public institutions. Foreign investment—critical for development—has dried up, and humanitarian aid has often replaced sustainable economic activity.
🏗️ 3. Weak Institutions and Corruption
Good governance is the bedrock of a functioning economy. Unfortunately, South Sudan struggles with weak public institutions, limited rule of law, and rampant corruption.
Public funds, including oil revenue, often go unaccounted for. A lack of transparency in how resources are allocated discourages both domestic and foreign investment. In the long run, institutional weakness erodes the foundation of economic growth.
🌾 4. Neglected Agriculture and Infrastructure
Ironically, while South Sudan is rich in arable land, agriculture is largely underdeveloped. Conflict and poor infrastructure mean that farmers can’t get their products to markets. Roads are limited, electricity is scarce, and transportation is unreliable.
Instead of investing in agriculture, health, and education—sectors that can generate long-term, inclusive growth—resources are diverted toward political survival and military spending.
🧠 5. Low Human Capital
South Sudan’s literacy rate is among the lowest in the world, especially for women. Education and healthcare systems are underfunded and underdeveloped. This creates a workforce that is largely unskilled, which limits industrialization and productivity.
An economy can’t grow if its people aren’t equipped with the skills to drive it forward.
🌍 So, What Can Be Done?
From an economist’s point of view, the solution lies in diversifying the economy, investing in peacebuilding, strengthening institutions, and focusing on human development. Here are a few key steps:
- Invest in agriculture to boost food security and jobs.
- Build infrastructure to connect markets and regions.
- Improve education and healthcare to raise productivity.
- Encourage transparency in how public resources are managed.
- Foster peace and political stability, which are prerequisites for any real economic progress.
✍️ Final Thoughts
South Sudan’s economic crisis isn’t just about oil or poverty—it’s about systems. Systems shaped by history, conflict, governance, and missed opportunities. But with the right leadership, international support, and a long-term vision, South Sudan can rise.
Economics isn’t destiny—but without smart economic decisions, destiny is harder to change.
