Ethiopia and South Sudan to Collaborate on Development of Joint Oil Infrastructure

$778-Million Road to Link the Landlocked Countries

East African countries South Sudan and Ethiopia have officially agreed to collaborate on a construction project to expedite their oil sector development. The agreement was reached on July 6th, 2024, during a critical meeting of industry executives and governors from both countries.

The deal was first announced and verified in June 2024 by South Sudan’s Transitional National Legislative Assembly. The commencement of the project awaits an agreement from the South Sudanese president, Salva Kiir.

Negotiations highlighted the necessity of strengthening collaboration in several sectors, including trade, investment, infrastructure development, and security. Those who attended the meeting described the interactions as ‘cordial and honest.’

Ethiopia and Sudan have both agreed to the construction of a major road meant to facilitate the easier passage of oil products originating from South Sudan and heading for Djibouti. The road will link the Upper Nile state in South Sudan to the Ethiopian border and pass through Gambella-Pagak, Maiwut, Malakal-Maluth, and Paloich.

The agreement also follows a deal reached on June 24th, 2024, by the South Sudanese parliament to fund a $778-million road project connecting the landlocked countries.

The Project will Heighten Security and Expand Trade Relations

To learn more about the collaboration between Ethiopia and South Sudan, go to Africa.BusinessInsider.com:

“The minister of cabinet affairs in Upper Nile State David Nyang, noted that the decision to collaborate on the project resulted from the prospect of greater commerce.

‘We recognize the importance of border trade, and this can be enhanced through the existence of roads and the provision of security,’ said David Nyang.

In response, South Sudan's deputy minister of foreign affairs and international cooperation, Semaya K. Kumba, applauded the meeting as a watershed moment in bilateral ties, underlining the agreement's ability to solve common concerns and foster collaboration.”

Source: Ethiopia And South Sudan Greenlight Construction of Joint Oil Infrastructure - Business Insider Africa

https://africa.businessinsider.com/local/markets/ethiopia-and-south-sudan-greenlight-construction-of-joint-oil-infrastructure/gfecnnc

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Written by AQUAMERGE

July 10th, 2024