The Country Director of the African Development Bank has advised the government of South Sudan to diversify its economy.
Mr. Benedict Kanu told Eye Radio on Saturday, that the government of South Sudan needs to build competent institutions that can attract foreign investors.
“What the African Development Bank would like to see is the situation where the government of South Sudan diversifies away from oil into more productive sectors like agriculture where the majority of South Sudanese are engaged,” Mr. Kanu told
According to him, strengthening small and medium enterprises can reduce unemployment. South Sudan is one of the most oil-dependent countries in the world.
Mr. Kanu mentioned agriculture as one of the sectors South Sudan should invest in. Food production in the country is inadequate.
South Sudan depends on imported food commodities from Uganda, Kenya and other neighboring countries. Insecurity among other factors are hindering agriculture in the country.
Mr. Kanu also advised South Sudan government to help small and medium scale businesses to create jobs. He believes that building good Infrastructure and making favorable investment policies and laws will attract more foreign investors.
“But to do that, you need to put in place an environment that is conducive to foreign investment”.
According to the World Bank, South Sudan continues to under-invest in sectors that would have the largest knock-on effect on poverty reduction and building resilience, with expenditures directed toward defense and security.
Despite hundreds of millions of petrodollars, the government receives monthly, little is known about how it is spent. It says that poverty levels are expected to remain extremely high on the back of severe food insecurity and limited access to basic services across the country.