South Sudan economy crippled by years of U.S sanctions – expert

JUBA – The Executive Chairman of African Energy Chamber on Tuesday urged the United States to lift sanctions it imposed on South Sudan’s oil firms.

NJ Ayuk said South Sudan’s oil industry has been crippled by years of sanctions that are depriving its capacity to develop and harness it’s huge potential in the oil and gas sector.

“Those sanctions are crippling the industry, are crippling the economy. The sanctions were meant to have a unified government and to have peace and that has been done and the sanctions have to be lifted,” Ayuk said during the opening of a two-day conference on oil and power.

In March 2018, the United States imposed sanctions on 15 South Sudanese oil operators that it said were important sources of cash for the government.

The sanction aims to increase pressure on the country’s leadership to end the country’s conflict and humanitarian crisis.

Ayuk believed that the U.S. sanctions is preventing the country from harnessing its natural resources.

“But we can’t move this industry without tapping on some of the sensitive issues, issues around governance that we all are dealing with,” Ayuk said.

“But also issues around sanctions, I might get in trouble for saying this but I think it is time to end sanctions in South Sudan.”

Ayuk argued that sanctions are hindering foreign investment in South Sudan’s oil and gas industry.

“How do we tell South Sudan you going to move to a greener economic but you can bring in money because you can’t deal with entities that have been listed on the sanction list?.”

He said the sanctions are making it difficult for the African youngest nations to use oil and gas to foster economic growth and create jobs and business opportunities.

“That is counterproductive to a greener energy future, if you are going to look at defeating energy poverty and really improve the lives of the people and then you have some of the biggest restrictions there, we are shooting ourselves on the foot.”