By Ginaba Lino
The Government of South Sudan has adopted a new Economic Stabilization and Structural Reforms Policy Framework aimed at curbing inflation, stabilizing the national currency, and addressing long-standing weaknesses in the economy.
The policy was endorsed by the Council of Ministers following what officials described as a comprehensive review of the country’s economic conditions, which have been marked by rising prices, a volatile exchange rate, and heavy dependence on oil revenues.
Speaking at a press conference in Juba on Wednesday, the Minister of Finance and Planning, Hon. Bak Barnaba, said the reforms are intended to shift the government away from short-term, fragmented responses toward a more coordinated and sustainable economic approach.
“This is a Cabinet-owned policy,” Hon. Bak said, noting that it was developed through consultations within the Economic Cluster, as well as with key institutions including the Bank of South Sudan and the South Sudan Revenue Authority.
The government acknowledged that the economy remains under strain despite signs of resilience in some sectors. Inflation and currency instability continue to affect households and businesses, while limited domestic production has left the country vulnerable to external shocks.
Hon. Bak said the government plans to strengthen fiscal discipline and improve the credibility of the national budget, with renewed emphasis on expenditure control and enhanced revenue collection.
The reforms come at a time when public confidence in economic management has been weakened by salary delays, rising living costs, and shortages of foreign currency in the market.
Officials stressed that improved coordination between fiscal and monetary authorities will be critical, particularly in managing liquidity and stabilizing the exchange rate. The Bank of South Sudan is expected to play a central role in this process.
Beyond stabilization, the government aims to reduce its reliance on oil by promoting broader economic activity, particularly in agriculture, trade, and small-scale enterprises, sectors that employ large numbers of South Sudanese but remain underdeveloped.
Implementation of the policy will be overseen through inter-ministerial mechanisms under the Economic Cluster, with regular progress reports submitted to the Council of Ministers.
Hon. Bak said the reforms are designed to protect livelihoods and lay the foundation for long-term economic growth, while acknowledging that the real test will lie in effective implementation.
For many South Sudanese grappling with rising prices and uncertain incomes, the success of the policy will be measured not by announcements, but by whether daily life becomes more affordable and predictable.