South Sudan

Country Context

In their twelfth year of independence, the people of South Sudan are confronted by formidable challenges marked by conflict in 2013 and 2016, intensifying humanitarian, economic, social, and political crises. The 2018 Revitalized Agreement on the Resolution of Conflict in the Republic of South Sudan (R-ARCSS) continues to provide hope for peace. However, sub-national violence persists in some areas, leading to the displacement of people and loss of lives and livelihoods.

The World Bank's Fragile Situations list classified South Sudan as a medium-intensity conflict zone. It ranks 160 of 163 countries in the 2023 Global Peace Index, indicating significant internal conflict and low peace levels.¹ Traditionally rooted in tribal and pastoralist disputes, inter-communal conflicts persist in many parts of the country. Limited access to remote locations where these incidents occur hampers access to services for affected people. Explosive remnants of war (ERW) contamination, particularly in the southern Greater Equatoria Region, pose threats to safe returnee resettlement, agricultural activities, and the general safety of the civilian population.

South Sudan grapples with dire economic conditions marked by institutional fragility, economic policy distortions, and limited diversification. The effects of conflicts deepen extreme poverty and hamper private sector prospects and livelihood improvements.² Despite hopes for an oil-led recovery after the 2018 truce and resumed oil production, COVID-19, sub-national violence, flooding, and structural hurdles significantly impacted economic progress.³

South Sudan relies on oil exports, which comprise 95 percent of its exports and are the primary national revenue source.⁴ Inflation, currency depreciation, and limited diversification are significant economic challenges. The COVID-19 pandemic exacerbated these issues, causing a sharp oil price drop, income loss, severe currency devaluation, and soaring inflation, which the country has yet to recover from. In addition, global trends, including pandemic-induced supply shortages, rising United States dollar (USD) denominated commodity prices, and a stronger USD, impact the economy significantly.

South Sudan's reliance on imports for consumer goods faces a persistent balance of payments deficits and limited hard currency access beyond oil exports. As of 31 August 2023, the South Sudanese Pound (SSP) had depreciated against the US dollar by 50 percent since the beginning of 2023.