Categories: Business

South Sudan Economic Collapse Looms as Upper Nile Oilfields are Running Dry

JUBA – South Sudan, a soon to be a land of no dollar, is facing a lot of economic hardship. The news of the dollar shortage has filled the air from Juba to the outside world. The evidences in this economic failure were recently disclosed at the meeting by the Minister of Finance designate that the government is running low in Forex. In this, the heat of economic failure is being felt by all the institutions including the important organ such has military operation. Various reliable sources in Juba are claiming day by day that the decreases in dollar fueled the rising cost of commodities. Now, the exchange rate of dollar for pound goes up by about 20% which mean $100US is exchanged with SSP 2,000. Things like gasoline, flour, sugar; natural/spring battle Water Company will soon close the operation because there are no merchandises due to this hard currency shortage.

A reliable source informed the newspaper that it will never take Juba a month or two to go in rampage and what I think will happen first is a mass up rise. People are going hungry, cars are parked on streets without gasoline, and shops are empty and have no commodities everywhere across the city. Foreign traders including Ugandans that constitute the large portion in South Sudan are withdrawing day by day. A strategic rescue mission for this economic failure is needed, and it is now that it should happen, said Thon Ajiith, a frustrated resident in Juba that is seeking a quick fix to the soon to be an economic collapse. Another resident who requested not to be named for fear of repercussion said that the current economic downturn hurts significantly. Even the soldiers at the front line in Upper Nile are not going to sustain the operation. Now, with the capture of Malakal, the oil hub city, things are beginning to whine down differently. What will follow now is a political disintegration. With Kiir coming to hot debate with his cabinets and military generals including the King of the City (Paul Malong), things are turning ugly every day.

It is not the command council that fate up, the whole city residents fated up too. Think about how strong the Pound used to be against the Dollar; think about a city being called the breadbasket of the world in term of getting rich quick; think about the fabrication of lies in a recent past. These accumulated themselves to what is now taking place in Juba and South Sudan as a whole. There is no question about regime change because it is eminent. President Kiir, whether he like it or not, will never avoid it. Soon this oil well will run dry because no one will operate while the risk of attacking them are getting stronger from the rebel side every day, said Garchany Wol, a DG in one of a government institution in Juba who closely work with oil companies.

The violence claimed hundreds of thousands, and displaced 1.9 million people.


Philip Gual: An Upper Nile State correspondent for The Upper Nile Times. He currently resides in Malakal, Upper Nile State.