South Sudan's Minister of Petroleum, Puot Kang Chol. | Credit: Eye Radio.

The Minister of Petroleum has said the lack of crude oil refineries has contributed to South Sudan’s economic meltdown.

Puot Kang believes that enough refineries can help maximize production and generate hard currency in the market.

“If we do that, if we have refineries at the border, then we will have hard currency for sure. If our refineries work and we have rules, we will have the market,” said Mr. Puot Kang.

South Sudan currently does not have any significant storage capacity for its oil prompting it to export all of its crude oil via pipeline through Sudan.

On Wednesday, the World Bank published the Country’s Economic Memorandum detailing hindrances and potentials to South Sudan’s economic growth.

The Economic Memorandum handbook provides an assessment of the country’s drivers of growth and productivity.

According to the World Bank, oil and agriculture dominate of the country’s economy – with oil contributing 90% of revenue and almost all exports – while agriculture remains the primary source of livelihoods for more than four in five households.

The Country Manager for South Sudan recommended addressing the drivers of fragility, ending all forms of conflict and ensuring peace and stability in all parts of the Country are prerequisites for an inclusive economic recovery.

Firas Raad also said peace and stability are the major drivers of a viable economy in the country.

“Probably the largest driver of growth in the South Sudanese context could be peace and stability and from peace and stability, the are large economic dividends,” Mr. Raad said.

According to a report by the World Bank, South Sudan remains severely fragile, with economic stagnation and instability a decade after independence.

The April’s report indicated that poverty is present all over the country and is being reinforced by ongoing inter-communal conflict, displacement, and external shocks.