By Matik Kueth
An economist has urged the government to reduce import dependency, boost local production, and rebuild confidence in the national currency, as South Sudan faces soaring inflation, a growing liquidity crisis, and a weakening pound.
In an interview with King Media on Monday, Dr. Abraham Maliet, senior economic advisor for the economic cluster, criticized the worsening state of the economy, warning that the country is on the verge of collapse unless immediate and comprehensive reforms are carried out.
He stated that the South Sudanese pound has become “useless” in daily transactions as dollarization increasingly dominates informal markets, and official efforts to control inflation and stabilize the currency continue to fail.
“Our country is working on what we call a free market economy. And free market economy is always a function of goods, supplies, and services. Now, if we don’t supply any goods, then we are only doing what we call demand. There should be an element of you supplying to meet the demand. The dollar became a commodity that is supplied, and then the demand is higher than what we supply. That creates a difference between what you can purchase and what your money value. This has always impacted on especially the low-income families,“ Dr. Maliet said.
His statement comes amid worsening economic conditions that have left low-income households struggling to afford necessities.
Inflation is soaring, the cost of living is surging, and the national currency continues to plummet.
Last week, the Bank of South Sudan (BoSS) announced intentions to print extra currency to alleviate the long-running liquidity problem that has hampered government operations, including delays in paying civil services and military troops.
According to Central Bank Governor Johnny Ohisa Damian, the decision to print additional South Sudanese pounds is intended as an “interim measure” to ease immediate cash shortages.
However, Maliet cautioned that such monetary interventions, without accompanying structural reforms, risk worsening the economic crisis.
“That intervention will not be sustained if you don’t address the reason why people are not taking their money to the bank. We are keeping cash out of the system because the banking system is broken. People have lost trust,” he warned.
Broken economy and a divided market
South Sudan’s economy has been on a downward trajectory since global oil prices fell and domestic conflict disrupted oil production, the country’s primary source of revenue.
In recent weeks, during the opening session of the national parliament, President Salva Kiir acknowledged the severity of the situation.
He noted a sharp decline in oil revenues and described the country’s economic position as one facing “unprecedented challenges.”
The head of state also emphasized that his administration is exploring new fiscal policies, including reducing unnecessary imports and promoting greater cooperation between the Ministry of Finance and the Central Bank; however, these efforts have yet to yield tangible results.
Maliet argues that South Sudan’s economic dilemma stems from its significant reliance on imports and the near-total collapse of domestic manufacturing.
“We are importing fish fillets from Uganda. We are importing meat. Yet, we have rivers full of fish and herds of cattle. Why are we not producing? We need to stop the import of perishable goods and empower our local farmers,” he said.
Inflation crunch
The South Sudanese pound has depreciated by more than 90 percent over the past five years, where it once sufficed for daily essentials like bread and water. Today, ordinary citizens need thousands of pounds to purchase the same items, if available at all.
Fuel prices, once at 100 SSP per liter, have soared as high as 10,000 SSP in some parts of the country. Meanwhile, the prices of basic food items have multiplied many times over.
While the Central Bank’s plan to print more money may provide short-term relief, Dr. Maliet warned that it could worsen the inflationary spiral.
“If you don’t back your money printing with production and reserves, you’re just feeding the inflation monster. Printing alone is not the solution. The solution is production,” he said.
He added that the country’s economy is increasingly divided between a small formal sector dominated by elites and a vast informal economy sustained by subsistence traders.
Rebuilding the economy
Dr. Maliet stressed the urgent need to integrate local economies across states into the national economic framework.
He suggested practical measures such as weekly community markets, improved transportation infrastructure, and targeted investments in region-specific industries.
For long-term economic recovery, the economist emphasized rebuilding public confidence in the pound through a combination of reduced import reliance, increased exports, and a reformed banking system that encourages savings and investment.
He also urged the Ministry of Trade to enact bold policy changes, such as a temporary ban on fresh produce imports, alongside financial subsidies, technical support, and the establishment of demonstration farms to boost domestic agriculture.
“Without stabilizing the pound, investing in production, and reconnecting the economic dots between states and the capital, South Sudan risks deeper inflation, worsening inequality, and complete erosion of monetary trust,” he warned.