Government Insists Economy Is Stable As Oil Prices Drop

This article was last updated on April 16, 2022

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The South Sudan Government Spokesman, Michael Makuei Lueth has rubbished a report by the United Nations Coordinator for Humanitarian Affairs, Toby Lanzer that the economy of the country, which is also embroiled in a long overdue political crisis, risk collapse as a result of reduced revenue.

While addressing reporters in Juba on Friday, Michael Makuei also the Information Minister said that theeconomy of South Sudan is not at the brink of collapsing.

“Talking about the collapse of South Sudan economy is the personal opinion of the UN coordinator forhumanitarian affairs, and our economy is stable and strong,” said Lueth. 

The statement came after the fall in crude oil prices was announced last week.

The Minister pointed out that South Sudan as a country can be affected by the alteration in the global oil price but doesn’t mean a collapse of the economy.

“South Sudan is part of the world market and if there has been a fall or a drop in oil prices globally, therefore any country that depends on oil revenue as its source of income can be affected by the fall in oil price,” he said 

Lueth said, “South Sudan economy is stable and steady, there is no question about the collapse of South Sudan economy…the government of South Sudan is fully prepared with all the economic measures of backing up the country’s economy,”

However, the Country’s Head of Finance and Economic Planning Committee in the national parliament Hon. Goc Makuac Mayol earlier said that the Country may face an economic disaster with the drop of oil Prices.

“South Sudan will face severe economic disaster with the drop of oil prices, unless there are plans to generate non-oil revenues to rescue the country from the looming financial drain.”

In a separate development, the recent peace conference about South Sudan mediated by China in Khartoum, South Sudanese authorities raised concerns over the transit cost per barrel.

 Oil is the major export and revenue source for South Sudan and is currently facing a free fall in global prices, currently at less than 45 dollars per barrel.