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South Sudan oil corruption fuels risk of widespread poverty

South Sudan oil corruption fuels risk of widespread poverty
Friday, 19 September 2025 21:42
  • UN report says $2.2 bln diverted from “Oil for Roads” program 2021–2024
  • Nearly 90% of planned roads never built as funds vanished to shell firms
  • World Bank warns poverty rate could hit 92% amid inflation and mismanagement

South Sudan’s oil revenues continue to vanish to the detriment of its population. A new report from the UN Human Rights Commission revealed that more than $2.2 billion was diverted between 2021 and 2024 from the “Oil for Roads” program, which was intended to finance road construction.

The report, covered by the specialized press on September 18, comes days after the World Bank warned of the threat of near-universal poverty in South Sudan. In 2022, the Bank estimated that 76% of the population lived below the national poverty line.

At the same time, the country’s gross domestic product (GDP), estimated at about $12 billion in 2015, dropped to roughly $5.4 billion in 2024, according to OilPrice, citing World Bank and IMF estimates.

The UN report noted that nearly 90% of the promised roads were never built. It found that less than $500 million worth of usable infrastructure was delivered, while about $1.7 billion was channeled without results to shell companies, several tied to Vice President Benjamin Bol Mel.

The World Bank stressed that oil provides about 90% of government revenue, but that these resources are drained by corruption and poor management instead of financing productive investment.

This diversion deprives the state of the means to fund development. Without roads, rural areas remain isolated, limiting the flow of farm goods and driving up food prices. The World Bank said inflation reached about 105% in 2024, while the IMF projects 65.7% in 2025, further reducing purchasing power.

The Bank estimates monetary poverty at 92% in 2025. The country’s near-total reliance on oil revenues for its budget also deepens fiscal vulnerability and blocks diversification.

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