South Sudan’s economy is currently under strain, facing one of the highest inflation rates in the world, estimated at 55% over a year according to the International Monetary Fund. This situation is the result of a deep economic crisis exacerbated by climate change and persistent instability in the country. South Sudan imports the majority of what it consumes, and its main source of foreign exchange comes from oil exports. However, since last March, the pipeline has been shut down, significantly impacting the country’s finances.
Prices of basic goods have skyrocketed, making life even more difficult for South Sudanese. Residents of Juba, the capital, are facing a harsh economic reality. Sarah Alphonse, a mother of four, expresses with despair the difficulties faced on a daily basis: food is increasingly expensive, making access to adequate food a real challenge for many families.
The depreciation of the South Sudanese pound against the dollar has had a direct impact on citizens’ purchasing power. Despite the government’s attempts to stabilize the situation by implementing subsidy measures and injecting foreign currency into the market, many people are not seeing any tangible improvement. Rose Poni Eluzai testifies to the lack of positive effects of these actions on the ground, highlighting the gap between official announcements and the reality experienced by the population.
The predominance of oil exports as the main source of income exposes South Sudan to great economic vulnerability. The over-reliance on oil underlines the urgent need to diversify the country’s economy. The announced resumption of oil exports is a short-term solution, but will not be enough to solve structural problems and ensure long-term economic stability.
Robert Pitia, President of the Central Equatoria State Chamber of Commerce, stresses the importance of developing agricultural production and encouraging foreign investment in this sector to mitigate the effects of inflation. Economic diversification is essential to reduce overdependence on oil and strengthen South Sudan’s economic resilience.
As the country seeks solutions to overcome its economic challenges, uncertainty persists over the stability of oil exports. Geopolitical tensions in the region and fluctuations in the global oil market pose additional challenges to an already fragile country. The need for sustainable and diversified economic strategies is more urgent than ever to ensure a more stable and prosperous future for South Sudan and its people.