The finance minister also addressed the issue of deficit financing, which has led to inflation and rising debt.

By Aguok Chok

Speaking at the Governors’ Forum on Friday, South Sudan Minister of Finance, Dr. Marial Dongrin called for the removal of checkpoints across the country, stating that the checkpoints contribute to the rising cost of doing business.

His remarks come at a critical time when the country is facing multiple economic challenges, including inflation, fiscal pressures, and economic slowdown.

The finance minister emphasized on the importance of a business-friendly environment in achieving the country’s long-term economic goals. “The proliferation of checkpoints within and between states and administrative areas has significantly increased the cost of doing business in the country. These obstacles hinder economic activity and deter investment,” Dr. Dongrin said, and urged relevant authorities to take immediate action to remove the checkpoints.

The Minister outlined the broader economic difficulties facing the country, including severe flooding linked to climate change, a strained oil sector due to regional conflicts, and inflationary pressures.

“Recent years brought new crises, including devastating floods linked to climate change, which have damaged infrastructure and reduced agricultural output. The ongoing conflict in Sudan has resulted in an influx of refugees, detainees, and disruption of oil infrastructure.”

Despite these challenges, Dr. Dongdrin expressed confidence in the country’s resilience, recounting past struggles, particularly the fight for independence. “Our undeterred spirit and resilience drove us to achieve one of the greatest feats of human struggle for freedom and liberty in the world in the 21st century,” he said.

Further, he outlined the government’s plan for restoring economic stability, including on targeted investments in agriculture and mining. The fiscal year 2024-2025 budget prioritizes these sectors as part of efforts to diversify the economy and reduce dependence on oil revenues. “Increasing investment in these essential areas is critical for diversifying the economy and minimizing risks associated with over-reliance on the oil sector,” Dr. Dongdrin said.

Dongrin also addressed the issue of deficit financing, which has led to inflation and rising debt. “We have taken firm and deliberate actions to halt deficit financing,” he explained, emphasizing the need for government spending to align with actual revenue collection and the need for public financial management reforms to ensure fiscal discipline and transparency.

“We are advancing plans to strengthen revenue collection and management across all levels of government,” he said, underscoring the need to close loopholes that contribute to tax non-compliance.

Additionally, the minister touched on the importance of peace. “A truly peaceful society is one where citizens have equitable access to jobs, education, healthcare, and essential services,” he said. By removing checkpoints and improving the ease of doing business, Dongrin believes South Sudan can create the conditions necessary for long-term investments and economic prosperity.