South Sudan Faces Universal Poverty by 2025, Warns World Bank

The World Bank reports that South Sudan is projected to face universal poverty in 2025 due to economic challenges including a decline in oil production, high inflation of 139 percent, and the impacts of external shocks. The rate of extreme deprivation has dramatically increased, necessitating urgent reforms for recovery and stability.

According to a recent report from the World Bank, South Sudan is projected to enter a state of universal poverty by 2025. This alarming forecast is attributed to multiple adverse factors, including decreased oil production and various external shocks. Currently, it is estimated that 76 percent of the South Sudanese population were living below the national poverty line in 2022, reflecting a significant increase since 2015.

Charles Undeland, the World Bank Group country manager for South Sudan, presented the report in Juba, highlighting the severe economic decline caused by disruptions in oil production stemming from ongoing conflict in neighboring Sudan, the impact of COVID-19, and repercussions from the conflict in Ukraine. He remarked, “Inflation is very high, reaching 139 percent in August 2024, which, of course, is eroding the purchasing power of all South Sudanese.”

The report reveals that extreme deprivation—indicating the percentage of households unable to afford essential food items—rose drastically, climbing from 70 percent in 2022 to 92 percent in 2024. Undeland emphasized that the economic outlook for South Sudan significantly depends on the establishment of lasting peace and stability, necessitating the complete implementation of the 2018 revitalized peace agreement.

Marial Dongrin Ater, South Sudan’s Minister of Finance and Planning, spoke on the governmental reforms initiated since signing the peace agreement, aimed at enhancing macroeconomic conditions and public financial management. He noted, “Recognising the vulnerability due to our heavy reliance on oil revenues, we have taken concrete steps to broaden our economic base,” which include support for agriculture, trade facilitation, and infrastructure investment as outlined in the fiscal year 2024/2025 budget.

The World Bank’s report reveals a critical situation in South Sudan, forecasting universal poverty by 2025 driven by numerous economic challenges. The government’s reforms and efforts to diversify the economy are essential in mitigating these challenges, emphasizing the need for peace and stability. Without these interventions, the prospects for overcoming poverty remain bleak.

Original Source: www.lokmattimes.com