Africa-Press – South-Sudan. South Sudan and Britain have expressed concern over the ongoing war in Sudan, warning that the violence across the border may send strong shock waves to the economy.
“(Britain) expressed some worries about the spiralling war in neighbouring Sudan and its consequences on the economy of South Sudan,” Guy Murray Warrington, British Ambassador to South Sudan, said.
Britain released monetary policy and a financial intelligence unit that would serve as shock absorbers for the economy.
South Sudan’s economy is currently grappling with high inflation as the local currency, the pound, takes a tumble against the dollar.
Central Bank Governor Johnny Ohisa remained upbeat that a lasting solution will be found even as commodity prices shoot beyond reach for ordinary citizens.
“We have been thinking about how to come out of this situation, and what possible solutions or options are available in terms of building an oil infrastructure as a long-term measure,” Ohisa said.
South Sudan transports crude oil to the international market through Sudan’s oil pipelines. However, there had been growing concerns that the ongoing war in Sudan could temper the smooth flow of crude oil if the situation worsened.
On Wednesday, Sudan’s National Army walked out of Jeddah. Talks were being championed by Sudi Arabia and the United States between the warring parties: Abdal Fattah al-Burhan and Mohammed Dagalo, the leader of Rapid Support Forces (RSF).
South Sudan’s economy is heavily dependent on oil revenue. The country produces 169,140 barrels of crude oil per day.
Prof Akima Ajieth, an economist, warned that Upper Nile and the Western Bahrel-Ghazal States, which depend majorly on the intra-border trade between South Sudan and Sudan, might face economic ruin due to interruptions in supplies due to the ongoing war.
“If the conflict in Sudan is not addressed as soon as possible, South Sudan will continue to suffer economically because we depend on importing food commodities from Sudan,” Ajieth warned.
Source: The City Review
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