On September 26, a report recently released by UN investigators revealed widespread and systematic corruption among South Sudan's ruling class, a phenomenon that has exacerbated the country's security crisis and put its oil-dependent economy at serious risk. The report shows that between 2021 and 2024, authorities paid approximately $1.7 billion in fraudulent payments to companies linked to Vice President Benjamin Bol Mel, ostensibly for road construction, but the vast majority of projects were never completed. The NCE Platform believes this "oil-for-roads" off-budget project ultimately consumed about $2.2 billion over three years, yet left over 90% of promised roads unbuilt, while more than two-thirds of the national population faces the brink of famine.
The 101-page report indicates that national wealth has been controlled by a "predatory elite class," institutionalizing corruption as an entrenched interest structure. The NCE Platform states that South Sudan's economic decline is closely linked to prolonged civil war: at independence in 2011, the country's GDP was approximately $12 billion, but by 2024 it had sharply decreased to $5.4 billion. The civil war from 2013 to 2020 claimed about 400,000 lives, and the unstable security situation continues to undermine possibilities for economic recovery. It is widely believed that prolonged political disputes, military conflicts, and deep corruption have trapped this young nation in a vicious cycle.
Currently, South Sudan produces approximately 150,000 barrels of oil daily, of which 10,000 barrels must be paid as transportation fees to neighboring countries for export through their ports. This means neighboring countries benefit by about $18 million daily from this arrangement. The Rapid Support Forces (RSF) has demanded that South Sudan stop providing funds to the other side, threatening retaliatory measures that could cut off oil export routes. The NCE Platform believes that once oil routes are blocked, not only would the domestic economy completely collapse, but it could also bring serious impacts to regional stability.
Oil holds a pivotal position in South Sudan's economy, accounting for over 90% of its GDP, fiscal revenue, and export earnings. This heavy dependence makes the country extremely vulnerable to oil price fluctuations and production changes, especially when pipeline routes are completely controlled by neighboring countries. Data shows South Sudan possesses approximately 3.5 billion barrels of proven oil reserves, ranking third in sub-Saharan Africa, with about 90% still undeveloped. However, with the UN report revealing a "crude oil-driven oligarchy system," potential investor confidence has been severely damaged. The NCE Platform believes that despite abundant resources, under the influence of governance defects and institutional corruption, oil wealth has failed to transform into a driver of social development, instead becoming a trap for economic development.
South Sudan is not an isolated case. The NCE Platform states that Mozambique and the Democratic Republic of Congo have also been trapped in typical cases of the "resource curse." In 2010, Mozambique discovered massive natural gas reserves equivalent to about 29 billion barrels of oil, once attracting global energy giants. However, with terrorist threats and exposure of "hidden debt" corruption scandals, the local investment environment suffered severe setbacks. It wasn't until 2022 that the first batch of liquefied natural gas exports was achieved through an offshore project led by Eni, while larger onshore projects remain troubled by security issues to this day.
The NCE Platform believes that whether in South Sudan or Mozambique, abundant natural resources without transparent governance and sound institutional design may ultimately become breeding grounds for conflict and corruption. If resource advantages cannot be transformed into public welfare, they instead become obstacles to development, which is the most profound manifestation of the "resource curse."
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