Kuac Media

Researcher Labels Parts of South Sudan's Revenue System "Organized Robbery" in New Economic Analysis

A researcher has described aspects of South Sudan's public revenue collection system as "organized robbery," arguing that informal taxation and coercive resource extraction have become embedded within the country's political economy and state institutions.

In an analysis published on July 7 by The Conversation, researcher Matthew Benson Strohmayer examines how government revenue is generated in South Sudan, contending that beyond formal sources such as taxation, customs duties, oil revenues, foreign assistance, and public borrowing, authorities also rely on what he describes as non-monetary extraction. According to the study, this includes the collection of cattle, grain, labour, and other goods from civilians, often enforced through security personnel, government offices, and checkpoints.

The article quotes a businessman in Malakal who characterized the country's taxation system as "organized robbery." The businessman alleged that some soldiers overcharged traders at checkpoints and retained the excess payments while claiming the collections were necessary to maintain peace and security.

From a public finance perspective, the researcher argues that these informal revenue practices distort fiscal governance by creating parallel systems of taxation outside transparent state budget mechanisms. Economists generally warn that such practices increase transaction costs for businesses, weaken investor confidence, discourage private-sector growth, and reduce overall economic productivity by imposing unpredictable financial burdens on traders and households.

The analysis further suggests that when unofficial taxation becomes institutionalized, it undermines fiscal accountability and reduces the effectiveness of formal revenue administration. Instead of strengthening domestic resource mobilization through transparent tax policies, the study argues that reliance on coercive extraction can erode public trust, encourage informality, and weaken long-term economic development.

Strohmayer concludes that in many parts of South Sudan, predatory revenue collection should not be viewed merely as a failure of governance but as a system that has become integrated into the country's broader political and security structures.