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Gov’t to prioritize non-oil revenue for sustainability, says Malual

Author: Alhadi Hawari | Published: July 16, 2024

Hon. Malual Tap, the First Undersecretary in the Ministry of Finance and Planning delivering his speech at handover ceremony on July 15, 2024 - Eye Radio/Lou Nelson

The First Undersecretary in the Ministry of Finance and Planning emphasizes the government’s need to prioritize non-oil revenue for sustainable economic growth, contrasting it with oil revenue.

This follows Sudan’s announcement that the halt in South Sudan’s oil transportation has resulted in significant financial losses for both nations.

The ongoing conflict in Sudan has disrupted pipelines, particularly the Bashaer-two pipeline from Paluch in Upper Nile State to Port Sudan.

The cessation of pipeline heating has caused crude oil to freeze, halting operations. Efforts to rehabilitate the pipelines are ongoing.

In March 2024, Sudan’s Ministry of Energy and Petroleum declared force majeure on one pipeline.

Malual Tap, First Undersecretary of Finance and Planning, emphasizes the necessity of shifting focus to non-oil revenue for economic stability in the country.

“Let me say ‘maybe’ good news, but with caution and optimism, I have to approach it from Sudan likely in one month, maybe we will be able to resume our oil exports but until then we will continue to struggle,” said Hon. Malual.

“I think it’s high time for our country to move and develop other sectors of our economy so that if oil is not flowing or being affected by outside factors,” he said.

“We can rely on other sectors more importantly the agriculture and the mining sectors but above all, we should switch our main focus to the most sustainable revenue. We are in our country and that is the non-oil revenue.”

Malual highlighted that over the past six months, South Sudan has not exported crude oil to bolster the national budget.

“A country civil servant has gone for a solid 9 months without receiving their salaries and I know during the oath-taking you [Finance Minister] were also reminded by His Excellency the President,” Malual said.

“What makes it very difficult for the Minister of Finance to accumulate all these months is our over-reliance on oil exports since the creation of this nation 13 years ago,” he said.

“We’ve been relying on one commodity export, the oil and as we speak today, it’s been exactly six months without exporting our oil, especially the Dar Blend that used to support our budget, you can imagine the struggle that the ministry is going through and continues to.”

South Sudan’s economy depends heavily on revenue generated from crude oil, transported through Sudan for international sale.

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