Seeking Sustainable Solutions: Cutting the Head is not the Solution to South Sudan’s Inflation Headache

Juba, South Sudan – As South Sudan faces mounting inflationary pressures, the business community is challenging the notion that “cutting the head” is the solution to economic woes. Instead, they advocate for a thoughtful and comprehensive response to the crisis, stressing the need for sustainable solutions beyond immediate personnel changes.

Ayii Duang Ayii, the chairperson of the South Sudan Business Community, expressed concerns about the finance minister and the Central Bank Governor’s ability to effectively navigate the surging inflation. The fluctuating exchange rate, particularly against the U.S. dollar, poses a significant threat to businesses and the stability of employment.

“The challenges of controlling the dollar exchange rate persist, and we must move beyond a simplistic ‘cutting the head’ approach,” warned Ayii. “Immediate personnel changes alone will not address the deep-seated issues our economy faces. A more holistic strategy is urgently required.”

In August 2022, Dier Tong Ngor, a business administration graduate from the University of Khartoum, assumed the minister of finance and planning position. His appointment aimed to stabilize the economy when the exchange rate stood below SSP 600 per dollar. However, over the past six months, the local currency has experienced a sharp depreciation, with its value plummeting by nearly 50% since Ngor’s appointment.

“As a leader within the business community, I call upon President Salva Kiir to consider alternative paths beyond immediate personnel changes,” urged Ayii. “To address the current situation effectively, we need a comprehensive approach that tackles the root causes of inflation.”

Johnny Ohisa, appointed as the Central Bank Governor alongside Ngor, also faces scrutiny as economic challenges persist.

Recognizing the urgency of the situation, the South Sudan Business Community emphasizes the importance of a measured and nuanced response. Rather than solely focusing on personnel changes, Ayii Duang Ayii encourages President Salva Kiir to explore sustainable measures that address the underlying factors driving inflation.

Addressing South Sudan’s inflation crisis demands a collective effort involving collaboration between government authorities, the business community, and other stakeholders. The complexities of the economic landscape require thoughtful decision-making and the implementation of effective policies to stabilize prices and foster long-term economic stability.

In striving for a prosperous future, South Sudan must reflect on the adage that “cutting the head is not the solution to headaches,” urging stakeholders to seek comprehensive solutions that tackle the systemic issues at hand. The South Sudan Business Community stands ready to engage in constructive dialogue and collaborate towards sustainable economic progress.