The Impact of UN Sanctions on South Sudan’s Economy

By Emmanuel Alberto

The recent US sanctions on South Sudan have been imposed to pressure the government of President Salva Kiir to end the civil war and the humanitarian crisis that has plagued the country since 2013. 

The sanctions target 15 South Sudanese oil operators that are important sources of revenue for the regime, as well as individuals and entities that are accused of human rights violations, corruption, and obstruction of peace efforts.

The impact of the sanctions on the economy and people of South Sudan is likely to be severe, as oil is the main export and source of foreign exchange for the country. According to the World Bank, oil accounts for more than 90 percent of government revenues and 60 percent of the gross domestic product (GDP) in South Sudan.

The sanctions could reduce oil production and exports, which are already low due to the conflict and lack of infrastructure. 

This could lead to further fiscal deficits, inflation, currency depreciation, and shortages of basic goods and services.

The people of South Sudan are already suffering from one of the worst humanitarian crises in the world, with more than 7 million people in need of assistance and protection and more than 4 million displaced by the violence. The sanctions could worsen their situation by limiting access to food, water, health care, education, and livelihoods. 

Moreover, the sanctions could also affect the delivery of humanitarian aid, as some of the sanctioned entities are involved in the transportation and distribution of relief supplies.

The US sanctions are intended to create leverage for a peaceful resolution of the conflict and a political transition in South Sudan. However, they also pose significant challenges and risks for the economy and the people of the country. The effectiveness of the sanctions will depend on their implementation and enforcement, as well as on the cooperation and coordination of other international actors, such as the African Union, the United Nations, and neighboring countries. 

The sanctions should also be accompanied by diplomatic engagement and support for inclusive dialogue and reconciliation among all parties to the conflict.