South Sudan’s Council of Ministers has approved a $2 billion road construction deal backed by the country’s gold reserves, a move officials described as historic, amid ongoing concerns over corruption and opaque resource-backed infrastructure schemes.
The cabinet approved the deal Friday in a sitting presided over by President Salva Kiir.
Information Minister Ateny Wek Ateny said the government granted a sovereign guarantee to Shamrock Global Group to construct and upgrade more than 1,031 km of strategic roads, including the Juba–Yei–Kaya, Yei–Faraksika–Maridi, Juba–Lobonok–Moli Junction, and Wau–Raja–Boro Medina corridors.
The project would average about $2.3 million per kilometre.
The cabinet endorsed a proposal by Mining Minister Lasuba Ludoru Wongo to use gold as collateral to secure financing, but provided no details on terms, valuation, repayment schedules, or oversight.
Officials did not indicate whether the contract was subject to competitive tendering or independent due diligence.
Shamrock’s official website says it was founded in 2005 by a collective of investors focused on infrastructure, energy, and oil and gas projects in Africa, but provides no information on owners, shareholders, or corporate structure.
Past resource-backed deals
The announcement revived scrutiny of previous high-profile infrastructure financing. In 2021, the government launched an “oil-for-roads” programme, pre-selling future crude oil shipments to fund road works.
Investigations by outlets including Radio Tamazuj and rights groups highlighted limited public disclosure, lack of competitive tendering, and concerns over delivery.
Businessman and former Vice President Bol Mel was linked to major contracts under the oil-backed programme, raising criticism over concentration of state contracts among politically connected firms.
A 2025 report by the United Nations Commission on Human Rights in South Sudan found systemic corruption had diverted billions in oil and non-oil revenues, describing corruption as “not incidental” but an “engine” of the country’s decline.
The panel said more than 90 percent of planned road works under the oil-for-roads programme were never completed, and $1.7 billion in contracts went to firms linked to Bol Mel.
The commission warned that diversion of public funds undermined basic services, despite oil inflows since independence exceeding $25 billion, and issued 54 recommendations to strengthen accountability and public financial management. The government rejected parts of the report, calling its methodology flawed.
Analysts warn of risks
Analysts expressed concern over the new gold-backed deal. Edmund Yakani, executive director of the Community Empowerment for Progress Organization (CEPO), told Radio Tamazuj that the agreement “repeats the mistakes of the previous oil-for-roads scheme and could burden future generations.”
He added: “It seems the current leadership is treating future resources as collateral for today’s projects. This gold deal for roads could become a curse rather than a solution.”
Yakani criticized the decision: “This is a suicidal decision for future generations, made by our current leaders.”
He appealed directly to lawmakers: “Parliament must act to protect future generations. Deals like this should be blocked and we appeal to the president to block it.”
South Sudan, heavily dependent on oil revenues since independence in 2011, consistently ranks low on global corruption perception indices. Government officials described the gold-backed project as a “historic” step to accelerate infrastructure delivery.