South Sudan eyeing mining to reduce dependency on oil
February 11, 2015 (JUBA) – Concerned about the current decline in prices of crude oil in the global market, South Sudan is turning to mining sector to reduce dependency on oil resources.
“This is an attempt by the government to diversify the economy by exploring and exploiting other plentiful mineral and natural resources in the country,” the aide disclosed in an interview on Wednesday.
“It has been one of the strategic plans of the president and the government as a whole to move away from the dependence on oil revenue.Before the current crisis, the president was traveling around to encourage and solicit direct foreign investment in different economic sectors,” he added.
President Salva Kiir reportedly visited some Arab countries interested in investing in trade, agriculture, roads, health and mining sectors.
South Sudan heavily relies on oil to fund up to 98% of its budget. However, its oil production declined by about a third since fighting broke out in the country in 2013 between its rival factions.
According to the aide, the economic cluster, which regularly reports to the president emphasises on developing the agricultural sector.
“The committee has already identified areas as such mineral deposits and their locations in the country”, he further explained.
Mawien Makol, the foreign affairs spokesperson said the conference was an opportunity for participants to share ideas on mining issues.
“This area has lots of potentials for investment. The other significance is that with diversification of the economy, we can move forward,” he separately told Sudan Tribune.
“The minister is therefore going to assure investors of the commitment of the government to create conducive environment for investments because we have potentials in the mining sector”, Makol stressed.
South Sudan president Salva Kiir signed into law a 2012 Mining Act permitting foreign entities to explore the country’s minerals and reversed earlier licenses it had imposed prior to South Sudan’s July 2011 independence from its northern neighbour.
(ST)