By Sabri Dibaco
Political and policy analyst Boboyo James Edwan has warned about South Sudan’s worsening depreciation of the South Sudanese pound against the U.S. dollar.
He said the devaluation is intensifying the country’s economic crisis, driving up the cost of living and placing millions of citizens under increasing financial pressure.
Speaking in a public statement, Edwan, who is the Chief Executive Officer of the Institute of Social Policy Research, said the country’s economic challenges extend beyond exchange rate fluctuations and stem from long-standing structural weaknesses that require urgent government action.
“The economic difficulties South Sudan is facing today are not caused by the exchange rate alone, but also as a result of several challenging factors that are happening at the same time,” Boboyo said
According to Boboyo, South Sudan’s heavy dependence on imported food, fuel, medicine, construction materials, and consumer goods means that every depreciation of the local currency immediately translates into higher prices for consumers.
“South Sudan imports a large share of its food, fuel, medicine, construction materials, and consumer goods from outside. As the South Sudanese pound loses its value, importers need more local currency to buy the same amount of dollars, and those higher costs are passed on to consumers,” Boboyo explained.
The analyst identified several factors contributing to the country’s economic difficulties, including overreliance on oil revenues, limited domestic production, shortages of foreign currency, rising inflation, political and security instability, and weak infrastructure.
He cited recent assessments by international financial institutions, saying poverty has risen dramatically in recent years.
“Our poverty rate has gone from 48 per cent to 92 per cent in recent years, referring to assessments by the World Bank and the International Monetary Fund. Boboyo said
Despite the current challenges, Edwan argued that South Sudan possesses significant economic potential due to its natural resources, fertile agricultural land, abundant water resources and youthful population.
“I don’t think the future is predetermined. South Sudan has significant economic potential because it possesses large natural resources, vast fertile agricultural land and abundant water resources,” Boboyo said.
He added that agriculture, fisheries and regional trade could become major drivers of economic growth if supported by sound governance and investment.
Edwan warned, however, that these opportunities would only materialise if the government addressed governance and economic management shortcomings.
The policy analyst proposed several reforms, including diversifying the economy beyond oil, strengthening public financial management, improving transparency in oil revenue collection, maintaining monetary discipline, enhancing the independence of the Bank of South Sudan, investing in infrastructure, supporting private sector development and broadening the country’s non-oil revenue base.
He also emphasised that political stability remains essential for attracting both domestic and foreign investment.
“Stable environments attract investors. Better roads, electricity and telecommunications reduce business costs and increase productivity,” Boboyo said.
Drawing lessons from countries such as Rwanda and Ethiopia, Edwan said sustained institutional reforms and investment could transform South Sudan’s economy over time.
“In short, I would describe South Sudan’s outlook as challenging but not hopeless. The country’s natural resources provide a foundation for growth, but long-term prosperity will depend much more on effective institutions, economic diversification and sustained policy reforms than on oil alone,” he concluded.
South Sudan has experienced prolonged economic difficulties in recent years, largely driven by disruptions in oil production, depreciation of the South Sudanese Pound, high inflation and declining purchasing power.
The country remains heavily dependent on oil exports, which account for the majority of government revenue and foreign exchange earnings, making the economy highly vulnerable to fluctuations in global oil prices and production interruptions.
Limited domestic manufacturing and agricultural production have forced South Sudan to rely heavily on imported goods, exposing consumers to rising prices whenever the local currency weakens against the U.S. dollar.
Economic challenges have also been compounded by insecurity, inadequate infrastructure, shortages of foreign currency and governance concerns.