Cash shortage crippled South Sudans economy says finance minister

JUBA — South Sudan’s Minister of Finance and Planning, Dr. Marial Dongrin Ater, said on Wednesday the shortage of South Sudanese pounds has crippled the economy, plunging the government into uncertainty.

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.

In his key remarks during the swearing-in of the Central Bank Governor in Juba on Wednesday, Dr. Marial said the government is unable to pay civil servants due to a cash shortage.

“We have the major challenge that you will face is how to address the cash shortage in the economy,” Dr. Marial said.

He said the cash crisis has affected government service delivery and salary payments.

“We have been able to pay now for the past seven months’ salaries without fail, but that money goes in the account without cash. So, getting cash is the biggest problem,” he said.

He disclosed that the ministry has put in place policies to boost economic recovery.

“We have policies in place; we have been working with them to ensure that we have full recovery as soon as possible.”

For his part, Dr. Addis Abab Othow, newly appointed governor of the Central Bank, vowed to ensure timely payment of salaries.

“I am committed to working closely with the minister and the minister of finance and all the stakeholders to ensure that we streamline our efforts and collectively now bring about paying salaries on time,” Othow said.

He pledged to lead the bank in a transparent and accountable manner, expressing his unwavering dedication to ensuring that the mandate of the central bank is maintained.

“We want to leave with you that we will lead with accountability, transparency, and unwavering dedication to ensure that the mandate of the Central Bank is maintained.”

He said his principal mandate is to maintain price stability but also promote sustainable economic growth.

sudanspost.com