South Sudan’s Economic Crisis: A Nation in Crisis
The recent rupture of a crucial oil pipeline has sent fresh pain through the economy of South Sudan, where even the security forces haven’t been paid in nine months. Some soldiers and civil servants are turning to side hustles or abandoning their jobs.
The Root of the Problem
South Sudan’s economy largely depends on the oil it exports via neighboring Sudan. However, 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.
Protests and Side Hustles
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.
Teachers’ Plight
In the capital, Juba, a school deputy head teacher, Maburuk Kuyu Surur, said he has been teaching for 36 years and has never seen a salary delay like this one. That dates back well into the years before South Sudan won its independence from Sudan in 2011.
Government Struggles
The government of President Salva Kiir, who has led South Sudan since independence and is under international pressure to prepare the country for delayed elections, has struggled in the economic crisis. The finance ministry has had six ministers since 2020, with the latest fired in July.
Inflation and Poverty
Inflation in South Sudan is 35% from a year ago, according to the World Bank. Meanwhile, the local currency has plunged against the U.S. dollar on the black market and in the official rate. Prices keep rising every day, and a 50-kilometer bag of maize flour now costs up to five times the price a year ago.
Diversification Efforts
South Sudan hopes to diversify its revenue with tourism and fruit and vegetable farming, among other ideas. However, its civil servants and security forces are showing signs of exhaustion.
Conclusion
The economic crisis in South Sudan is a complex issue that requires immediate attention and action. The government must work to establish a single account for all revenues and crack down on corrupt practices in revenue collection. International partners must also provide support to help the country recover from this crisis.
FAQs
Q: What is the cause of South Sudan’s economic crisis?
A: The rupture of a crucial oil pipeline and the subsequent drop in oil revenues have compounded South Sudan’s long problem of official mismanagement.
Q: How long have security forces not been paid?
A: Nine months.
Q: What are the consequences of the economic crisis?
A: Protests, side hustles, and widespread poverty and displacement.
Q: What are the government’s plans to address the crisis?
A: The government plans to diversify its revenue with tourism and fruit and vegetable farming, among other ideas.
