The government of South Sudan is considering a new infrastructure financing strategy that would link road construction projects to the country’s natural resources.
The proposal was discussed during a Council of Ministers meeting in Juba on Friday, chaired by President Salva Kiir Mayardit.
Officials revealed that the government is evaluating the possibility of engaging an unnamed company with experience in resource-backed infrastructure financing to undertake road construction projects.
The disclosure, contained in a statement from the presidency, offers the clearest indication yet that the government is moving forward with plans to tie infrastructure development to natural resource financing. This approach has already drawn scrutiny following the Oil for Roads initiative, which was marred by corruption.
However, key details about the potential agreement remain undisclosed. Authorities have not revealed the identity of the company involved, the specific natural resources that would back the project, or the repayment structure of the deal.
While authorities have framed the strategy as a way to unlock large-scale infrastructure without immediate cash outlays, critics warn that such deals risk mortgaging the country’s mineral wealth under opaque terms.
Notably, the cabinet statement did not name the company under consideration, nor did it disclose the specific resources involved, the valuation framework, or repayment conditions.
This development comes just a month after South Sudan’s decision to finance a $2 billion road construction initiative using gold reserves as collateral.
The government, approved the ambitious road plan and issued a sovereign guarantee to China’s Shamrock Global Group to construct and upgrade more than 1,031 kilometres of highways.
The proposed network will link Juba to Yei, Kaya, Lobonok, Wau, Raja, and other strategic towns, corridors critical to trade, security operations, and humanitarian access.
Government officials have described the initiative as transformative. Information Minister Ateny Wek Ateny said the total cost of the project is $2 billion, with an average of $2.3 million per kilometre.
According to the presidential press unit, the plan—proposed by Mining Minister Lasuba Ludoru Wongo—will leverage South Sudan’s gold as collateral to unlock financing and fast-track infrastructure development.
On paper, the logic is compelling. South Sudan possesses untapped mineral wealth but suffers from some of the weakest road infrastructure in the region. Large parts of the country remain cut off during the rainy season, hampering trade, raising food prices, and undermining state authority.
Roads are widely viewed as the backbone of economic growth and national integration. By pledging gold reserves, the government argues it is utilising dormant natural assets to build urgently needed public goods.
However, critics have raised concerns over the price per kilometre. At approximately $2.3 million per kilometre, the figure appears significantly higher than comparable projects in neighbouring countries.
Those opposed, are questioning whether there was an open and transparent procurement process and why a detailed technical and financial feasibility study has not been made public. Others argue the agreement does not comply with South Sudan’s public procurement and value-for-money standards.
These concerns are not emerging in isolation. South Sudan’s previous “Oil for Roads” initiative, which allocated crude oil shipments to finance infrastructure in partnership with foreign firms, remains a cautionary tale.
A September 2025 UN report alleged that between $1.7 billion and $2.2 billion in oil revenue was paid to companies affiliated with Vice President Benjamin Bol Mel for projects that were either incomplete or of poor quality. The episode weakened public trust and cast doubt on the effectiveness of resource-backed financing models.
The proposed “Gold for Roads” initiative inevitably invites comparison. Like oil before it, gold is being positioned as a shortcut to development. But the mineral sector itself faces structural weaknesses.
South Sudan lacks a comprehensive national geological survey to accurately determine the scale and quality of its gold deposits.
In December 2023, South Sudan signed a seven-year Integrated Systematic Geological Survey agreement with China’s Geological Exploration Technology Institute (GETI) to establish the value of the country’s minerals, starting from Western Bahr El Ghazal State. But according to reliable sources, this deal, valued at $70 million, has been cancelled for undisclosed reasons.
According to the South Sudan Cadastre Portal, which was decommissioned in December 2025, around 90 companies held exploration licenses across the country, yet none had secured a full mining license.
In practical terms, the government is leveraging anticipated future value from a sector that remains underdeveloped and largely informal. The country loses $270 million annually in gold smuggled to the United Arab Emirates, according to a SWISSAID report published in November 2025.
There are also broader governance concerns. Resource-backed loans and sovereign guarantees carry long-term fiscal implications. If gold production underperforms or global prices fluctuate, the burden may shift to public finances, increasing debt pressure on future generations.
Without meaningful consultation and transparent frameworks, these initiatives, if they ever work, risk deepening local grievances instead of fostering inclusive growth.
South Sudan has long struggled with poor road connectivity, with most parts of the country becoming inaccessible during the rainy season. Successive governments have pledged to prioritise road construction, but progress has been slow due to funding constraints and governance challenges.
