Businesses close as South Sudan’s economic crisis worsens
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Elisabeth Janaina
Jan 24, 2017, 11:40:44 AM1/24/17
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Businesses close as South Sudan’s economic crisis worsens
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January 23, 2017 (JUBA) - Hundreds of small businesses have closed in
South Sudan over the last year due to hyper-inflation and failure by
the local population to earn any meaningful income.
JPEG - 20.6 kb
Women sell food at Konyo Konyo market in South Sudan (Reuters)
Shops, restaurants, lodges and transport businesses owned by
foreigners were affected, citizens say.
One Hassan, a Kenyan-Somali, who owned a shop in Gumbo, a Juba suburb,
has a dozen stocks.
"I am planning to close this shop by the end of this month and go back
to Kenya," said Hassan.
"There were many shops here ran by Kenyans and other foreigners but
they have gone back to their countries because there is no profit here
now," he added.
Nearly all markets goods in Juba and other South Sudanese towns are
imported from neighboring countries and that requires United States
dollars to purchase.
"Right now, the value of SSP [South Sudanese Pound] is not stable. It
keeps changing, losing value against the U.S dollar," said James
Obari, Ugandan trader dealing in food items imports.
Obari, however, said the Ugandan Shillings had strengthened against
the South Sudanese Pounds (SSP), hence frustrating any prospects of
exporting from South Sudan’s southern bordering country.
"In fact, selling my food items within Uganda is now much better than
crossing over to South Sudan. It is waste of time and a financial
loss," he added.
Like Kenyans, several Ugandan businessmen left the country and never
returned, Obari said.
"I don’t want close my shop but I will be left with little choice if
the economic situation does not import," he added.
Since exchange rate for dollar was floated against SSP in 2015, the
local currency has left 80% of its value and inflation stroke 800% in
October. The government promised many items to address the crisis but
little has changed.
Last week, President Salva Kiir fired the Central Bank governor and
his deputy and made changes in the ministry of finance in an effort,
economists said, aimed at making shake up in financial institutions.
Experts, however, called for more action, including independence of
the country’s Central Bank to ensure none interference from
politicians.
"South Sudan needs an institutional reform – independent, accountable
and transparent central bank. Otherwise, recent changes in Central
Bank can be analogistic," economist Garang Atem wrote last week.
Atem said government should not use the Central bank as a tool for
money withdrawn at will, but "as an institution charge to pursue a
long term macroeconomic stability, when used in short-term political
machination, a result is hyperinflation."
(ST)
Comments on the Sudan Tribune website must abide by the following
rules. Contravention of these rules will lead to the user losing their
Sudan Tribune account with immediate effect.
- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments
Due to the unprecedented amount of racist and offensive language on
the site, Sudan Tribune tries to vet all comments on the site.
There is now also a limit of 400 words per comment. If you want to
express yourself in more detail than this allows, please e-mail your
comment as an article to com...@sudantribune.com
Kind regards,
The Sudan Tribune editorial team.
24 January 08:57, by Mayom County Troops
the worse thing is that let South Sudanese , plus other business
foreigners deal to tackle this useless scenario in the country due of
high taxation ,including other financial problem
I urgent all south Sudanese to work hard to alleviate this crisis
by all means .
repondre message
24 January 11:41, by Lokoli
The worse yet to come. Mr Akuma President architect for
masterminding unimaginable pains and suffering on South Sudanese.
Think as a responsible nationalist. Get bold and ask President to step
down now. Neighbors countries ripped off all riches and you cannot
see. What a shame & greedy individual who think about their stomach
only not a country. What a cure! The only weapon, kill the economy!!
Article
Comments (2)
email Email
print Print
pdfSave
separation
increase
decrease
separation
separation
January 23, 2017 (JUBA) - Hundreds of small businesses have closed in
South Sudan over the last year due to hyper-inflation and failure by
the local population to earn any meaningful income.
JPEG - 20.6 kb
Women sell food at Konyo Konyo market in South Sudan (Reuters)
Shops, restaurants, lodges and transport businesses owned by
foreigners were affected, citizens say.
One Hassan, a Kenyan-Somali, who owned a shop in Gumbo, a Juba suburb,
has a dozen stocks.
"I am planning to close this shop by the end of this month and go back
to Kenya," said Hassan.
"There were many shops here ran by Kenyans and other foreigners but
they have gone back to their countries because there is no profit here
now," he added.
Nearly all markets goods in Juba and other South Sudanese towns are
imported from neighboring countries and that requires United States
dollars to purchase.
"Right now, the value of SSP [South Sudanese Pound] is not stable. It
keeps changing, losing value against the U.S dollar," said James
Obari, Ugandan trader dealing in food items imports.
Obari, however, said the Ugandan Shillings had strengthened against
the South Sudanese Pounds (SSP), hence frustrating any prospects of
exporting from South Sudan’s southern bordering country.
"In fact, selling my food items within Uganda is now much better than
crossing over to South Sudan. It is waste of time and a financial
loss," he added.
Like Kenyans, several Ugandan businessmen left the country and never
returned, Obari said.
"I don’t want close my shop but I will be left with little choice if
the economic situation does not import," he added.
Since exchange rate for dollar was floated against SSP in 2015, the
local currency has left 80% of its value and inflation stroke 800% in
October. The government promised many items to address the crisis but
little has changed.
Last week, President Salva Kiir fired the Central Bank governor and
his deputy and made changes in the ministry of finance in an effort,
economists said, aimed at making shake up in financial institutions.
Experts, however, called for more action, including independence of
the country’s Central Bank to ensure none interference from
politicians.
"South Sudan needs an institutional reform – independent, accountable
and transparent central bank. Otherwise, recent changes in Central
Bank can be analogistic," economist Garang Atem wrote last week.
Atem said government should not use the Central bank as a tool for
money withdrawn at will, but "as an institution charge to pursue a
long term macroeconomic stability, when used in short-term political
machination, a result is hyperinflation."
(ST)
Comments on the Sudan Tribune website must abide by the following
rules. Contravention of these rules will lead to the user losing their
Sudan Tribune account with immediate effect.
- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments
Due to the unprecedented amount of racist and offensive language on
the site, Sudan Tribune tries to vet all comments on the site.
There is now also a limit of 400 words per comment. If you want to
express yourself in more detail than this allows, please e-mail your
comment as an article to com...@sudantribune.com
Kind regards,
The Sudan Tribune editorial team.
24 January 08:57, by Mayom County Troops
the worse thing is that let South Sudanese , plus other business
foreigners deal to tackle this useless scenario in the country due of
high taxation ,including other financial problem
I urgent all south Sudanese to work hard to alleviate this crisis
by all means .
repondre message
24 January 11:41, by Lokoli
The worse yet to come. Mr Akuma President architect for
masterminding unimaginable pains and suffering on South Sudanese.
Think as a responsible nationalist. Get bold and ask President to step
down now. Neighbors countries ripped off all riches and you cannot
see. What a shame & greedy individual who think about their stomach
only not a country. What a cure! The only weapon, kill the economy!!
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