In May 2024, B Smart, a Malaysian investment company, announced plans to invest $100m to construct a cement plant in Juba.[1] Pending approvals, the plant will be operational within 24 months and will source limestone from Kapoeta, Eastern Equatoria State, about 275 km east of Juba.
South Sudan has the fastest-growing population in the world.[2] Population growth will increase the demand for cement, which is necessary for infrastructure development. The cement industry is crucial for socio-economic development, import substitution, and employment opportunities. In this article, the author will analyze the benefits of developing a robust cement industry in South Sudan.
South Sudan is an oil-reliant economy seeking to diversify and industrialize. Cement is a crucial industry for infrastructure development, reducing reliance on cement imports and creating employment opportunities. Developing the cement industry in South Sudan will revive the economy, improve infrastructure development, reduce dependence on imports, and preserve hard currency.
South Sudan holds sub-Saharan Africa’s third-largest oil reserves and struggles to diversify its economy. The country relies on mercurial international oil prices. According to the Platts OPEC Survey from S&P Global Commodity Insights, output fell to 70k bpd in March and 60k bpd in April 2024 due to the conflict in Sudan. Developing a cement industry in South Sudan will create alternative government revenue streams and economic activity independent of the oil industry.
The South Sudanese pound (SSD) struggles against the United States dollar (USD) because the country relies on imports. The Central Bank of South Sudan allocates hard currency to traders to import commodities that could be produced locally, such as cement. According to the Observatory of Economic Complexity, South Sudan imported $20.8M in cement in 2022.[3]
South Sudan’s population is growing.[4] The demand for cement will increase. The factory will prioritize local demand, saving the country millions of dollars in hard currency allocation for imports.
Dangote Cement Plc eliminated Nigeria’s cement importation regime.[5] In 2011, Nigeria was one of the largest importers of cement globally, which heavily impacted the country’s balance of payments. After investing in a robust cement industry, Nigeria eliminated all cement imports. South Sudan can replicate this example.
The unemployment rate in South Sudan has been increasing since 2011. The causes of unemployment are stagnation in oil production and a lack of economic diversification. The development of the cement will employ thousands of people directly and indirectly. These employment opportunities will be independent of South Sudan’s oil industry.
South Sudan is a blessed nation, and the mining industry is largely untapped. The Government of South Sudan should prioritize the mining industry in its quest for economic diversification. South Sudan has gold, diamonds, copper, and limestone. Limestone mining and the cement industry are crucial to taking South Sudan one step further toward economic prosperity.
Akol Nyok Akol Dok is a writer and economic analyst who has been featured on several media platforms. The South Sudan Mining Journal awarded him the Best Analyst of 2024.
The views expressed in ‘opinion’ articles published by Radio Tamazuj are solely those of the writer. The veracity of any claims made is the responsibility of the author, not Radio Tamazuj.
