South Sudan is set to experience universal poverty by 2025, with over 76% of the population below the poverty line as of 2022. Contributing factors include falling oil production, external shocks, and high inflation. A focus on economic reforms and peace implementation is crucial for recovery, according to the World Bank report.
South Sudan is anticipated to face universal poverty in 2025, as reported by the World Bank. The forthcoming report, “South Sudan Economic Monitor,” indicates that over 76 percent of the South Sudanese population lived below the national poverty line in 2022, marking a significant increase from 2015. Factors contributing to this dire circumstance include declining oil production and external shocks.
The World Bank Group’s country manager for South Sudan, Charles Undeland, pointed out that the ongoing conflict in neighboring Sudan, the COVID-19 pandemic, and the repercussions of the Ukraine war have exacerbated the economic decline. With inflation soaring to 139 percent in August 2024, purchasing power among citizens has diminished substantially.
The report also highlighted a troubling increase in extreme deprivation, with households unable to afford basic food necessities rising from 70 percent in 2022 to a staggering 92 percent in 2024. Undeland emphasized that South Sudan’s economic recovery is contingent upon sustainable peace and the effective execution of the 2018 revitalized peace agreement.
Marial Dongrin Ater, South Sudan’s Minister of Finance and Planning, announced that the government is implementing reforms to enhance macroeconomic conditions and public financial management following the peace agreement. He noted initiatives aimed at diversifying the economy beyond oil dependency by investing in agriculture, trade facilitation, and critical infrastructure, as outlined in the 2024/2025 fiscal budget.
The projection of universal poverty in South Sudan by 2025 underscores the urgency of addressing the nation’s socioeconomic challenges. With significant portions of the population already living in poverty and poverty rates projected to worsen, it is critical to restore peace and implement effective economic reforms. The government’s commitment to diversifying its economy beyond oil reliance is essential for sustainable development and recovery.
Original Source: www.lokmattimes.com
