South Sudan’s finance minister Dr. Marial Dongrin Ater has admitted that the non payment of salaries was due to a shortage of cash.
Speaking on Wednesday Dr Afer said a cloud of uncertainty has been forming thanks to the paucity the South Sudanese pounds which is undermining the country’s economy.
Low revenue from oil exports since 2013 and the continuing unrest in neighbouring Sudan where South Sudan’s pipeline runs through are cited as damaging to the economy.
The conflict in Sudan which is into its second year has disrupted crude oil export through oil pipelines via Port Sudan.
The value of the South Sudan Pound (SSP) has been plummeting against the U.S. dollar, resulting in high inflation.
Meanwhile President Salva Kiir Mayardit has tasked the new Governor of the Bank of South Sudan, Dr. Addis Ababa Othow, with championing reforms to institute best practices and strengthen governance.
The appointment of Dr. Othow and his deputy Samuel Yanga Mikaya comes at a time of serious economic challenges, making the need for institutional reform all the more urgent.