South Sudan is undergoing one of the severest economic crises since the independence declaration, as evidenced by currency depreciation leading to hyperinflation and skyrocketing of prices of basic commodities such as food, medicines, and fuel.
The country is teetering on the brink of total economic collapse due to fiscal deficits, current account deficits, a bloated public sector, and the diminishing non-oil revenue collection. The situation has even been made worse by the shutdown of oil production due to the ongoing civil war in Sudan between the government and the paramilitary group, Rapid Support Forces (RSF).
Other factors, such as increased global geopolitical tension, especially an escalation of the conflict in the Middle East, the war in Ukraine, deteriorating regional and internal political stability, and the increased frequency and intensity of adverse weather events, also contributed to the economic crisis in South Sudan.
The Government of South Sudan has been advised to take advantage of the prevailing economic crisis to do things right. This starts with putting the right person at the helm of economic recovery and sustainable management.
One man who has been tested and who has proven beyond reasonable doubt that he has what it takes to manage an economy as complex and unpredictable as the case of South Sudan is none other than Athian Diing Athian.
Athian first served as deputy minister of Finance and Planning before President Salva Kiir later elevated and appointed him minister in September 2020.
During his brief ministerial stint, he steered the economy towards recovery and sustainability. A seasoned economist with a proven track record in the management of the economy and public finance,
Athian has a brilliant academic mind and focuses on what it takes to bring back the economy from the brink of total collapse.
During his short tenure, he was able to maintain a stable exchange rate at an average of $1 to SSP 400— a value that lasted for nearly two years. As soon as he was relieved, the exchange rate went through the roof.
Athian, in addition, was able to restore the relationship between the International Monetary Fund (IMF) and the World Bank. As a result of his effort, South Sudan secured up to $500 million that was used to stabilize the exchange rate as well as pay salaries for civil servants and organized forces and procure basic commodities such as food, medicines, and fuel.
By the time he was replaced, there was only one month’s worth of salary arrears for civil servants. He was able to stabilize prices of basic commodities in the market as a result of a stable exchange rate. By the time he was replaced, Athian had built enough foreign reserves at the Bank of South Sudan.
He also ensured that the accounts of the finance ministry at the Bank of South Sudan had enough money to cover salaries and other government obligations.
With the support from the IMF and the World Bank, the University of Khartoum graduate introduced public financial management reforms aimed at strengthening key oversight institutions, improving budget transparency, and enforcing disciplined budget execution.
His efforts resulted in the establishment of the Public Procurement and Assets Disposal Authority (PPADA), whose core mandate is to assess and review the public procurement of goods and services as well as the disposal of public assets.
With his return to the ministry, PPADA will ensure procurement and disposal of public assets are done in a professional, efficient, effective, and transparent manner.
He worked hand in hand with the international financial institutions, resulting in donor and investor confidence in South Sudan.
This prompted the IMF and the World Bank to send a high-profile delegation to South Sudan to assess the economic situation in the country.
The delegation was also expected to discuss with the leadership of South Sudan ways of funding infrastructural projects in line with international practice.
However, Athian was unfortunately relieved from his position a few days before the planned meeting with senior officials from the IMF and World Bank took place.
Upon his dismissal, the Troika (US, Norway, and UK) issued a statement on January 7, 2022, urging the government to make economic recovery reforms.
“In this regard the Troika stresses the importance of continuing and further strengthening the current reforms, which will demonstrate the Government’s commitment to the reform process and enhance trust with international partners,” read the statement in parts.
This statement was a direct reaction to the removal of Athian from his position as Minister of Finance and Planning.
In June 2023, Kiir entrusted him with yet another key position at the South Sudan Revenue Authority as the commissioner general, where Athian introduced reforms that led to the increase in non-oil revenue collections and remittances to national coffers.
He put in place measures to widen the tax base as well as implement a system to efficiently collect taxes.
So, is Athian Diing Athian the right person at the helm of the Ministry of Finance and Planning?
According to senior officials from the IMF and World Bank, as well as economic advisors, Athian is indeed the right man for the job.
“Athian Diing Athian is the right person to steer South Sudan out of its current economic crisis. We have worked with him,” said an official who requested anonymity.
“We are confident of his knowledge, experience and understanding of complex political, economic and social challenges that have contributed to the deteriorating economic situation in South Sudan as well as the strained relationship between South Sudan, IMF, World Bank and the international community in general.”
Experience and global network
The first-class honors graduate is a highly respected professional in both regional and global economic and financial circles.
He has an extensive network and good working relationship with the IMF and World Bank that can attract foreign direct investment that South Sudan so desperately needs.
He also established a good relationship between South Sudan and the African Development Bank and AFRIXEM Bank, which have provided loans and grants to the government of South Sudan for infrastructural projects as well as the establishment of key public institutions such as the South Sudan Revenue Authority.
Vision
Athian is a visionary, and he understands the current issues that have led to the economic deterioration in the country. He knows that shifting the country towards an export-oriented economy should be the goal to get South Sudan out of the current economic crisis and the best way to deal with current account deficits.
South Sudan literally imports everything, including toothpicks and tissue paper. During his time as Minister of Finance and Planning, Athian reined in on wasteful expenditures by various government ministries and agencies.
Athian, who also holds various graduate degrees from American universities, was so instrumental in advocating for stable monetary policy, which is a key prerequisite to keep macroeconomic stability and confidence in the local currency.
As minister, Athian refused to give in to political pressure to force the central bank to print more money—a move he thought could further lead to inflation and weakening of the South Sudanese pound against major foreign currencies.
In another plausible move, he stopped overdraft financing, which essentially means the Ministry of Finance borrowing from the Bank of South Sudan to cover payments and government spending.
Under his leadership, Athian Diing Athian ensured that South Sudan was not duped into taking up loans from unscrupulous businessmen that were not diligently negotiated and not earmarked for specific projects, be they infrastructural or otherwise.
As a result, he drastically cut down on both domestic and foreign borrowing. He also managed to negotiate with creditors who wanted to take South Sudan to court over unpaid loans.
Currently, South Sudan has been sued by various creditors, including Qatar National Bank, which was just awarded $1 billion against South Sudan.
Conclusion
As earlier stated, Athian is a seasoned economist and public finance guru with a proven track record in the management of the economy and public finance.
He commands respect and recognition from his peers both regionally and internationally. It is for this reason that he succeeded in amending the relationship between South Sudan and the Bretton Woods institutions, namely the IMF and the World Bank.
Athian possesses a vast wealth of technical training, knowledge, and experience that could help steer South Sudan’s economy toward recovery and sustainability. He would achieve remarkable results if the Vice President for Economic Cluster, Benjamin Bol, and the Presidential Envoy on Special Programs, Adut Salva, collaborated to alleviate the suffering of the masses.
The writer, Jerry Wingfield, is a researcher and investigative journalist on local and international economic and political affairs. He can be reached at jerry.wingfield@gmail.com.
The views expressed in ‘opinion’ articles published by Radio Tamazuj are solely those of the writer. The veracity of any claims made is the responsibility of the author, not Radio Tamazuj.