Peace deal sees oil revenues soar
Publish date: 10 June 2019
Issue Number: 827
Diary: IBA Legalbrief Africa
Category: South Sudan
The shaky peace deal in South Sudan has brought with it some financial gains over the past two years with the country reportedly making more than $1bn annually in extra oil revenues. Data from the IMF shows that Juba earned $2.3 bn from its oil last year, up from $1.7bn in 2017. The country hopes to make some $2.76bn this year as it raises production. The East African reports that improved earnings have been attributed to the peace deal signed between President Salva Kiir and opposition leader Riek Machar. Violence broke out in South Sudan in December 2013 following a clash between forces allied to President Kiir and those of Machar who, at the time, was the Vice President, disrupting oil production and hurting the oil-dependent economy. ‘The economy is projected to grow at close to four percent annually through the late 2020s when oil production is projected to reach a peak,’ said Dumisani Mahlinza, the IMF’s executive director for sub-Saharan Africa.