Assessing the Impact of the Oil-for-Infrastructure Scheme on Public Resource Allocation, Transparency, and Corruption: A Case Study of Nile Blend Oil Revenues Since 2019

Abstract

Since 2019, South Sudan has increasingly utilized its Nile Blend oil revenues through an Oil for-Infrastructure (OFI) scheme, aiming to fast-track national reconstruction and development. However, this approach has raised significant concerns about public resource allocation, transparency, and corruption. This paper critically assesses the impact of the OFI scheme on the allocation of oil revenues, governance practices, and corruption risks in South Sudan. Drawing from country-specific reports, global research, and best practice literature, the analysis highlights key challenges and proposes policy recommendations for reform. In the context of a fragile post-conflict environment, the management of oil resources is crucial for sustainable development. The OFI scheme, while intended to address urgent infrastructure needs, has also exposed deeper systemic weaknesses in governance and fiscal management. Understanding the scheme's actual outcomes is essential for designing interventions that can improve public finance effectiveness and ensure that oil wealth benefits the population as intended. This case study not only sheds light on South Sudan's experience but also offers broader lessons for other resource-dependent countries grappling with similar challenges. By evaluating the interplay between resource allocation, transparency, and corruption, it seeks to contribute to the ongoing debate on how best to harness natural resources for inclusive growth and long-term stability.