Economist says low productivity hindering economic growth.

By Awan Achiek

South Sudan’s low economic productivity is preventing the country from achieving positive economic growth, according to economist Abraham Matoc.

Matoc who is also the Vice Chancellor of Dr. John Garang Memorial University stressed the need to diversify the economic sector in order to reduce high dependency on imports.

“Our market hoards goods because goods are scarce and the economy is not productive,” Matoc told The Dawn on Thursday.

He said the country has potential to achieve rapid economic growth if the government prioritizes investment in agriculture.

“The people are not investing in agriculture so that there is enough supply that can meet demand. People are depending on imported food, even those goods that are in the market some of them are outdated and yet they keep the prices up,” Matoc said.

He said businesses are struggling because banks don’t give them loans to expand their trade.

“Some people are hoarding money and even businesses in the market are not thriving, they are not even getting loans from the banks and the banks are not creating credit so that they lend,” Matoc said.

South Sudan depends significantly on essential commodities imported from neighboring Kenya, Sudan and Uganda.

“There is no reason to bring in vegetables and fruits from Uganda meanwhile we have plenty. Some fruits are rotting because there are no people even eating them if you go to Western Equatoria,” Matoc said.

South Sudan’s economy is struggling amid high inflation due to years of conflict and global shocks.

The local pound is exchanging at around 1400 with the U.S dollar making it the highest exchange rate since independence of South Sudan in 2011.