By: Ecofin agency

South Sudan signed a memorandum of understanding with Djibouti in late August to develop river and dry ports, part of a strategy to cut reliance on limited transit options and secure crude exports.

The move complements February’s launch of the Djibouti–Ethiopia–South Sudan–Uganda (DESSU) Corridor Authority, designed to coordinate cross-border infrastructure.

Oil accounts for nearly 90% of South Sudan’s exports, but existing pipelines and transit routes leave Juba exposed to geopolitical and logistical risks. The planned link through Djibouti, including the Damerjog liquid bulk terminal now coming online, could provide a crucial outlet for crude shipments.

Authorities also aim to expand dry ports, logistics hubs and multimodal corridors tied to the White Nile to facilitate trade in non-oil goods, lower transport costs and spur ancillary industries such as trucking and port services.

While the government is pushing to diversify the economy, insecurity from armed groups, regional conflicts and oil price volatility continue to challenge financing and execution of logistics projects.