South Sudan Applies For Nearly $2 Billions Loans From China
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.
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%.