South Sudan’s economy is projected to decline 5 per cent in 2024 from 7.0 per cent in 2023, the African Development Bank (AfDB) said in a report released on Wednesday.
The South Sudan Country Focus Report 2024, whose data was collected between March and July 2024, looks at the macroeconomic performance.
Speaking during the launch of the report in Juba, David Chan Thiang, the Macro-Economist Consultant with AfDB, attributed the decline to the disruption of crude oil export via Port Sudan, amid ongoing civil war in the neighboring Sudan.
“The real GDP is projected to contract by 5% in 2023-2024, owing to the reduction of oil production, following the vandalization of the pipeline due to ongoing conflict in Sudan,” said Thiang.
He said a 1% recovery will be recorded by 2024-2025 as oil production, and exports are relatively stabilized.
First Deputy Governor of the Bank of South Sudan, Samuel Yanga Mikaya, said the recommendations outlined in the report provide a clear roadmap for addressing the economic crisis.
“The report’s findings highlight the vast potential of our nation with plentiful natural resources, a young and dynamic population, and a growing private sector in need. South Sudan is poised to embark on a transformative journey.
“However, we also recognize the challenges that lie ahead of us. Not to mention a few, including agricultural sector mainstreaming, the infrastructure deficit, reforming the international financial architecture, and the need for people-driven economic growth,” said Mikaya.
The civil war in neighbouring Sudan has severely disrupted oil exports, depriving South Sudanese coffers of petrodollars, the government’s main source of revenue.
South Sudan’s oil pipeline to international markets, which passes through neighbouring Sudan, was damaged in February this year as a result of fighting between Sudan’s warring parties.