South Sudan's Petroleum Revenue Mismanagement and the Emerging Debt Crisis
Publication Summary
South Sudan, an oil-rich nation, is grappling with a profound and escalating debt crisis that threatens its long-term economic viability. This Brief investigates the root causes of this crisis, asserting that it is not merely an unfortunate consequence of external economic shocks but a direct result of a systemic failure to implement the nation's own legal frameworks for fiscal governance. Specifically, the government’s failure to operationalize the sovereign wealth funds mandated by the Petroleum Revenue Management Act (PRMA) of 2013 has created a fiscal vacuum. This vacuum has been filled by a reliance on opaque, non-concessional, and high-interest oil-backed loans, leading to a cascade of defaults and high-stakes legal challenges from international creditors.
Through a detailed analysis of public debt data, court records, and institutional reports, this document demonstrates a clear link between a lack of fiscal transparency and the country's financial distress. The analysis integrates comparative case studies from Mozambique, which serves as a cautionary tale of the devastating consequences of hidden debt, and Uganda, which provides a successful blueprint for transparent and accountable petroleum revenue management.
Drawing upon these findings, the Brief presents a series of actionable recommendations designed to enhance public financial management, facilitate the effective operationalization of sovereign wealth funds, and reestablish the fiscal integrity necessary for sustainable development and poverty reduction in South Sudan.
Bec George Anyak is a researcher with expertise in policy analysis, trade policy, budgeting, business planning, and development strategy. He also serves as a Lecturer of Economics at Upper Nile University, South Sudan. Bec earned his Bachelor of Economics from the University of Nairobi in Kenya and an MSc in Applied Economics from the University of Strathclyde in Glasgow, UK. He is current Deputy Minister of Finance and Planning, South Sudan. Previously, Bec held senior positions, including as the State Minister of Finance in the now-defunct Eastern Lakes State Government and as a Commissioner for Yirol West County, Lakes State. His extensive experience in both academic and governmental sectors underscores his commitment to improving economic policy and development in South Sudan.