South Sudan urges investors to return to shore up fragile economy

South Sudanese President Salva Kiir on Tuesday urged foreign investors who fled the war-torn nation to return and boost the fragile economy nearing collapse.

"We encourage investors to return to the country, so that we can build the economy together. We must make efforts to make investment environment attractive so as to boost foreign direct investments in the country particularly in the agricultural sector," Kiir told parliament in Juba.

He prioritized tackling the hyperinflation now above 835.7 percent and resumption of oil production in the northern Unity oil field to restore macro-economic stability, hence boosting the fast-dwindling foreign reserves.

"Priority of the government is to reverse the downward spiraling of the economy. We have assembled a new economic team through recent changes in the Bank of South Sudan and Ministry of Finance. This team is working harmoniously to coordinate policy action to put a stop to the free fall of our economy," Kiir revealed.

Oil-rich and yet impoverished South Sudan depends 98 percent on oil export to finance its fiscal budget, but violent conflict since December 2013 reduced oil production from 350,000 barrels a day to less than 130,000.

Kiir said he has instructed the ministry of petroleum to reopen oil fields in former Unity state to increase oil production.

"If these measures are executed with sense of urgency we will be able to recover economically much sooner than expected," he said.

The United Nations on Monday declared famine in parts of the country with some 100,000 South Sudanese already starving and 1 million on the brink of the famine due to continuing conflict and market price failures.

Kiir, who did not mention famine in his speech, ordered for immediate unhindered humanitarian and development assistance to those in need.

The World Food Programme (WFP), Food and Agriculture Organization (FAO) and UN children's fund UNICEF had partly blamed the famine in the northern region of Unity state on hindrances by the security agencies on humanitarian organizations.

"We appeal to our partners to resume development activities in the country and to support the implementation of the peace agreement," the president said.

"The government will ensure that all humanitarian and development organizations have unimpeded access to the needy populations across the country," Kiir added.

He also appealed to the international partners and opposition to be part and parcel of the upcoming national dialogue in March, which the president initiated in December last year.

"I also want to make it absolutely clear to those who question and doubt our intentions, and to our regional and international partners that the national dialogue we have brought out is not a trick, delaying tactic or calculated strategy by the government to consolidate its grip on power," he said.

He added that the ministry of finance had been instructed to provide budget for the dialogue expected to be largely funded by international partners. Endit