The worsening economic conditions in South Sudan can be attributed to a lack of coherent economic planning and policies, according to a prominent South Sudanese economist.
John David, the Executive Director of the Diversity Center for Economic Studies, conveyed his concerns during an interview with Radio Tamazuj on Monday. He emphasized that the recent replacement of former Finance Minister Dier Tong Ngor with Bak Barnaba Chol Bak will likely do little to ameliorate the country’s faltering economy.
David stressed, “The issue is not about appointing a new person every time; the issue is the lack of clear economic policies and planning in the country.” He further emphasized the necessity for the Ministry of Finance to engage all economists within the nation to collaboratively formulate comprehensive economic strategies aimed at revitalizing the economy.
Addressing the grievances of local traders who have expressed difficulty in accessing foreign currency from the Central Bank, David characterized these traders as becoming “hard currency traders” themselves. He pointedly highlighted the alarming phenomenon of hard currency being traded in markets much like everyday commodities such as vegetables and fruits.
Despite the Central Bank’s weekly injection of 8 million US dollars in a bid to bolster the local currency, the South Sudanese Pound (SSP) continues its downward spiral against the US Dollar.
Oil revenues constitute a staggering 98% of the nation’s fiscal budget, rendering South Sudan heavily reliant on this single revenue stream.