The UAE Loan of $13 Billion and the Neo-Colonial Exploitation of South Sudan

The latest development with a UAE firm offering to finance $13 billion to South Sudan in return for oil is just one more illustration of the persistent practice of foreign countries exploiting African resources. Wars, starvation, and economic instability have beset South Sudan since the country declared independence from Sudan in 2011. The country's 90% income and over 100% exports are derived from oil, so it's no wonder that international corporations are keen to get their hands on this precious resource.

Having said that, this loan is in no way an investment or charitable gesture. This is the latest example of the neocolonial policies and practices that have afflicted Africa for a long time. People in Africa have been perpetually underdeveloped and dependent on outside forces due to colonial nations' efforts to plunder the continent for its resources. This history of exploitation is carried on by the UAE loan, which guarantees discounted oil from South Sudan for a period of up to twenty years.

Such agreements will have far-reaching effects on the South Sudanese people. The country's already precarious economy would be hit particularly hard by the oil price cut, which is $10 per barrel below the global benchmark. In addition, South Sudan has a track record of defaulting on these kinds of loans; for example, in a prior arrangement, the country only recouped $95 million (including fees, interest, and charges) out of a $446 million loan. An already impoverished nation took a terrible hit as nearly 25% of government revenue was lost due to this shortage.

Even more worrisome is the fact that these agreements do not include any accountability or transparency whatsoever. Unpublished findings from an investigation by an investigatory team constituted by the UN Security Council cast doubt on the legality and motivations of the loan. South Sudanese citizens have a right to know the details of resource management and the effects of these agreements on their daily lives.

African countries must now claim their independence and seize control of their wealth. Fighting back against neocolonial oppression and control is the only way to achieve genuine autonomy and self-governance. South Sudan can build its own economy and infrastructure without taking out expensive, risky loans from other countries. Putting money into South Sudan's people and resources can help them escape dependency and create a better future for everyone.

South Sudan's $13 billion loan from the UAE is a sign of the continued neocolonial exploitation of African countries, not a remedy for them. African nations must stand together in defiance of these practices and in their demands for fair and equitable ties with global powers. That is the only way for Africa to finally gain its independence and self-determination and prosper.