Sudan conflict affecting South Sudan economy, says Kiir

March 4, 2024 (JUBA) -South Sudan President Salva Kiir has addressed the pressing economic challenges brought on by the conflict in neighbouring Sudan, emphasizing the need for diversification through increased food production.

Speaking for the first time on the significant impact of the Sudanese conflict on South Sudan’s economy, President Kiir underscored its adverse effects, particularly after Sudan’s declaration of force majeure due to operational constraints in conflict-affected regions.

President Kiir highlighted the government’s efforts to mitigate the economic strain by announcing a 400% salary increase for civil servants. However, he acknowledged that the country’s heavy reliance on oil exports, compounded by the depreciation of the South Sudanese pound against major currencies like the US dollar, has further strained the economy, resulting in shortages of essential goods and services.

Addressing the reconstituted transitional national legislative assembly on April 3, 2024, under the theme “Together Building a Better Future Through Parliamentary Consensus,” President Kiir urged stakeholders to resolve disputes democratically and renounce political violence.

In response to the economic challenges, President Kiir advocated for urgent interventions such as revenue diversification and bolstering local production. He directed the Ministry of Agriculture and Food Security to revitalize agricultural initiatives nationwide to enhance food security and reduce dependency on oil revenues.

South Sudan’s economy heavily relies on oil exports facilitated through Sudan. However, disruptions caused by the conflict in Sudan have prompted concerns among experts, government officials, and opposition leaders about the economy’s stability and potential societal repercussions.

President Kiir emphasized the necessity of transitioning from oil dependency to a more sustainable economy centred around food production, viewing it as a vital solution to address the current economic woes and safeguard the country’s future stability.