South Sudan faces economic collapse amid humanitarian crisis

The commodity prices in South Sudan have sharply increased, causing record level inflation rates in the conflict-driven country.

Photo by: AP
Photo by: AP

An estimated 1 million people are on the brink of starvation in South Sudan according to the government and UN agencies.

South Sudan faces a collapsing economy amid conflict and humanitarian crisis as their currency has lost more than ninety percent of its value since December 2015.

The fall of oil prices across the world has hit the country’s economy as it accounts for more than 97 percent of its revenue. The deteriorated economy has led to a considerable rise in the commodity prices, pushing inflation rates to record levels.

"The last crisis is responsible for this economic problem. The rise in the exchange rate of the dollar has also affected our business, " said Charles Luka, businessman.

TRT World’s Fidelis Mbah reports from the capital Juba.

While the government tries to contain rebel attacks, the opposition accuses the government of focusing too much on military.

But Marial Awou, a professor from University of Juba, says the problem is the lack of production, adding the country needs to export more.

"If we can jump start the real sector of the economy, so, if we put the little money into production and then it can stabilise the market and prices can come down," Awou said.

Civil war broke out in oil-producing South Sudan in 2013, after President Salva Kiir sacked Riek Machar from the vice presidency. The conflict ended in a peace pact in 2015 but tensions are still vigilant in the country.

Source: 
TRTWorld and agencies