News Industry

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.

On the same topic
Nigeria considers increasing 75 MW electricity exports to Togo Talks focus on meeting rising demand and recent supply disruptions Expansion depends on...
Liz Westcott is confirmed as CEO after serving in an interim role since December The appointment comes as Woodside expands operations, including in...
Tanzania courts Chinese investors to rebuild a textile sector hit by a near 40% production decline since 2020. The number of operational textile...
DRC, South Africa to resume Inga 3 talks in April Plans include boosting power exports up to 5,000 MW $10bn+ project still in planning with World...
Most Read
01

Telecel Ghana to boost network investment by 150% in 2026 Expansion targets capacity, reliabi...

Telecel Ghana plans 150% investment increase in MTN-dominated market
02

CCR-UEMOA presents mid-term review of private sector competitiveness efforts Reforms, AfCFTA trai...

Strengthening the Business Climate in WAEMU Countries: CCR-UEMOA Reviews Its Midterm Record
03

Togo parliament adopts WAEMU law against currency counterfeiting Bill defines offences including ...

Togo Passes Law to Criminalize Counterfeiting of West African CFA Franc
04

BOAD plans 750 billion CFA francs financing for Burkina Faso Funds to support key sectors and Rel...

BOAD to Mobilize $1.3 Billion in Support of Burkina Faso 2026-2030 Development Plan
05

Yassir moves into media distribution in France with the acquisition of Paris-based adtech firm Kaw...

Algeria-based Yassir expands into media distribution in France with planned acquisition of Kawarizmi
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.