South Sudan is facing a worsening economic collapse caused by years of civil war and a sharp decline in oil revenues, which once accounted for the bulk of government income. As oil production has fallen drastically, many citizens and even members of the armed forces have turned to an informal and illicit economy. A recent UN Security Council report reveals that the illegal trade in charcoal and gold is booming, with South Sudan’s security forces and informal networks heavily involved. Charcoal, produced cheaply and transported using military vehicles, is sold domestically and smuggled to Kenya and Uganda, threatening the country’s forests while enriching traders abroad. Gold mining, almost entirely unregulated, has become another key outlet for survival and profit. The majority of South Sudan’s gold is smuggled into Kenya and Uganda, where it is sold for dollars, which are then used to import goods back into the country. This parallel system undermines state institutions, with local authorities and the central bank unable to compete with foreign buyers offering better rates. Official trade figures are scarce, but the UAE reported gold imports worth $47 million from South Sudan between 2022 and 2023, though much of the country’s gold is believed to be reclassified as Ugandan or Kenyan. Meanwhile, the collapse in oil production has devastated government revenues. From producing 350,000 barrels a day at independence, output has fallen to around 45,000 barrels per day after pipeline damage in 2024. Despite limited oil exports and modest non-oil revenues, the government has failed to pay salaries, finance elections, or maintain basic services. This has fueled corruption and extortion in daily life, eroding trust in state institutions. The humanitarian situation is dire: as of late 2024, more than half of South Sudan’s population faces crisis-level food insecurity or worse, with millions malnourished and tens of thousands on the brink of famine. (ICE NAIROBI)

Fonte notizia: The EastAfrican