South Sudan's English Daily Newspaper
"We Dare where others fear"
By Awan Achiek
South Sudanese are enduring a high cost of living, a situation driven by heavy reliance on imported goods from the region, Dr. Marial Dongrin Ater, the Minister of Finance said.
The country relies basically on most of its commodities including agriculture, and other logistics on imports from Uganda, Kenya and Sudan.
“South Sudan’s dependence on imports from the region is a key factor contributing to rising cost of living within the country,” Ater said while presenting the 2024/2025 fiscal year budget estimates before parliament in Juba yesterday.
South Sudan has been grappling with persistent conflict and economic instability.
Its economy heavily relies on oil exports, a sector prone to fluctuations due to global dynamics.
Efforts to stabilize the economy have been thwarted by political volatility and a fragile security environment, including in the region.
Ater said the influx of refugees into the country increased demand for essential food commodities.
“The influx of refugees and returnees due to ongoing conflict in Sudan has increased the demand for essential food commodities while poor harvests, supply chain disruptions, and reduced humanitarian aid from traditional donors have further compounded the situation,” he said.
The government has embarked on importing essential food items in a bid to mitigate rising food prices, according to Ater
“While this situation is difficult for all, the vulnerable segments of our society are particularly worse off. As a result, The government proposes to zero-rate basic assorted food items such as grain products including maize, sorghum, and wheat flour and cooking oil to make them affordable to the citizens,” he said.
Ater revealed that the government is putting in place measures including investment in the agricultural sector to boost food security in a bid to ease inflationary pressure and as well considering boosting foreign exchange reserves to strengthen the value of the South Sudan Pounds against the U.S. dollars.
He disclosed that the economy has displaced commendable resilience with a study growth rate projected at 3 percent this year.
Last fiscal year, the economic growth contracted by 5 percent due to damages on the Dar Blend oil pipeline, Ater said.
