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JUBA - 28 Mar 2024

Government to pay one-month salary arrears as economy bites

South Sudan's Minister of Finance Awow Daniel Chuong (Photo: Radio Tamazuj)
South Sudan's Minister of Finance Awow Daniel Chuong (Photo: Radio Tamazuj)

South Sudan's Ministry of Finance on Thursday announced that it would pay one month’s salary arrears for civil servants and organized forces. Civil servants and soldiers have gone unpaid for nearly six months.

The South Sudanese Pound has hit a new low of 2,000 SSP against the US dollar in black market as concerns mount over scarcity of the US currency and its impact on the country's economy.

This comes after one of South Sudan's critical oil pipelines to international markets, which passes through war-torn Sudan, was damaged last month.

The rupture happened in an area controlled by Sudan's paramilitary Rapid Support Forces, which has been fighting the Sudanese army for power since April last year.

Speaking to reporters at a press conference in Juba, Finance Minister Awow Daniel Chuang said: "We have started working with the central bank to release a salary for one month. And we will work very hard to ensure we get the other salaries."

"The pressure is so high, and we expect that even though we get this small salary, it is not going to do something, but it is better than nothing," he added.

The South Sudanese minister, however, said the Ministry of Finance is working with the National Revenue and the central bank to arrest the economic situation in the country.

"We know that the conflict in Sudan has exacerbated the situation. As all of you know, South Sudan depends on oil by 90 percent or more. The oil is not flowing at some of the fields that are so critical for South Sudan," he said.

According to the minister, the national government plans to diversify its economy to limit its overreliance on oil revenues.

"Within the coming few months, we will see positive results and rest assured that we are working and we understand the hardship the people are going through," he said." The conflict in Sudan may take a long time, so we should not continue to rely on them; we should rely on ourselves.”

The finance minister emphasized the importance of funding and support from regional and international institutions to kick-start some production projects in South Sudan.