High inflation volatility can harm economic growth through reducing consumers’ purchasing power. This causes uncertainty, leading to higher interest rates in extreme cases. It also leads to a breakdown in value of a currency as it happens in some other countries, which is why the situation in South Sudan is ongoing.

This comes from the economic policy failure that transpires when the policy makers do not achieve quantified objectives as officials wished in the country. Also, the government has not led a multi-sector strategy to arrest the economic situation.

There are little or no direct foreign investments in the country that would pump billions of dollars into the economy. And this should be the priority for the government to attract more foreign investments in the country’s economy. However, there is a need first for the government to create an environment that builds investors’ confidence, legally, politically, and security wise.

The South Sudan system of generating income or non-oil revenues since independence was not well structured as well as given priority. There was a lot of aid money and oil was smoothly flowing, but nobody headlined an effort to nurture the non-oil revenues sector. However, mismanagement also made us not realize the outcome of both the oil money and donors’ aid.

This situation of inflation is due to lack of enough hard currency in the reserve as well as in the hands of traders. The lack of enough hard currency supply made it hard for the local pounds to be strong because there is not enough inflow of the hard currency into the country that comes with investments.

As the country got its independent in 2011, up to now good infrastructures in terms of roads connectivity, aviation system, water transport, and communication technology are not standardized.

Government should exert more effort to have what it takes in order to fix the economic situation in the country, otherwise the poor citizens are already in a dilemma.

 God Bless South Sudan

Be right there!