Government to control high inflation by diversifying economy, says expert

[Juba, South Sudan] A South Sudanese economics expert has cautioned the Government of South Sudan on how to control inflation by diversifying its economy and to pave way for much-needed economic recovery.

In a statement released after a meeting with government finance institutions, Dr. Kenyi Spencer, economics expert said, that the economic outlook of South Sudan is very good if only the available resources like honey, timber and clay are utilized for economic benefits.

“There is a lot of honey all over the place. We could put that honey in a central place, process it and open a niche market for it. Even if we only sell it to one or two countries in Europe, that can bring in something. If we are here waiting for the oil to give us solace then forget it. The only thing is to let us use the environment which is relatively safe and peaceful to start producing something”, said Dr. Spencer.

Meanwhile, traders in Juba have rejected the Piaster, a coin currency which was expected to go into circulation as released by Central Bank and Ministry of Finance.

Dr. Kenyi Spencer explained why the coins are not a viable legal tender for South Sudan, saying, “As long as there are no commodities that can absorb coins, then the coins cannot make any sense in the business because with the imported materials…. Normally imported materials are a little more expensive than the locally produced materials. Simply because we don’t have any local produce, the coins are simply redundant.” 

Dr. Kenya emphasized that prices are high in the market [South Sudan] because the entire food stocks in the South Sudan and other essentials commodities are imported, which has raised the exchange rate of hard currency. Lack of exchange rate control by Central Bank has make inflation sky-rocket. It is government role to control and manage this economic crisis and that is where peace can be realized.

[TCT]