- Sudan and South Sudan reached an agreement last month to reopen the border between the two countries ending a decade-long deadlock.
- The closure of the borders had devastated both the economies as both were deeply interdependent.
Sudan and South Sudan reached an agreement last month to reopen the border between the two countries ending a decade-long deadlock. The closure of the borders had devastated both economies as both were deeply interdependent. Landlocked South Sudan depended on the exports of crude oil, transporting it through Sudan. Fees from South Sudan’s oil export and the export of consumable goods to South Sudan formed a major revenue source for Sudan.
The border was officially drawn after South Sudan became independent in 2011. Soon the border was closed when both the countries descended into war over the disputed oil-rich area, Panthou/Heglig, which lies on their border.
Opening of the cross-border trade is likely to boost the income and also promote peace and social relations of communities living along the borders leading to economic benefits, such as creating jobs, supporting livelihoods, and contributing to food security.
However, there are many challenges for the agreement to work well. There are 11 border states; five in South Sudan and six in the Sudan accounting for half of the population of the two new Sudans. Prior to the separation, livelihoods of people particularly pastoral communities living in the 11 border states were dependent on free trade and movement across the boundaries. With the secession of South Sudan, most oil reserves and vegetation became part of South Sudan depriving Sudan of such strategic resources. With the involvement of the African Union, a “soft borders” agreement was signed in 2012, which had its limitations due to a lack of political vision.
After the popular uprising in 2019, the new leadership in Sudan under Prime Minister Abdalla Hamdok the discussions on the border issues were revived.
For the Agreement to work efficiently, it needs strong political will, appropriate macro-economic policies, better governance, institutional capability etc to create an enabling environment for trade and economic diversification to thrive.
