The World Bank predicts universal poverty in South Sudan by 2025, linked to a decline in oil production and external shocks. In 2022, 76% of the population lived below the poverty line, with inflation reaching 139% in 2024. Economic recovery is contingent on peace, and the government is undertaking reforms to diversify the economy and improve conditions.
On March 14, 2025, the World Bank projected that South Sudan would reach universal poverty by 2025, attributing this dire forecast to declining oil production and external shocks. The report, “South Sudan Economic Monitor,” revealed that in 2022, 76 percent of the population lived below the national poverty line, an increase of seven percentage points since 2015.
Charles Undeland, the World Bank Group country manager for South Sudan, indicated that the worsening poverty is a consequence of prolonged economic decline due to disrupted oil production linked to the ongoing conflict in Sudan, the COVID-19 pandemic, and the indirect repercussions of the Ukraine war. He noted that inflation had surged, reaching 139 percent in August 2024, significantly diminishing the purchasing power of the citizens.
The report highlighted a notable rise in extreme deprivation, defined as households unable to afford basic food. This metric rose from 70 percent in 2022 to 92 percent in 2024. Undeland emphasized that the country’s economic recovery is contingent upon achieving peace and stability through the comprehensive enactment of the revitalized peace agreement established in 2018.
In response, South Sudanese Minister of Finance and Planning, Marial Dongrin Ater, mentioned that the government is implementing reforms aimed at enhancing macroeconomic conditions and public financial management since the peace agreement’s signing. He also addressed the need to diversify the economy, stating that the government had undertaken initiatives to support agriculture, improve trade facilitation, and promote investment in critical infrastructure as outlined in the fiscal budget for 2024/2025.
South Sudan faces a grim economic future, with projections indicating universal poverty by 2025, primarily due to the decline in oil revenues and external factors. The increase in inflation and extreme deprivation underscores the urgency for political stability and economic reform. The government is taking steps to diversify its economy, yet lasting solutions depend on sustained peace and the comprehensive implementation of the peace agreement.
Original Source: www.lokmattimes.com
