Lawmakers Renew Push for Nationalisation of Mining Sector

(JUBA) – MPs in South Sudan have renewed calls for the nationalisation of the mining sector, arguing that greater state control over minerals could help stabilise the struggling economy and curb exploitation by private companies and foreign operators.

The debate came this week in the Transitional National Legislative Assembly as members discussed President Salva Kiir’s speech at the opening of the first parliamentary session. Several legislators said South Sudan’s future economic strength depends on better management of natural resources and ensuring that revenues directly benefit citizens.

Susan Thomas, a member of parliament representing Ezo County under the SPLM, said the country’s mineral wealth, particularly gold, was being extracted by private operators with little benefit for local communities. She urged the government to assume direct responsibility for the sector.

She said South Sudan is rich in various minerals in different states, yet they continue to be exploited by the private sector and foreign companies.

According to her, nationalisation could strengthen the economy by boosting the value of the South Sudanese pound. She added that gold could be used as a reserve asset and a legal tender to support the country’s weak economy.

The South Sudanese pound has steadily lost value against the United States dollar, driving inflation and adding pressure on households. At the official rate in August 2025, one US dollar is worth about 4,600 South Sudanese pounds. For example, 1 million SSP is equivalent to roughly 217 US dollars.

Supporters of nationalisation argue that gold reserves could serve as a financial buffer, helping to stabilise the currency and reduce the country’s heavy dependence on oil. Although oil remains the main source of revenue for South Sudan, lawmakers say economic diversification is urgently required.

For years, the mining sector has been characterised by weak regulations, unclear licensing processes and poorly monitored extraction. These gaps have allowed unregulated private firms, often linked to foreign investors, to earn profits while host communities remain underdeveloped.

Susan Thomas also criticised the continued reliance on foreign suppliers for basic commodities such as drinking water, despite South Sudan’s access to the River Nile. She called on the Ministry of Water and Irrigation to produce a detailed action plan before the next budget session.

She noted that although the Nile runs through the country, South Sudanese are still buying water from foreign suppliers. She said the ministry should prepare a comprehensive strategy in advance of budget discussions.

Other lawmakers shared similar concerns. Nadia Arop, representing Unity State, said parliament should prioritise implementation of existing presidential directives before adopting new policies.

She warned that without focusing on enforcement, parliament would continue discussing the same issues each year without any meaningful results.

Some observers, however, caution that nationalisation alone is not enough. Without transparent institutions and strong governance, the move risks consolidating political power over resources rather than ensuring that the benefits reach ordinary citizens.