2024-11-18 23:00:00
South Sudan has one of the highest inflation rates in the world: 55% in one year, according to the International Monetary Fund (IMF). This is the consequence of the deep economic crisis experienced by this country ravaged by climate change and instability, and which imports almost everything it consumes. Its only source of foreign exchange comes from oil exports, but since March this year the pipeline has been at a standstill. Despite announcements of an imminent resumption of exports, the situation highlights the need for diversification of the economy.
From our correspondent in Juba,
« Food is expensive, everything is overpriced, many people are hungry ! What are we going to do? », worries Sarah Alphonse. In Souk Libya, one of the markets in the South Sudanese capital, this frail 37-year-old woman has just bought cowpea leaves to cook with peanut paste. “ It’s super expensive! There are enough for 8 000 pounds, whereas before, all this only cost 500 pounds!, assures the mother of four children. Everything is expensive, flour is expensive, people can’t take it anymore, we are sick, we have no money to take care of ourselves. We wonder what the government is doing? »
The South Sudanese pound has lost four times its value against the dollar. Consequence: the price of basic necessities soars. The government announced in September the sale of food products at subsidized prices, and the Central Bank injected dollars into the currency market. But like many, Rose Poni Eluzai, another customer at the Souk Libya market, has not observed any improvement. “ I have not heard of these measures. It’s true that the dollar has become cheaper. The exchange rate is more favorable, but prices have remained the same on the market. Nothing has changed, she insists. And here we have not received any government subsidized food products to help people. »
« Restarting the pipeline is only a short-term solution »
More than 90% of the country’s own revenues depend on oil exports, which are done via two pipelines that transport South Sudanese crude to Port Sudan, on the Red Sea. However, since March this year, the pipeline carrying 70 % of oil stopped because of the war raging in Sudan.
If the Ministry of Oil has announced the imminent resumption of exports, the president of the Central Equatoria State Chamber of Commerce, Robert Pitia, also observes the limits of the measures taken to control inflation. For him, moreover, even the resumption of oil exports will not be enough to get the country out of the crisis. “ Restarting the pipeline is only a short-term solution. To lower food prices, the government must develop agricultural production, and create an enabling environment for foreign investors to develop massive agricultural production projects. », analyzes Robert Pitia.
A diversification of the economy is all the more desirable given the uncertainty surrounding the resumption of oil exports, as Daniel Akech Thiong of the International Crisis Group (ICG) points out: “ If the conflicting parties in Sudan do not reach a ceasefire in the areas along the pipeline route, the scenario that led to the shutdown of the pipeline risks repeating itself. » The drop in the price of oil and sluggish global demand also work to the disadvantage of South Sudanese public finances, more than 90% dependent on black gold.
1732013562
#South #Sudan #suspension #oil #exports #undermines #economy #sends #prices #skyrocketing
How can the government effectively address the economic challenges and improve the living conditions for people in South Sudan?
**Interview with Sarah Alphonse: A Voice from South Sudan Amidst Economic Crisis**
**Editor:** Thank you for joining us today, Sarah. You’ve been living in Juba during this challenging economic period. Can you share your thoughts on the current state of inflation and its impact on daily life?
**Sarah Alphonse:** Thank you for having me. It’s really hard here. The inflation rate is devastating. In just one year, we’ve seen prices soar by 55%. This week, I spent 8,000 pounds on cowpea leaves and peanut paste, something that used to cost me just 500 pounds before. Many families, including mine, are struggling to put food on the table.
**Editor:** That sounds incredibly tough. How are you and your community coping with these rising costs?
**Sarah Alphonse:** Coping is very difficult. We’re often hungry, and many of us are worried about how we’re going to feed our children. Everyone is asking, “What is the government doing?” There have been announcements about subsidized food products, but on the ground, we see no real change. People are waiting for help that isn’t arriving.
**Editor:** You mentioned the government’s measures to stabilize the currency and control prices. Have you noticed any improvements, despite these initiatives?
**Sarah Alphonse:** I haven’t seen any improvements. People talk about the central bank injecting dollars into the market, and I’ve heard the dollar exchange rate is more favorable now, but prices remain high. The markets feel the same. Families are anxious and still unable to afford basic necessities.
**Editor:** With South Sudan’s heavy reliance on oil exports and the pipeline still at a standstill, what do you think needs to happen for the economy to recover?
**Sarah Alphonse:** We need to diversify our economy. Right now, we rely almost entirely on oil, and when that fails or is interrupted, we feel the pain directly. It’s crucial for the government to invest in agriculture, local industries, and sustainable practices to improve food security. The solutions are there, but we desperately need action.
**Editor:** Thank you, Sarah, for sharing your insights. Your voice is important, and we hope the situation improves for you and your community soon.
**Sarah Alphonse:** Thank you for giving me this opportunity to speak. We need all the support we can get.
