Archive for the ‘Economy’ Category


By Garang Atem Ayiik (Gatem), Nairobi, Kenya

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January 18, 2017 (SSB) — This week, H.E President Salva Kiir issued a decree relieving top officials in central bank of South Sudan and appointing a new governor and his deputy. As expected, the President is concerned about hyper-inflation that is causing misery to citizens.

Author of this article believe that strong institutions, manned by strong people, play complementary role in meeting an institutional goals.

Without significant changes to central bank’s operation; so long as a central bank remain as an ATM of executive, so long technical staffs’ capacities are not enhanced, recent changes in central bank can be analogized to “changing monkeys on trees, but leaving the forest intact.”

On central bank governance, economists agreed that a good central bank is built on three pillars – independence, accountability and transparency. Any form of governance adopted by a central bank, has an impact on achieving its main objective of macroeconomic stability.

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By David Matiop Gai, Juba, South Sudan

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January 7, 2017 (SSB) — I saw it difficult to liberate ourselves from the individuals of self-exploitation, stubborn or obstinate willfulness, as in pursuing one’s own wishes, or set free the imprisonments and the bondage in which people of South Sudan are in since the very beginning of CPA in chronic diseases such as corruption, nepotism, tribalism, hatred, jealousy, selfish, envy, deception, war/conflicts, trade slavery, gossips, propaganda, and many others base on the destiny of how people are swallowing themselves on the bases of exploitation. The word “exploitation”, is defined in a similar distinction. It is the action or fact of treating someone unfairly in order to benefit from their work or the action of making use of and benefiting from resources, while the engine operation is like combustion engines are of two general types.

We have liberated ourselves from the bondage or oppression of Arabs from Khartoum, but there are more hard works needed to be done by South Sudanese people in general which are also needed to be champion by a brave man/woman of selfish less life. Dr. John Garang whom I always like to quoted said, “I did not get a man who will distributes resources equally or equitably to people and a gun that shoot by its own”. Dr. John Garang compared South Sudanese people with two impossible things: A man that can distribute resources fairly, a man who can forget about himself or not grabs things for his own benefit, can South Sudan get such people? And a gun that shoot by its own, because men are defined as selfish, and no gun should shoot without human being. John Garang concluded it hardly.

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IMF Staff Completes 2016 Article IV Mission on South Sudan

“South Sudan faces massive economic challenges in the wake of prolonged internal conflict and subdued oil prices. A relapse of violence in July following the formation of the Transitional Government of National Unity three months earlier compounded the crisis which started in December 2013 and challenged the peace process. Real income, adjusted for terms of trade losses, has declined by about 50 percent since 2013 and the number of people in need of humanitarian assistance has risen to unprecedented levels. Inflation has soared to about 500 percent (12 months through October), the exchange rate has depreciated steeply, and foreign exchange reserves are close to exhaustion. According to UN specialized organizations, the conflict has led to nearly two million internally displaced, more than one million refugees in neighboring countries, and about five million food-insecure South Sudanese.”

December 14, 2016 (SSB) —- End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision

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Michael Malaak Mayen, Juba, South Sudan

salary

salary

December 12, 2016 (SSB) — The effectiveness of official intervention in foreign exchange market is a crucial policy issue for South Sudan. The Bank of South Sudan abolished its fixed exchange rate regime due to gross overvaluation of it currency, the South Sudanese Pound. Since the abandoning of the fixed exchange rate regime and the introduction of a manage float in 2015, the Bank of South Sudan introduced the monthly and sometimes quarterly auctioning of foreign exchange. In the new regime, the Bank instructed commercial banks to report their daily exchange rates.

In the face of the underdeveloped interbank foreign exchange market, the weighted average of commercial banks daily rates, enable the Bank of South Sudan to obtain market-based official exchange rate.  The introduction of the auctions was the consequence of the country’s shallow and underdeveloped interbank market for foreign exchange. Intervention in foreign exchange market changes the balance between domestic and foreign currency denominated in the markets, which induces the investors to adjust their portfolio, changing the exchange rate. Furthermore, the information contained in interventions modifies expectations regarding the future spot exchange rate, leading to an immediate adjustment to the current exchange rate.

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By David Mayen Ayarbior, Juba, South Sudan

corruption

From rags to riches: The amazing transition of the telecommunication companies in South Sudan

December 10, 2016 (SSB) — The level of ‘theft’ inflicted upon the people of South Sudan by telecommunication companies is beyond description.  The helpless people have complained time and again against that theft and sought protection, but that complain seemed to have fallen on the deaf ears of those who should protect the people. The only resort left now is for the people to organize a large demonstration and move to the headquarters of Vivacell, Zain and MTN and close them by force. Even though that may be extreme, as it might carry negative consequences for the people themselves, what other options are there?

Just like the V8s (running schools) in South Sudan which have become like donkeys in Mauritania, found in the least developed villages, the country did not need that big number of telecom companies in the first place. In addition to their insatiable appetite for looting the helpless South Sudanese in broad day light, they are the biggest earners of money in the country, least taxed and largest industry responsible for the biggest capital repatriation. “Parasites” is the single word description befitting them.

One can load SSP 500 and for some reasons which can only be defended by Vivacell and MTN, the money will be over in ten minutes, yah minutes, not hours. That is even if you did not talk with anyone. When you go to their offices, someone will arrogantly take your phone and teach you how to switch your “mobile data” on and off, because it incurs money to keep it on.

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South Sudanese perspective of what derailed the journey to economic development

By Paul Logali, Logali House, Juba

The current state of RSS

December 6, 2016 (SSB) — After the government of South Sudan was established in 2006, initiation of rapid economic development programs followed led by the public sector in partnership with the private sector. Part of my assignment was to participate in developing industrial strategies and polices for the ministry of Commerce, Industry and Investment.

To get this done we had to travel to all the previous 10 states to consider the views and perspectives of all the state and non state actors about economic development issues, the roles of the private sector and the challenges they thought should be captured in the formulation of these policies.

We equipped ourselves with working tool kits [questionnaires] that have been tested in other post conflict environments to help us collect the data required. Among these tools were a set of kits designed to examine and inform us about the mental models of our people.

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By Awuol Gabriel Arok, Juba, South Sudan

the-us-dollar

November 29, 2016 (SSB) — Currencies dealers and their associates had put their big mouths deep into the country monetary pot and have gulp down as much as they can and are left with nothing for tomorrow. While they were busy erecting up umbrellas of victimization under the intensive heat of Juba City, our once valuable currency has terribly been soaked under the exchanging hands of the crafty umbrella boys.

After an abuse and exploitation of the country currency by the outlawed money dealers, the currency has disappeared into unknown crack hole through the black money pot of the infamous Currencies dealers. Without being spared by their careless dealing the umbrella boys are becoming the sacrificial lambs of their own blooper.

Though majority of the Umbrella boys have never attended formal education, their practical knowledge on Petr-dollar and how fuel can be converted into dollar have propelled them to change gear of their trade and have shifted their business to Roadside Bottle Petrol Stations along the major roadsides in Juba and other big cities of South Sudan, this illegal fuel dealing has been distressing  the entire population of Juba City, the drivers of public buses and tank water suppliers have aggressively join the club of cheating without sympathy.

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By Gen. Salva Kiir Mayardit, Juba, South Sudan

kiir and garang

Commander John Garang and Commander Salva Kiir in Rumbek, during the war of liberation struggle

November 24, 2016 (SSB) — We have been challenged economically as a nation and you my people may be thinking that the government is not doing anything to counter this. I am glad to inform you that we are working on how to achieve a sustainable economic growth. We are promoting social equity and this will mean giving equal opportunities in all fields to all the citizens of south Sudan in a healthy environment.

Before anything of this sort is achieved, security and safety must be guaranteed to all the citizens of south Sudan because it’s only in a peaceful and safe environment people can get to work on issues affecting them or the nation as a whole on daily basis. My government is going to release funds to improve our road conditions and security will be deployed in areas where unknown gunmen have been maiming our citizens.

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The gov’t of the Republic of South Sudan is contributing 73 billion SSP; the total budget, including pledged donors’ contribution amount to about 142 billion SSP. Of the national budget, Juba is taking 97% while states take 3%; that is, of the 73 billion ssp, only 2 billion ssp will be shared among the 28 states. And that is the least of the problem, for Khartoum is said to be pocketing about 80% of the oil revenue and the rest by the foreign oil companies. This time around though, Juba can’t afford to shut it down even if they are literally on the verge of getting negative%.

hunger

Comments and Observations of the Goch Makuach-led Sub-committee on Revenues

November 23, 2016 (SSB) — The Committee takes this opportunity to appreciate Hon. Stephen Dhieu Dau, Minister of Finance and Planning, TGoNU for his FY2016/2017 budget speech to the Transitional National Legislature on 18 October 2016. The Committee has examined four documents with respect to the resource envelope. These were: a) the FY2016/2017 budget speech; b) economic and fiscal stabilization measures action plan; c) taxation amendment bill, 2016; and d) financial bill, 2016/2017. Based on information obtained from these documents, the Committee held meetings with 37 potential sources of revenue, including donor agencies. It is on the basis of these meetings that the Committee would like to make general and specific comments on the proposed resource envelope for the FY2016/2017 budget.

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By Paul Logali, Logali House, Juba
pray for peace in south sudan

November 18, 2016 (SSB) — In my attempt to answer this question, I went through the marketing report 2014-2015 of the Ministry of Petroleum for clues. Indeed, there’s a lot of positive things in it, including their recommendation for economic diversification away from oil dependency, ostensibly, current wells are estimated to run dry in 2035 unless further explorations are done and Jonglei blocs begin to lactate.

To understand what is at stake here, picture the case of a child who is seriously sick and admitted at the high dependency unit. The medical attendant will only allow the parents to be by the bed side – by right, the siblings will wait outside until the patient is out of danger. It’s the parent’s responsibility to make sure that the best doctors are in attendance, prescriptions are brought and administered on time until their child has recuperated and is discharged with a clean bill of health.

With the same measure, the issue of economic diversification away from oil dependency needs to be handled as an urgent imperative by the highest office in the land to avert fatalities and this office has the responsibility to consider establishing an economic diversification council to oversee the implementation of this program and equip such body with a non-compromised budget and competent technocrats recruited without bias considerations to do the job.

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By Thon Atem Ayiei, Juba, South Sudan

Burnt oil tanker along the Nimule-Juba road, Sept 2016.jpg

Burnt oil tanker along the Nimule-Juba road, Sept 2016.jpg

November 16, 2016 (SSB) — Yesterday night while I was concluding my article about United Nation Mission in South Sudan (UNMISS), one of my best friends phoned me to write an article about Nile Petroleum Operating Company Limited (Nile-Pet), the leading oil importing company and a government own entity. I responded to him that I am now working on a pressing article about UN misperception to protect and to provide humanitarian needs to the suffering people of south Sudan.

Secondly, this institution is a free-pub for anyone in charge to grab enough money in less than a month because of the contradiction incurred by the ministry of petroleum to mingle themselves in the activities of entitled business institution.

In the morning as I was going for work, I usually used public means to take me to juba town, on my way reaching Nile-Pet Mobil patrol station I was surprised by a very long line of vehicles lining for fuel from the patrol station up to the whole of Hai-cinima residential area. I asked myself, Will all these vehicles be able to get fuel? But the driver of the taxi was very bitter about Nile-Pet mismanagement and he said if I were the President of the republic, I would have sacked the entire company of the Nile petroleum to bring the management to be tried in the court of law.

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South Sudan: The Foreign Policies of the Western Nations Remain Permanently the Nations’ Foreign Policies, Not the Parties’ Foreign Policies

By Deng Kuol Deng, New York, USA

obama

President Kiir with President Obama of the USA at the White House, Washington DC

November 11, 2016 (SSB) —- My following South Sudanese: let us understand that the United States, or the western nations in general are used to consider their foreign policies as nations’ foreign policies or bipartisan policies, but not the parties’ policies. Let us understand this: what has happened between Obama Administration and South Sudan after independence, should be correctly considered as the one of USA policy against the China. China has been considered by the USA as an adversary in which both parties (Republican and Democrat) do not expect its alliance countries to associate themselves with it.

Therefore, the USA is not happy with our country, South Sudan on the ground that South Sudan government or its leadership has allowed China to continue with the oil contracts which were signed by Khartoum government. Not only the United States that is not happy with South Sudan government and its leadership but all the western countries which were stood with us during the war times are not happy with the South Sudan government on the ground that South Sudan has allowed China to continue with its exploration in oil fields. They have supported us during that times with the greatest hope that they may get the oil after the independent of South Sudan.

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By Thokgor Reech, Australia

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November 8, 2016 (SSB) — People are living in lack of income and resources are consequently insufficient as to prevent them from having a standard of living which is considered as acceptable by world civilization in general. As a consequence of insufficient income and other resources people are left out and marginalised from contributing in activities which are considered the norm for other people in the general public. (South Sudan Action Plan for Social development). Poverty is further than not having the money for material things. Poverty is also meaning not having the money to buy sufficient food for your family and other things.

The greatest aspect of poverty reduction is raising an awareness of needs includes agriculture development, private businesses or entrepreneurship, information technology (IT) infrastructure and security (safety).  Poverty reductions are unwanted and unbearable in the nationwide, which reflected as a social living standard increasing, economic disadvantages and emotional influences.  The poverty concern has become the major attention of the socio-economic, sustainable economic and expansion strategies to developing nations.

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By John Deng Ateny, Perth, Western Australia

hunger

Your need food, seriously?

October 20, 2016 (SSB) — South Sudan made headlines internationally for its independence and for its oil resources.  Many oil nations and their multinational corporations bid for South Sudanese Oil development. The interest in South Sudan oil is ongoing.

 The assessment of commercial viability and technical extraction of hydrocarbon deposit is very complex; it includes a number of significant variables, estimation of resources, reserves, proven reserve, probable reserve and possible Oil reserves.

Petroleum deposit form when sufficient hydrocarbon is concentrated at the earth crust. Petroleum resource deposit is defined as accumulation of oil and gas in the ground that may or may not be economically recovered. The portion of resource that is economically recoverable at a given time is referred to as petroleum reserve.

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By Mach Samuel Peter, Bor, Jonglei State

The secretary General of Jonglei State Chamber of commerce Mr. Abraham Chol Keech

The secretary General of Jonglei State Chamber of commerce Mr. Abraham Chol Keech

October 6, 2016 (SSB) — The World Food Programme (WFP) has taken steps to diversify and pick up the way it delivers food assistance in parts of South Sudan where there are functioning markets particularly in Bor, Jonglei State. The move benefits not only the beneficiaries but also the business community.

After June, South Sudan economic crisis left approximately 300 shops closed at Marol Market in Bor, but with WFP voucher program, forty shops have been selected receiving approximately 60 Million SSP every month something the chamber of commerce described as economic revivalism as some shops begin to pick-up.

The secretary General of Jonglei State Chamber of commerce Mr. Abraham Chol Keech said there is competition between whole sellers and retailers in Marol Market. He said the prices of food commodities have reduced, for instance 50kg bag of sugar is 3500 SSP in Bor and 3600 in Juba meaning Bor is cheaper that Juba.

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Oil Exploration: Uses and Benefits of Geological Survey

Posted: September 27, 2016 by PaanLuel Wël in Economy

By John Deng Ateny, Perth, Western Australia

September 27, 2016 (SSB) — Geological survey is an integration of location’s geological composition, recording of its structural and stratigraphical formation. The survey investigates mineral endowment, rock composition, hydrological distribution, plate tectonic and other natural hazards. This information are compiled in a geological survey map.

The main purpose of geological survey maps is to create a single source of information relating to resources and natural hazards. These maps assist governments (central and states), local councils and other government agencies in making important decisions.

They are used in land planning, engineering projects, infrastructure planning etcetera. Marking high risk zones on the maps save citizens, organisations and governments from making misguided investments. It also assist land allocation agencies in maximising land use and land value.

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By John Deng Ateny, Perth, Western Australia

hunger

Your need food, seriously?

September 25, 2016 (SSB) — South Sudan national economy mainly depend on the nation’s extraordinary mineral wealth, especially on petroleum. Maintaining resources reliance economy requires new discoveries. Effective national exploration, data acquisition and minerals distribution is required to provide ongoing economic prosperity. South Sudan has only limited geological work and this work is either unrecorded or locked away in former masters’ archives.

More geological survey needs to be done to continue resource and reserve upgrade. Unfortunately, there is non-existence financial investment, lack of related legislations, political instability and other threats, in including the presence of active landmines. South Sudan is still categorised Greenfield. Majority of land remain virgin despite oil discovery and ongoing active work in other areas.

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By John Deng Ateny, Perth, Western Australia

September 14, 2016 (SSB) — Hydraulic fracturing, paired with directional drilling method, has revitalised the economic exploitation of oil and gas from previously inaccessible geological formations. Hydraulic fracturing, also known as fracking, is a process by which fluids and other chemicals are injected under high pressure into oil or gas-bearing rock formation in order to open fractures to create paths for oil and gas to flow. The process unlock the once inaccessible oil and gases into economically viable reserve.

Hydraulic fracturing is not conventional exploration technique. However, the rise in oil and gas consumption and technological advancement has led to new and controversial exploration methods including Hydraulic Fracturing. Conversely, hydraulic fracturing has liberated oil and gas previously locked away in shale and in hard impermeable rocks. It has increased the economic viability of unlock liquid and gas petroleum that are trapped in deep underground geological formations.

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By John Deng Ateny, Perth, Western Australia

Burnt oil tanker along the Nimule-Juba road, Sept 2016.jpg

Burnt oil tanker along the Nimule-Juba road, Sept 2016.jpg

September 10, 2016 (SSB) — Natural Resources are geological occurrence under earth crust with intrinsic economic interest. After extensive exploration, these occurrences may be converted to measured or indicated Ore or Petroleum Reserve that can be exploited for economic benefits.

Resources exploitation comes with huge responsibilities; they must be extracted to equitably satisfy the need of the present generation as well as that of the future generations. In addition, natural resources must be exploited responsibly, their extraction must not be detrimental to the environment. Since the middle of twentieth century, the environmental campaign, scientific research and the resource related literature prompted strong legislation in industrialised world.

Unless the local communities are engaged and supportive of oil/mineral production in the area, opposition and confrontation may ensue. Oil Corporation needs ‘social licence to operate’. Close engagement of the local community is vital to the successful mining or petroleum extraction. The main stakeholders in sustainable resource extraction are local community, national, state and local governments and the oil/mining firms. The three stakeholders must be consulted and included in all level of decision making. The downside of the resource endowment must be responsibly managed and well legislated in order to enjoy the benefits it brings.

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By Ayuen Ajok, Washington, DC, USA

salary

salary

EXECUTIVE SUMMARY

September 7, 2016 (SSB) — The countries chosen for this analysis were based on country that had economic challenges similar to issues in South Sudan, such as Ghana, Zambia, Zimbabwe, Uganda and Mozambique. The macroeconomic policies that are used in this analysis are drawn from the success of economic policies in Zambia, Mozambique, Ghana, Uganda and Zimbabwe. Additionally, a conceptual framework was established for these four countries in order to provide evidence of successful policy intervention implemented by them

It is determined that South Sudan is to address its economic challenges, it would be advisable for it to reform its economy by using interventions similar to the ones followed by the countries mentioned above. This analysis also looks at the role of the government in these countries, with regard to the promotion of economic growth and country development, and in other sectors of the economy. Finally, the paper considers contemporary challenges that derail economic activity in those countries, particularly challenges related to inflation and currencies reforms

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