South Sudan’s President Salva Kiir has once again taken a decisive step by firing central bank governor Johnny Ohisa Damian, along with several other senior finance officials. This marks the second time in just over a year that Kiir has removed a central bank chief.
- The announcement, made through state television, did not provide a specific reason for Damian’s removal. However, it revealed that James Alic Garang, an advisor to the International Monetary Fund, would be appointed as his replacement.
- The changes made by President Kiir also extended to the central bank’s two deputy governors, as well as senior officials in the finance and trade ministries. This shake-up in the leadership of the central bank and finance ministry has been a recurring event in recent years.
- South Sudan’s economy has been severely affected by a civil war that erupted in 2013, leading to a significant population displacement. The conflict resulted in a decline in oil production, which previously served as the main driver of economic activity.
- Although there has been some improvement in crude oil output in recent years, it has not yet reached pre-war levels. Additionally, other sectors such as agriculture have also experienced a steep decline, while the COVID-19 pandemic and plummeting oil prices in 2020 further exacerbated the country’s economic challenges.
- The frequent changes in central bank leadership and finance ministry officials indicate the ongoing struggle to stabilize and revitalize South Sudan’s economy. The appointment of James Alic Garang, with his experience as an advisor to the IMF, may signal a renewed focus on economic recovery and financial stability.
- The South Sudanese government will need to implement comprehensive and sustainable economic reforms to address the long-standing issues and create a conducive environment for growth and development.