Browsing: Doing business in EAC in the times of COVID-19

Ezekiel Lol Gatkuoth

It is not secret that South Sudan relies on oil to fuel most of its economy and state coffers, and that the revenue of such oil is dependent upon its export via pipeline to Port Sudan.

As a result, oil cooperation between both countries is at the centre of key economic activity: Sudan’s economy benefits from transit fees paid by South Sudan, and South Sudan’s economy benefits from Sudan’s oil export infrastructure. While one doesn’t go without the other, oil prices instability disturbs a tricky balance put in place between both countries.

In December 2016, as oil prices had fallen drastically below $40 dollars a barrel, the Agreement on Oil and Related Economic Matters (AOREM) between Sudan and South Sudan, known popularly as Cooperation Agreement, was due to expire, and Transitional Financial Arrangements (TFA) fees of $3.02bn due to Sudan were not yet fully paid, the two sisterly countries, mindful …