South Sudan to receive largest investment from South Africa

South Sudan to receive largest investment from South Africa

South Sudan is making its first big foreign investment as South Africa invests $1 billion in South sudan oil sector.

After the peace deal was signed two months ago, the increasing production will help the country to recover as South Sudan has Africa's third largest oil reserves at 3.5 billion barrels. Signing of this agreement would benefit both the countries.

The oil minister of South Sudan says, "South Africa will invest $1 billion into the war torn country's oil sector and this would be the largest investment in the East African country's history.

It has been analysed that, with this agreement to support South Sudan oil sector, if South Africa money comes through by the development of oil sector then it would be incredible. South Africa is also to join Chinese, Indian, Malaysian and other interests in South Sudan's oil sector.

since South Sudan has plans to build a refinery with a capacity of 60,000 barrels of oil per day, the South African money will be used for the refining and processing of oil and gas, research and development and also transfer of technology.

Guillaume Doane, CEO of Africa oil and Power told the AP, "South Sudan needs investment capital and infrastructure. Working with South Africa on this level will give it both." 

The Senior analyst for africa Risk Consulting, Mr. Shawn Robert Duthie, stated that, "it would almost be like being one of the first to invest in Nigeria. Its just an MOU and agreements like this, the implementation will be very long." south Sudan's economy is considered as one of the world's most dependent on oil revenues.