Peace is the Only Therapy for Economic Recovery
The removal of the South Sudan Bank Governor KornelioKoryomMayik has been widely received by civil society activists, economists, traders among others. Koryom was sacked on Friday last week by a Presidential decree read on South Sudan Television and Radio which was repeated on Saturday and Sunday morning among other decrees respectively.
The current inflation rate has risen from 17% to over 800% in January, 2017 and it is still rising. God knows when our South Sudanese currency will gain value again. The Executive Director of Community Empowerment for Progress Organization (CEPO) Edmund Yakani is urging the current Chief of the Bank of South Sudan Dr. OthomAjak to put the central bank into standard in order to improve the economy. According to him, the devaluation of the South Sudanese Pounds in December, 2015 has failed to help stabilize prices in the market. He said some East African countries like Kenya and Uganda have decided that South Sudanese who go there for treatment should first exchange their dollars into either Ugandan or Kenyan shillings before they pay their service providers.
Meanwhile the Secretary General of the South Sudan Business Federation Bol Andrew said the removal of KornelioKoryomMayik would not change the economy as people would think without embarking on ambitious production. He said the only way to stabilize the skyrocketing prices in the country is peace that would provide a conducive climate for production.
Indeed some of the factors for investment are good government policy, political stability, presence of electricity, good roads, among others. All these factors can work when there is total peace in the country. As Bol Andrew puts it, “I don’t think there will be any change, unless there is a full peace so that we can start producing something that can earn us hard currency,” he said.
According to the Director for Administration for the Sudd Institute Abraham Awolich who spoke on Miraya Breakfast Show yesterday, the Central Bank has run dry because it could not give money to the commercial banks because customers of the commercial banks have refused to save their money with the commercial banks due to lack of liquidity.
That may be true but in general terms, for effective trade and commerce to take place, there must be a good government policy for investment, conducive political climate which means there must be peace and tranquility throughout the country. Oil production should be flowing normally; our six borders that generate us money from non-oil revenue must be functional so that the country can earn foreign currency to stabilize its economy.
According to sources, Dr. OthomAjak, the new Governor of the Bank of South Sudan will be sworn in today and then after that he will be able to outline his policies for quick economic recovery for South Sudan. But the question that lingers in the mind of South Sudanese is whether he will really make miracles without total peace in all parts of South Sudan…