South Sudan Applies For Nearly $2 Billions Loans From China

Chinese Foreign Minister Yang Jie Chi briefs South Sudan's Foreign Minister Deng Alor Kuol in the past(Photo: file)

Chinese Foreign Minister Yang Jie Chi briefs South Sudan’s Foreign Minister Deng Alor Kuol in the past(Photo: file)

August 10, 2016(Nyamilepedia) —– While the West seems to be dragging its feet and shifting its goal posts in funding the Transitional Government, South Sudan has turned to its friend China for help.

Speaking upon his return to Juba, South Sudan’s Minister of Foreign Affair, Hon. Deng Alor Kuol, told the media that he has requested $1.9 billion US dollar from China to boost South Sudan economy and to rebuild oilfields that have been destroyed or shut down by war in Greater Upper Nile.

Hon. Deng is hopeful that his government could secure the high-interest loan from a big pool of $60 billions the Chinese government pledge in 2015 to spend on developmental projects in Africa.

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Alor believes that his proposal was genuine and could be granted. He promised the Chinese government that their staffs in the oilfields will be protected.

The politicians called on the Chinese government and private firms to come and invest in South Sudan oil exploration and mining.

South Sudan-China bilateral relations haven’t been fairing well except in the oil sector which the two countries depend on.

ReadCHINA-SOUTH SUDAN BILATERAL RELATIONS AT A BRINK OF COLLAPSE

While South Sudan’s oil exports account for 5% of the Chinese economy, the young nation depends on the oil to greater than 98%.

Due to the conflict, oil fields in Unity State have been closed down by the opposition while those in Upper Nile state have seen a huge reduction in output as South Sudan conflict gears around Paloch oilfields. This fighting has forced China to evacuate their staff from South Sudan this year and left only less than 70 emergency staff.

In addition to much-reduced output, a big drop in oil prices in the world market has left South Sudan making more losses than it could gain from its oil exports but the landlocked young nation has no other commodities to substitute the oil revenue.

A recent fighting in the capital has forced all investors to flee the country and now make their return almost impossible as fighting continue to intensify around Juba-Yei road and other main outlets to the neighboring countries.

Latest reports indicate that South Sudan’s inflation is now skyrocketing at over 600%.

5 comments

  • Deang Gatluak

    Hope China rejects this. The money will vanish into looters pockets and then the future generations will be sitting with debts for generations to come.

    What are the top priorities? Building roads for the Landcruiser V8 brigade? or to invest to generate work in agriculture for future prosperity.

    Why not selling off the useless war material to get money back to the people?

    JCE mob still clueless

  • China should know by now by doing this giving money to Kiir is funding the war, that is not acceptable, Hon. Deng Alor should not beg for Kiir to carry out is warfare.

  • Exactly, China need not to be fooled by Jieng Council to giving them a lot of money for not really purpose but rather than to funds war equipment armored,so Kiir government then stay in power.

  • John Kijana

    South Sudan now with a galloping inflation at 400%, mounting national debt at U$3.62billion, depleted national reserves, less than 8% skilled workforce, oil production at less than 50,000bpd, deficit at 30% of GDP, corruption rate at 95%, 90% risks and 0% collateral, 0% investor confidence, undeveloped physical infrastructure, political instability and anarchy, credit unworthy, 90% illiteracy. The Chinese must be idiots to give South Sudan such money, or rather Kiir and his jaangs are selling off the country.

  • I, think chief of Gogrial village & his stooges of Jieng council of Evildoers in Juba, think that they are doing borrowing money from China, like as if they are in Gogrial or Melut cattle’s AUCTIONS business. Now their mankey business plummeting from ” miaatha-apoul to miaatha-apaal & even Jieng-apaal now. China have his own “Reservations” as acussed snatching SS Oil by ex-finance minister Deng Athoribe. Kiir-malong unknown gunmen militia killed Chinese two UN innocent peacekeepers in the recent attack to eliminate Dr.Riek Machar.
    Therefore, China will not trust kiir monster regime which is too deformed to be reform by International Community itself.
    This the of the game no more killing tools SS, need peace and humanitarian assistance for our people.
    GameOver no more embarrassing embezzlement please Alor enough is enough.
    God saves SS from unfitted mobsters bustards.