South Sudan navigates challenging economic conditions
Source: CNBC News
South Sudan is navigating a complex landscape of economic challenges, including climate impact, war, debt distress, and poverty, with a focus on meeting IMF benchmarks and diversifying the economy.
BoSS Governor Hon. Dr. James Alic Garang highlighted South Sudan’s progress in securing greater representation within the IMF, along with efforts to stabilize the macroeconomy, attract foreign investment, and prioritize sectors like agriculture for growth.
BoSS Governor Hon. Dr. James Alic
The governor touched on policy reforms, addressing vulnerabilities in the financial sector, and advocating for support in transitioning to a green economy amidst climate change were key highlights of the discussion, underscoring the importance of international cooperation.
South Sudan, faces multitude of challenges ranging from climate impact to war in the neighbouring Sudan, debt distress, drop in exports, extensions with the International Monetary Fund (IMF), and millions in multi-dimensional poverty, is strategizing on ways to tackle these issues.
In a recent interview with CNBC Africa, Hon. Dr. James Alic Garang, BoSS’ Governor, shed light on the country’s approach to overcoming these obstacles. During the IMF World Bank meetings in Washington, the governor highlighted the progress made in securing a third share for Africa within the IMF, signalling a step towards greater representation in global financial institutions.
While acknowledging the resilience of growth in sub-Saharan Africa and the decline in inflation, he emphasized the ongoing efforts to meet IMF benchmarks, particularly in oil transparency and governance. South Sudan’s engagement with the IMF has shown promise, with satisfactory performance reviews and plans for structured programs to stabilize the macroeconomy and attract foreign investment.
The country is diversifying its economy by prioritizing agriculture and exploring investment opportunities in sectors like fishing, timber, mineral exploration, and agriculture, aiming to enhance economic growth. Governor James Alic also discussed the importance of policy reforms to boost productivity, attract capital, and address green economy and digitalization challenges.
The conversation extended to global financial issues, with a focus on peacebuilding, debt sustainability, monetary policy communication, and the need to address vulnerabilities in the financial sector. Climate change emerged as a pivotal topic, with African nations advocating for more support from developed countries to transition towards a green economy.
Despite the challenges posed by climate impact, South Sudan is committed to aligning with global efforts to combat money laundering and terror financing through collaboration with international bodies. As discussions continue on sustainable development and global financial stability, South Sudan remains hopeful of a path forward that prioritizes economic resilience, policy reforms, and international cooperation.