South Sudan face bankruptcy as civil push young state to the brink
South Sudan, the world’s youngest state, is facing bankruptcy and running the risk of becoming another failed state after Somalia and Libya, according to the United Nations (UN).
“There is no money left in the central bank. There is no money left in the Treasury. The government can no longer pay for the most basic things,” WSJ quoted Toby Lanzer, the UN’s deputy special representative in South Sudan to have said.
Lanzer explained that by September this year, hospitals and medical clinics in South Sudan will run out of critical medicine.
Adding to the country’s woes is the ongoing civil war in the country and mass food lacks. In the past 24 months, the US government has injected over $1 billion in the country in a bid to end increasing fighting in South Sudan, according to government figures.
South Sudan also struggles with inflation which has risen to more than 38 percent as the reserve bank continued to print money to meet up with budget shortfall.
Food prices continue to rise in the country. The price of sugar, among others, has more than doubled in the past eight weeks, according to the World Food Program has said. A continued increase in the fuel prices has also forced the firms that bottle water in the capital Juba to close shop.
Lack of power had also in May, forced Parliament to close down a session. The country therefore urgently needs to look into new sources of revenue to help shore up its economy and avoid bankruptcy.
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