Mogae urges formation of unity government to prevent currency from weakening
Chairman of the Joint Monitoring and Evaluation Commission (JMEC) Festus Mogae says that the establishment of a power-sharing government in South Sudan will help prevent economic “ruin”, calling for acceleration of implementation of the peace agreement.
Mogae, who is the former president of Botswana and former governor of the central bank of Botswana from 1980-1982, pointed out that the value of the South Sudanese pound dropped significantly since last month when the government and opposition failed to meet a deadline for forming a transitional government.
In prepared remarks for a meeting of JMEC in Juba today, Mogae stated, “When I left South Sudan in January, the South Sudanese pound was under 20 to the dollar. Today, I am told, it is close to 30.”
“As a former central bank governor, as a former official at the IMF, I know how difficult it is for the economy to be managed in unstable times. But I plead with you to avoid ruin: form the transitional government of national unity without further delay, restore stability, repair the damage that has been done before it is too late, so that urgent economic assistance can become available,” he said.
The Botswana president added that humanitarian efforts were also needed in addition to political efforts to form the new government. “Of course, sound macroeconomic management in itself will not address South Sudan’s humanitarian crisis. I am staggered that things have been allowed to get this bad, and I continue to urge you, the leaders of South Sudan, to do whatever you can to ensure the humanitarian effort is successful.”
“I was told this morning that one of the ceasefire monitoring teams, which recently visited Mundri, found people there are starving to death. I have read the news of further displacement from Equatoria to Uganda and DR Congo with dismay,” he said.
Mogae has returned recently from Addis Ababa where he participated in a summit of the African Union and also briefed the Council of Ministers of the East African regional bloc IGAD. As chairman of JMEC, Mogae is tasked with monitoring implementation of South Sudan's peace deal signed in August 2015. He has expressed disappointment at the slow pace of implementation.
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