The economic benefits of the newly established 28 states in South Sudan
6 min readDr. Ater Amogpai, PhD. Assistant Professor, Department of Electrical Engineering, University of Juba
November 30, 2015 (SSB) —- After the President of the Republic Salva Kiir Mayardid, announced the redraw of South Sudan into 28 states, there were mixed opinions. However, the most asking question is, where to get the fund and resources to support the newly established states?
This is what I am attempting to answer in term of economic benefits herein. The study is based on the 28 newly established states. Review of available natural resources, industry and economic benefits as well as electricity supply service in South Sudan are discussed.
Natural Resources
South Sudan is rich of natural resources such as oil and mining, fertile land, water, forestry, fishery, and livestock. All of these resources are not yet used, except the oil in Ruweng State, Eastern Upper Nile State and Northern Lich State where, it is operational.
The oil exploration maps show unconfirmed reserve of oil from Gogrial State to Twic State and Western Lakes State, and from Eastern Lakes State to Southern Lich State through up to Western Upper Nile State and Latjur State. But there is a confirmed oil reserve discovered in Jonglei State, Western Bieh State, Eastern Bieh State and Abyei area.
The reserve oil in Jonglei State, Western Bieh State and Eastern Bieh State is ready for production when peace and security are restored. However, Abyei stills a dispute area between two countries, South Sudan and Sudan. Currently, oil revenue makes up 98% of the country’s national budget.
There are available mining resources such as Gold in Kapeota, Copper in Hofrat el Nahas, Yambio, Kapoeta, Wau and Rumbek. Ironstone plateau is available from Aweil State to Aweil East State and from Wau State to Lol State and Bodudwe State. Ironstone is also available through Maridi State to Gogriel State and Twic State and from Tonj State to Gok State to Western Lakes State to Eastern Lakes State.
Different types of crops, vegetables and fruits are available throughout all states while, Rice crop is available in Aweil states. Oil seeds, oil palm and roots crops are available in most of the Baher el Ghazal States, Upper Nile States and Equatoria States. Tea, coffee and tobacco are available in Greater Equatoria States. Teak and Mahogany trees are available in Baher El Ghazal and Equatoria States.
Acacia (gum) are available from the Eastern Upper Nile State to Western Upper Nile State and Latjur State, and from Gogrial State to Twic State and Tonj State, then from Aweil State to Aweil East State. Bee keeping for honey production is available from Bodudwe State to Maridi State and Eastern Upper Nile State, while cotton crop is available from Nzara, to Mangala and from Manyo to Renk.
The livestock is available from Eastern Upper Nile State to Western Upper Nile State and Latjur State, and from Greater Bahr el Ghazal States to Imatong State and Nyamonong State to Terekekka State and Juba State. Bodudwe State, Maridi State, Maban in Eastern Nile State are fame of pigs’ livestock.
Fish is available along the rivers, lakes and around Sudd areas. Eastern Upper Nile State, Western Upper Nile State and Latjur State and from Eastern Lakes State to Jonglei State and Yei River State to Juba State are fame of fish availability.
Industry and economic benefits
This paragraph focuses on the industry and economic benefits of the available natural resource. There is a high potential of establishment of various industries based on available natural resources. The food production, from drinking water and other soft drinks to alcoholic drinks, fruit and vegetable industries can be established in the all states. Dairy and meat production are the main industries opportunities in Eastern Upper Nile State, Western Upper Nile State and Latjur State, Bahr el Ghazal States, Imatong State and Nyamonong State.
Fish industry can also be established in Malakal, Bor, Yirol and Terekeka. Mining based industry can be built in Kapoeta, Raja, Wau, Yambio or in Rumbek. The suitable areas for cooking oil, soap and flour milling industries are Eastern Upper Nile State, Western Upper Nile State and Latjur State, Bodudwe State and Maridi State. In the operational oilfields areas, the petrochemical industries for olefins (including ethylene and propylene) and aromatics (including benzene, toluene and xylene isomers) can also be established.
The Kenaf industry is suggested in Tonj for packaging materials production, paper production from Papyrus in Sudd area and Jonglei State, the sugarcane industries in Melut and Mangal. The cotton and textile industry can be established in Mangala, Manyo, Renk and Nzara.
Horns, hooves, skins, and leather production, animal feeds mills and veterinary pharmaceutical industries can be established in the biggest towns of South Sudan. Fabrication of doors and windows frames, gates shelves and production of metal water tanks can be produced in the all states. Tourism industry is also another area of interest, for instance, in Nimule, Sudd area and other places throughout the country.
Electricity supply service
Modernization starts with proper access to efficient energy services. There is a huge energy resources in South Sudan for electricity generation. For instance, hydropower and solar energy resources can be used to generate electricity. Crude oil from oil producing areas is another viable source for electricity generation. The hydropower sites are available from Imatong State to Nyamonong State and Amadi State, and from Juba State to Wau State and Eastern Lakes State to Western Lakes State, and from Maridi State to Bodudwe State and Yei River State.
The current electric power is supplied by diesel based generation which characterized with poor infrastructure, lack of spare parts, maintenance and lack of technical persons. Fula dam near Numlei town, is the biggest project to generate electricity with capacity of more than 500 MW. There is a site near to Juba City with capacity of about 130 MW for electricity generation and supply. The feasibility studies of these projects and others are done, but lack fund.
Conclusions
The natural resources such oil and gas, water, agriculture, forestry, fisheries, energy (renewables), Gold, Copper and Ironstone are proved to be available in South Sudan. The industry opportunity and economic benefits have the high potential to occur as soon as possible since the peace and security are restored. The creation of jobs and many other economic activities such as trading will start to emerge.
The generation of income will develop self-independent amongst the people of South Sudan. The number of people applying for government based jobs will be decreasing, because private sectors are growing. Therefore, the investment opportunities will start to focus on the States with the investment and development maps.
The proposed established industries create economic opportunities first, for the citizens of their locations and indeed to the entire people of South Sudan. The willingness of the people of each State to utilize the resources is the biggest support to themselves and to their States. The country is developed by its hard working and committed citizens. South Sudan is blessed with natural resources and let us not proved the say that “natural resources is a curse”.
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