South Sudan wins $8B Chinese loan offer

A sign at the airport in Juba, South Sudan. China has promised an $8 billion loan for development projects in the country. Photo by: BBC World Service / CC BY-NC

China’s promise of an $8 billion loan for infrastructure, agriculture and other development projects has given South Sudan a much needed breather from its financial woes.

China made the loan offer following South Sudan President Salva Kiir’s recent visit to the Asian country, Reuters says. The money will be disbursed over the next two years to finance projects that will be conducted by Chinese companies — in line with China’s long-standing aid approach in Africa.

The loan could help ease some of South Sudan’s financial woes, which stem from its halted oil production industry. The shutdown of the country’s oil sector is connected to the ongoing conflict between South Sudan and Sudan. China is a major investor in South Sudan’s oilfield but is also a major supporter of Sudan.

Read more:

Read more development aid news online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.

About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.