(JUBA) – President Salva Kiir has announced that oil production in South Sudan has resumed, a development he described as a key step towards economic recovery following months of financial uncertainty. The statement was made during the official opening of the First Session of the Revitalized Transitional National Legislature on Wednesday, 16 July 2025.
Speaking to lawmakers in Juba, President Kiir admitted that the national economy has been severely affected by recent disruptions, particularly the temporary shutdown of oil production. The halt in oil activities, which provide more than 90% of the country’s revenue, had led to delays in paying public servants, soldiers, and other organised forces.
He stated that “decisive action” by the government had enabled the country to restart oil output and expressed optimism that the economy was now on a steady path toward stability.
Despite this development, President Kiir urged caution and discipline in handling public resources. He said he had instructed the Vice President in charge of the Economic Cluster to prioritise the regular payment of salaries and restore basic public services to ensure stability and confidence in government institutions.
In addition to addressing the immediate challenges, the President laid out a broader economic vision that goes beyond oil. He stressed the importance of reducing dependency on oil revenue, warning that South Sudan must not repeat past mistakes of over-reliance on a single resource.
He said the long term goal is to diversify the economy, and highlighted sectors such as agriculture, fisheries, mining, trade, and infrastructure as key areas that could support future growth. He also underlined the need to invest in human capital to build a sustainable and resilient economy.
To support this vision, President Kiir called for strict fiscal discipline, better financial management, and a tough stance against corruption. He said these are the “pillars of national recovery” and that his administration would pursue them with commitment and transparency.
The South Sudanese Pound (SSP) has seen pressure from inflation and a foreign currency shortage in recent months. With resumed oil production expected to increase revenue flows, the government is under renewed pressure to stabilise the exchange rate and pay outstanding public sector salaries.
The return to oil production could help ease these pressures in the short term. However, analysts say that structural reforms and economic diversification remain crucial to avoid repeated cycles of crisis tied to oil price and production shocks.