A World Bank report forecasts universal poverty in South Sudan by 2025, emphasizing drastic increases in poverty levels driven by economic decline, high inflation, and external shocks. The government has begun reforms to diversify the economy but faces challenges from the ongoing instability.
The World Bank has projected that South Sudan will face universal poverty by 2025, attributing this situation to multiple adverse factors, including a decline in oil production and external shocks. According to the “South Sudan Economic Monitor” report, over 76% of the population lived below the national poverty line in 2022, marking a 7-percentage-point increase since 2015.
Charles Undeland, the World Bank Group country manager for South Sudan, indicated that escalating poverty levels stem from prolonged economic decline, caused by disruptions in oil production due to the war in nearby Sudan, the COVID-19 pandemic, and the indirect consequences of the conflict in Ukraine. Moreover, inflation soared to 139% in August 2024, diminishing the purchasing power of the South Sudanese populace, compounded by economic setbacks from recent heavy flooding.
The report highlighted that extreme deprivation, defined as the portion of households unable to afford basic food, rose from 70% in 2022 to 92% in 2024. Undeland emphasized that South Sudan’s economic recovery is contingent upon reinstating peace and stability, underscored by a complete implementation of the 2018 revitalized peace agreement.
Finance Minister Marial Dongrin Ater noted that the government has initiated crucial economic reforms aimed at improving macroeconomic stability and public financial management since the peace agreement was signed. He mentioned efforts to diversify the economy beyond oil, including support for agriculture and facilitating trade, as outlined in the 2024/2025 fiscal year budget.
In summary, the World Bank’s report warns of impending universal poverty in South Sudan by 2025 due to economic instability exacerbated by various factors. The data indicates a significant increase in poverty levels and extreme deprivation, necessitating urgent reforms and restoration of peace to revitalize the economy. South Sudan’s strategic initiatives aim to reduce reliance on oil and strengthen other sectors as part of its recovery plan.
Original Source: www.lokmattimes.com
