The Ministry of Mining has called on commercial banks to finance the development of the mining sector.
Martin Gama Abucha says there is a need for the banks to influence transactions between private foreign investors and the government.
The mining sector often requires investments for infrastructure, including pre-investment expenditures on exploration and production facilities.
The banks – through loans – enable governments and investors to purchase new equipment and refurbish existing plants, and to ramp up production.
South Sudan’s metals and mining sector has deposits of copper, diamond, gold, iron ore, lead, limestone, manganese, marble, and zinc.
These metals and minerals are mined for profit and then used in jewelry-making, industrial applications, and investments.
But Minister Martin Abucha said the sector has not been financed.
He called on commercial banks to provide loans and facilitate investment in the sector that has the potential to employ thousands of people.
“The commercial banks are not contributing enough to the sector today; they could do better. They raised concern that we have to address mostly the lending laws, it seem that the lending law may not be protecting them very well where they lend and couldn’t recover it,” Minister Martin Abucha said.
“The geological map for our mineral, for someone to invest, he has to know what you have. We are targeting from 30% to 40% in the country and taking the issue of geological survey and geological laboratory in South Sudan.
“We are taking it seriously in many countries. Mining is the one driving the economy now . If we cannot pump oil we do agriculture what can you depend on”
For his part, the Manager of Nile Commercial Bank said the government should provide an enabling environment for banks to invest in the sector.
“It’s one of the most important areas of our resources in South Sudan, in mining we are left behind. So people have been concentrating mostly in Oil leaving behind the Gold and Diamond. A lot of others resources which very important and valuable,” Osama Muhammad Bilal told Eye Radio.
“The meeting resolves to succeed in Mining, one is mapping, geological survey and lab for examination to facilitate and make mining work very easy.
“Some of these banks participated in the meeting are Nile Commercial Bank, Buffalo Bank, ECO, cooperative, equity Banks and many others.”
In 2020, the Bank of South Sudan announced plans to purchase crude gold locally in a bid to boost the country’s economy.
The particular area of focus was Kapoeta where thousands of artisanal miners are engaged in the gold business.
But the plan failed as local miners in Kapoeta preferred selling their gold to Somali nationals who set up the price above the government price.