South Sudan admits failure to build critical national highways
Juba, 28 August 2026
Vice President Taban Deng Gai has admitted South Sudan failed to build critical highways or a single oil refinery since 2005, stalling economic growth and regional trade.
A Stark Admission of Infrastructural Deficits
Speaking at the 7th Edition of the Global Logistics Convention at the Pyramid Hotel in Juba on 20 August 2026, South Sudan’s Vice President, Gen. Taban Deng Gai, conceded that the nation has suffered from severe infrastructure deficits [1]. The Vice President highlighted the government’s failure to construct critical national transit routes, specifically pointing to the Juba-Nimule and Juba-Nadapal highways [1]. These corridors are vital for connecting the landlocked nation to its East African neighbours, yet regional corridors in Tanzania, Rwanda, and Burundi remain vastly more developed [1]. This admission marks a major policy acknowledgement that developmental stagnation has severely hindered South Sudan’s integration into the regional economy [1].
Decades of Development Stagnation
The roots of South Sudan’s infrastructural deficit trace back to a prolonged period of developmental stagnation. Between 2005 and the implementation of the “oil for roads” policy in 2016, the country experienced 11 years of complete stagnation in road development [1]. While the 2016 policy successfully facilitated the construction of the Juba-Bor Road, overall infrastructure progress has remained largely stalled [1]. Vice President Deng Gai noted that the nation has failed to build crucial highways or construct a single domestic oil refinery over a span of 21 years since 2005 [1]. He attributed this long-term failure to a lack of critical thinking and wasted time, which has left the country entirely dependent on expensive fuel imports [1].
The Human Cost: Impact on Refugees and Host Communities
The failure to complete the Juba-Nadapal highway has direct and severe consequences for regional safety and displaced populations [1][GPT]. This corridor serves as the primary overland link connecting South Sudan to the Kenyan border, situated near the Kakuma refugee camp [GPT]. The lack of a secure, paved highway directly compromises border safety and increases transport costs, making voluntary repatriation hazardous for refugees considering a return home [1][GPT]. For both the refugee population and the host communities in the neighbouring Turkana region, the lack of infrastructure limits access to humanitarian aid, dampens local trade, and deepens economic vulnerability [1][GPT].
Vulnerability to Global Supply Shocks
Without domestic refining capacity, South Sudan remains highly vulnerable to international logistics disruptions. On 26 August 2026, Vice President Deng Gai emphasised that because the nation remains landlocked and dependent on imported diesel, its economy is highly exposed to maritime bottlenecks at the Strait of Hormuz and the Bab el-Mandeb strait [1]. This dependency keeps local fuel costs extraordinarily high [1]. The Vice President argued that developing the logistics and transport sectors in East Africa is impossible without first resolving the prohibitive costs of power, energy, and fuel [1].
Proposing PPPs and Energy Imports
To address these systemic bottlenecks, the transitional government is planning to pivot toward a public-private partnership (PPP) model [1]. Vice President Deng Gai suggested that because the “oil for roads” funding allocation has become too small, the government should introduce road tolls to allow private developers to build and operate key transport corridors without imposing new taxes [1]. Additionally, to resolve severe energy shortages in states outside Juba—which currently holds the country’s only consistent power supply—the government plans to import electricity from neighbouring Uganda and Ethiopia to supply states such as Bor and Rumbek [1].
Systemic Land and Financial Reforms
Beyond physical infrastructure, South Sudan’s economic progress is restricted by its domestic financial system. The Vice President criticised the country’s “flawed” land system in Juba, which currently requires land as collateral and consequently prevents commercial banks from lending to local businesses [1]. This environment has allowed foreign financial institutions, such as Kenyan and Ethiopian banks, to finance their own nationals within South Sudan, a dynamic Deng Gai described as “very dangerous” for domestic economic sovereignty [1]. To resolve this, he advocated for moving the national capital to Ramciel, a move intended to reform the land tenure system and unlock commercial lending [1].