The government of South Sudan as disclosed that travelers, moving outside the country will only be allowed only with cashless than $10,000; that’s about Sh23 million. This directive is in a bid to minimize cash outflows as Juba; the capital city of South Sudan struggles to stabilize its weakened economy.
This was revealed by Michael Makuei Lueth, the Minister of Information and broadcasting on Tuesday stating that the new measure was recommended by the cabinet after findings by the economic cluster committee set up by President Salva Kiir to investigate the mismanagement of non-oil revenue collection.
Salva stated that most people travel with a lot of money which its ripple effect causes inflation. The economy of South-Sudan is reeling and deteriorating amid hyperinflation where the south Sudanese pound is increasingly depreciating against the US dollar over the years especially ever since the signing of the 2018 revitalized peace deal to end over six (6) years of conflict.
In addition, the oil revenue earned by oil-dependent South-Sudan has been reduced due to Covid-19, forcing oil-producing countries to cut production due to a drop in global prices. Also, the Central bank of South-Sudan announced that its foreign reserves were at their lowest point, constraining efforts to achieve economic recovery
In an effort to also stabilize the deteriorating economy of South-Sudan, the country has also scrapped tax exemptions on non-essential goods as they are taking a high amount of revenue from the government.
The Minister revealed the government of South-Sudan has secured a loan of 250 million dollars from the African Export and Import Bank (Afreximbank) to cushion the economy from the effect of the COVID-19 pandemic which has affected many countries across the world.
He further revealed that this loan will be used to cover all the costs and to facilitate the payment of all outstanding debts.
The payment of this loan will be in form of oil and it will be in installment as said by the minister.