South Sudan's English Daily Newspaper
"We Dare where others fear"
By Awan Achiek
The economy contracted by 0.4 percent in the year of 2022 to 2023 compared to 2.9 percent growth in 2021/22, said a new report of the African Development Bank Group (AFDB).
The annual report dubbed “South Sudan Country Focus Report 2024” conducted between March and July 2024, details the macroeconomic performance of the country.
David Chan Thiang, Macro-Economist Consultant with the African Development Bank Group said the economy experienced stagnation this year due to disruption of oil production.
Chan said the economy’s poor performance was due to several economic challenges resulting from conflict in Sudan and flooding.
“The conflict in Sudan has increased the cost of oil production and aggravated the humanitarian situation, considering that South Sudan relies on Sudan’s oil pipeline. That is so critical for our analysis. Then also the conflict in Sudan has heightened the pressure on South Sudan macroeconomic indicators,” Chan told The Dawn in an interview.
He disclosed that the real Gross Domestic Product (GDP) is projected to contract by 5% in 2023-2024, owing to the reduction of oil production.
Chan said that the economy is expected to recover in 2024-2025 by 1% in anticipation of oil production resuming to previous level before the conflict in Sudan.
Samuel Yanga Mikaya, First Deputy Governor of the Central Bank, said the report offers an all-inclusive analysis of the economic landscape and provides invaluable insights into the path forward.
“We have witnessed today a diversely reached exchange of ideas and perspectives on the critical theme of driving Africa’s structural transformation, the reform of the global financial architecture,” Yanga said.
He underscored the importance of the report to South Sudan as the country strives to build a resilient and inclusive economy that is people-centered and sustainable for future generations.
“The report’s findings highlight the vast potential of our nation with plentiful natural resources, a young and dynamic population, and a growing private sector in need. South Sudan is poised to embark on a transformative journey. However, we also recognize the challenges that lie ahead of us,” Yanga said.
Yanga attributed the poor performance of the economy to low production, infrastructure deficit, lack of reform of the international finance architecture, and lack of people-driven economic growth.
“The recommendations outlined in the report provide a clear roadmap for addressing these challenges. We celebrate the African Development Bank Group for its continuous support in areas such as infrastructure development, financial sector development, and capacity development or capacity building,” he said.
South Sudan’s economy has been under pressure in recent years with crude oil export revenue having dwindled since 2013.
The economic outlook has been worsened due to disruption of crude oil export via Port Sudan amid ongoing civil war in neighboring Sudan which erupted on 14 April 2023.
The South Sudan Pound (SSP) has continued to lose value against the U.S dollar resulting in high inflation in the market.
