Why the Government Has Failed to Address the Issue of Inflation in South Sudan

The issue of inflation in South Sudan is a multifaceted problem that has persisted despite various government interventions.

This article will delve into the reasons behind the government’s inability to effectively address inflation, examining factors such as political instability, economic mismanagement, reliance on oil revenues, lack of infrastructure, and international influence.

1. Political Instability

South Sudan, the world’s youngest nation, has been marred by political turmoil and conflict since gaining independence in 2011.

The power struggles between different factions within the government have led to civil wars and continuous unrest.

This political instability has severely hampered the government’s ability to implement consistent and effective economic policies, directly affecting its ability to control inflation.

The frequent changes in leadership and government structures have led to inconsistent economic policies, making it challenging to address inflation effectively.

Additionally, the focus on political survival often overshadows the need for economic reform, leading to short-term policies that fail to address the underlying causes of inflation.

2. Economic Mismanagement

The South Sudanese government has struggled with economic mismanagement, which has exacerbated the inflation issue.

There is a lack of transparency and accountability in the management of the country’s finances, leading to widespread corruption and misallocation of resources.

This mismanagement has undermined efforts to stabilize the economy and control inflation.

Furthermore, the government has been criticized for its heavy reliance on monetary financing, where the central bank prints money to fund government deficits.

This practice has led to a rapid increase in the money supply, devaluing the currency and fueling inflation.

3. Reliance on Oil Revenues

South Sudan’s economy is heavily dependent on oil, which accounts for the vast majority of its revenue.

This over-reliance on a single commodity makes the economy extremely vulnerable to oil price fluctuations.

When oil prices drop, the government struggles to fund its budget, often resorting to printing more money, which in turn fuels inflation.

Moreover, the oil sector has not been effectively managed, with allegations of corruption and lack of investment in diversifying the economy.

This over-dependence on oil has hindered the development of other sectors, limiting the government’s ability to create a more stable and diversified economic foundation to combat inflation.

4. Lack of Infrastructure

The lack of infrastructure in South Sudan is a significant barrier to economic stability and growth.

The country’s inadequate transportation networks, limited access to electricity, and underdeveloped agricultural sector hinder economic diversification and growth.

This lack of infrastructure contributes to high costs of goods and services, exacerbating inflationary pressures.

Investment in infrastructure is crucial for economic development and inflation control.

However, the government’s focus on political and military expenditures has left little room for significant investment in infrastructure development.

5. International Influence

International factors also play a role in South Sudan’s inflationary challenges.

The country’s economic policies are often influenced by international donors and institutions, which may not always align with the nation’s long-term interests.

Additionally, the global economic environment, including fluctuations in oil prices and foreign exchange rates, impacts South Sudan’s economy and inflation rates.

The government’s limited capacity to negotiate and navigate these international economic influences further complicates its ability to address inflation effectively.


The government of South Sudan’s failure to solve the issue of inflation is due to a combination of internal and external factors. Political instability, economic mismanagement, reliance on oil revenues, lack of infrastructure, and international influence all contribute to the ongoing inflationary pressures.

For South Sudan to effectively tackle inflation, it is imperative to address these underlying issues, requiring a concerted effort from both the government and the international community to establish stability, diversify the economy, and build a robust economic foundation for the future.

Do you know the reasons behind the current inflationary tendencies? Feel free to share.

Written by Mila Joshua Yona

Pro South Sudanese Blogger, Digital Marketer & Web Designer. I help entrepreneurs scale up their businesses online. You can join my Facebook Group Here or Telegram Group Here

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