South Sudan Sees Uptick in Economy
The economy of South Sudan is steadily improving due, in part, to the September 2018 peace deal, which is bolstering economic growth.
“Since the signing of the peace agreement at least there is improvement, there has never been major violations of the ceasefire and we are hopeful that the economy is improving and by next year’s budget I think we are going to address the issue of capital (development),” Finance Minister Salvatore Garang Mabiordit said last week.
The disruption in oil production in 2013 has hindered the country’s fiscal budget, however, the International Monetary Fund predicts that South Sudan’s gross domestic product is expected to increase 8.1 percent in 2019/20 and 6.6 percent in 2020/2021 from 3.4 percent in 2018/19.
The 2019/20 fiscal budget, estimated at $1.6 billion, was passed by lawmakers on August 21, 2019.
The country’s economy is expected to see a further economic boost next year, when the 2012 Transitional Financial Arrangement – which stipulates that South Sudan must pay Sudan $562.1 million – comes to an end, with government estimating that it will be able to save about $400 million after the cessation of the agreement.
Minister Mabiordit also noted that government has yet to compensate civil servants who have not received salaries since December 2013, adding that the resumption of salary payments is expected in May 2020, after all outstanding domestic payments and debts owed to foreign missions abroad have been settled.
“I think the capital injection should start by next year if we continue with this sustainability of the peace,” said Garang.
President Salva Kiir, meanwhile, has started to re-open certain missions that were shut down because rent and operation costs were not met.