South Sudan Going Broke Due To War

(Last Updated On: August 18, 2014)

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The South Sudanese government is really trying not to run out of money due to fighting with rebels loyal to former Vice President Riek Machar. This has stopped oil production which accounts for 98 percent of the government’s finance resources. Currently production has dropped from 30,000 barrels per day to 15,000. Big oil production wells in northern Upper Nile and Malakal have shut down.

The government has tried to sell oil before it is pumped out by giving promises to oil companies but this is not sustainable in the long term. They need revenues to pay civil servants’ salaries else they will stop working. The war has also affected various huge projects such a Lamu Port South Sudan Ethiopia Transport corridor and also the standard gauge railway. Even road construction projects have been halted.