A ruptured pipeline in Sudan devastates South Sudan’s economy, leaving citizens struggling to survive amid skyrocketing inflation and shortages.
At 75, Galiche Buwa has weathered civil wars, famines, and natural disasters, yet managed to survive thanks to her small grocery business. But now, even her modest livelihood is on the brink as South Sudan grapples with an economic crisis triggered by the rupture of a key oil pipeline in its war-torn neighbor, Sudan, back in February.
This damaged pipeline was crucial for transporting South Sudan’s crude oil to international markets, with petroleum exports traditionally constituting around 90 percent of the impoverished country’s GDP. The repercussions have been swift and severe. Inflation has soared, with the South Sudanese pound plummeting on the black market from 2,100 per U.S. dollar in March to 3,100 today. Official rates have also dropped, slipping from around 1,100 in February to nearly 1,550 this month.
“Since the 1970s up to now, I have been here, but these days we are suffering. Things are tough,” Buwa lamented as she tended to her stall at the Konyo-Konyo market in the capital, Juba. “We are unable to buy stock; things are expensive… and prices keep rising every day,” she added, explaining that she now buys supplies on credit. Wholesale price hikes have forced retail prices to follow suit, with a mug of maize she sells jumping from 800 South Sudanese pounds in March to 2,000 today.
The economic woes have not spared anyone. Teddy Aweye, a 28-year-old mother of two, describes the struggle to feed her family, now reduced to one meal a day. “You go to the market today, you get a price, and tomorrow you go back, and it’s different. I had to return home without buying anything,” Aweye told AFP. “Life is really very difficult.”
This refrain is echoed across Juba’s largest market, where traders report daily losses. Abdulwahab Okwaki, a 61-year-old butcher, sees his business in crisis. “A customer who used to buy one kilo now takes half a kilo, and the one taking half a kilo now takes a quarter. The one who was taking a quarter is not coming anymore,” he explained. Often, Okwaki loses money when he can’t sell meat before it spoils. Many fellow butchers have already quit, unable to sustain their businesses.
Higher-end businesses are also suffering. Harriet Gune, a 27-year-old entrepreneur, said her fashion boutique is losing customers. “The more you increase prices for the items in the shop, the more you scare away clients,” she said. A pair of jeans that used to cost 25,000 South Sudanese pounds in March now sells for 35,000. “We need to raise prices to get enough money to order new stock,” she added.
Even government officials aren’t spared from the financial strain. In May, Finance Minister Awow Daniel Chuang informed parliament that the government would struggle to pay salaries to lawmakers, military personnel, police, civil servants, and other officials due to a significant revenue shortfall. The country is losing about 70 percent of its oil revenues because of the pipeline rupture, which has halted exports of both Nile blend and Dar blend crude. “The production is only from Blocks 12, 14, and 58, meaning only around 30 to 35 percent of the oil is flowing,” Chuang said.
South Sudan was already in crisis before the pipeline shutdown, with fears that the long-anticipated elections, currently scheduled for December, may be delayed. Rampant corruption has drained the nation’s coffers, with the ruling elite routinely accused of plundering resources. Additionally, the country is highly susceptible to currency shocks, as it imports nearly everything, including agricultural produce.
The fighting in Sudan between the army and the paramilitary Rapid Support Forces since April 2023 has exacerbated the situation, killing tens of thousands, forcing millions to flee—including over 700,000 to South Sudan—and pushing Sudan to the brink of famine.
Economist and government advisor Abraham Maliet Mamer urged South Sudan to plan for its future. “Our country is suffering. We have less money, fewer services, and our security is a problem,” he said, advocating for the construction of refineries and pipelines through other nations. “Sudan will never be the same again. Until we develop alternatives… we will be having issues,” he warned.
As South Sudan grapples with these compounded crises, the ripple effects are felt by its citizens, like Buwa and Aweye, whose daily struggles underscore the broader economic and political instability. The situation demands urgent attention and innovative solutions to ensure the survival and future prosperity of this fragile nation.
