Investors urge South Sudan to avoid over reliance on oil
Mar 15, 2006 (NAIROBI) — A two-day international investment conference for southern Sudan ended in Nairobi on Wednesday with foreign investors calling on the Sudanese government to avoid over dependence on oil sector.
The foreign firms, many of which seek a share of Sudan’s multi- million dollar oil industry urged the authorities in the war torn region instead to diversify to other sectors like agriculture to expand investment areas.
“What we are urging our brothers in the southern Sudan is to avoid over reliance on oil sector. The Sudanese government should try to diversify to other sectors if they hope to encourage more investors in other areas in the country,” they said.
Sudan’s southern government is seeking billions of dollars from donors for reconstruction of deprived of infrastructure after many years of civil war.
Addressing the closing session, South Sudan’s Information Minister Dr. Samson Kwaje urged more foreign firms to invest in the vast region, saying regulatory frameworks would be put in place to address the investor concerns.
“You are encouraged to invest in the southern Sudan because your security will be guaranteed. The authorities in the southern Sudan are working round the clock to address some of the concerns which are impending investment flows,” Kwaje told the conference.
“No incidents of insecurity in oil fields have been witnessed since the signing of the final peace agreement. These areas used to be targeted by the Sudan People’s Liberation Movement (SPLM) before the signing of the peace deal but now there is no fighting. This is a sign that all parties are committed to CPA and the region is safe,” he said.
The minister said the semi-autonomous government was rapidly transforming itself from a rebel movement to a government capable of restoring unity and confidence in the people of Southern Sudan.
His Energy counterpart, Albino Akol Akol urged investors not be over cautious when they invest in the war torn nation which emerged from the 21-year old civil war pitting southern rebels against the Khartoum government.
Kent Degerfelt, Head of the European Commission Delegation in Sudan said that southern Sudan is in need of much attention from both the international community and investors to meet the demands of the people of southern Sudan.
Degerfelt said since the signing of the comprehensive peace agreement, some achievement has been made but more needs to be done so that the people of southern Sudan can realize the benefits of peace.
The conference drew investors, donors and government representatives from across the world that turned up in large numbers to sample the business opportunities available in the Sudan’s expanding natural gas and oil industry and proposed ways and means of taping them.
International donors have pledged an estimated 4.5 million dollars in aid for the vast region over the next three years, but are threatening to withhold development funds pending the resolution of the conflict in Darfur.
Southern Sudan, ravaged by many years of civil war and neglected by the central government in Khartoum is looking towards the reconstruction of institutions and delivery of essential services.
A United Nations diplomat in Nairobi, who sought anonymity, said that it is clear that for the process in Sudan to succeed, a real partnership between Sudan and the international community will be required.
“Until now, this partnership has waited for a demonstration by the Sudanese people of their serious determination and commitment to a united vision and process for rebuilding their country. Successfully establishing a national framework will be pivotal,” the diplomat said.
(Xinhua)