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The African Development Bank and South Sudan’s government recently signed a USD 46.2 million agreement to support agricultural production through December 2030. However international frustration from some partners who once cheered South Sudan’s independence has grown.
South Sudan’s economy is in a spin as a result of the recent rupture of the crucial pipeline, which is a lifeline for the impoverished country. With the drop in oil production and consequent reduction in exports, the country is facing a severe economic crunch. Salaries to government officials, including security personnel are not paid in time for several months at a stretch, says the media reports.
South Sudan’s economy largely depends on the oil it exports via neighboring Sudan. But war in Sudan has created widespread chaos, and the pipeline in an area of fighting ruptured in February. The drop in oil revenues has compounded South Sudan’s long problem of official mismanagement. Amidst these developments, there are protests over delayed payment.
Now the already fragile country is seeing protests in the capital over lack of pay, with more expected. And its people are under pressure to make up the gap in salary payments in unexpected ways.
The government of President Salva Kiir, who has led South Sudan since independence, is under international pressure to prepare the country for delayed elections. The finance ministry has had six ministers since 2020, with the latest fired in July.
Inflation in South Sudan is 35% from a year ago. The local currency has plunged against the U.S. dollar on the black market and at the official rate. Even now South Sudan exports oil, at least one-third of its usual exports. But President Salva Kiirr is concerned about the mismanagement as the government must rely more on non-oil revenue like taxes on imported goods.
Some external support continues. The African Development Bank and South Sudan’s government recently signed a US$46.2 million agreement to support agricultural production through December 2030. However international frustration from some partners who once cheered South Sudan’s independence has grown.
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Displacement and poverty in the landlocked country are widespread. The U.N. has said 75% of the population relies on humanitarian aid. South Sudan hopes to diversify its revenue with tourism and fruit and vegetable farming, among other ideas. But its civil servants and security forces are showing signs of exhaustion.
