Salva Kiir Mayardit, President of the Republic of South Sudan-File Photo/REUTERS/Jok Solomon
By Bida Elly David
Foreign merchants last week demonstrated their commitment of interest to reduce South Sudan’s balance of payment and external borrowings through investment in various fields.
The development transpired during an official meeting between the President of the Republic of South Sudan Salva Kiir and business tycoon from Kingdom of Bahrain of the Gulf region.
South Sudan over the past years up-to date has been battling balance of payment problems through external borrowings from other countries aimed at covering up some gaps which the national income percentage could not grant due to shortage in production. Despite several trials to fill up the gaps, no positive improvement could be witnessed apart from borrowings.
Earlier, South Sudan was rated among other countries with a lump-sum debt against the gross domestic product ratio in Africa. The report showed South Sudan’s balance of payment status with 64.4% totaling to $15,000,000 in 2022.
In statement seen by No.1. Citizen Daily Newspaper from the Presidential Unit, the delegation expressed commitment to quit South Sudan from outstanding borrowings that resulted into continuous balance of payment issues.
“The team showed commitment to reduce South Sudan’s pending external borrowings by consolidating it through investment in various sectors such as the health department as well as others. The team also in their visit discussed many areas through which the country’s economy would be improved’’ the statement read.
In his part, Fawzi Al Aradi, the managing director for Capital Impact said that it was in their mandate to pull South Sudan out of external debits by bringing capital through investment projects.
“Our major aim to South Sudan is to ensure that all external borrowing that brought in balance of payments issues shall come to pass through our plans. We have planned to invest in very many areas such as the health sector, the economic and developmental areas. Our discussions with the President shall help South Sudan experience a better move towards development’’ he said.
At the same note, Fawzi pointed out that the modalities through which the initiative would be carried shall be communicated as soon as possible
“We are yet to decide on the modalities of how the project can be carried. As soon as we finish, the communication shall reach to our partners as agreed upon following the memorandum of understanding’’ he said.
In continuation, President Salva Kiir showed much commitment towards strengthening commercial relations between South Sudan and the Kingdom of Bahrain and both parties through the Ministry of finance have agreed to sign a business Memorandum of Understanding as soon as possible on cooperation after clarifications.