South Sudan seeks $250m loan from Afreximbank for food security

South Sudan is seeking a $250 million loan from the African Export-Import Bank to implement a long-delayed peace agreement, fight COVID-19 and support food security.

The deputy minister of agriculture, Lily Akol Akol said, on Monday, said the loan was an ’emergency loan.

“The African Export-Import Bank agreed to continue with the process of finalizing the loan provided that the government of South Sudan goes through the right procedures,” Lily Akol Akol said on state television late on Monday.

She spoke a week after the central bank warned the country was running out of dollars.

South Sudan has suffered five years of civil war since becoming independent in 2011. The oil rich country has attracted repeated criticism for endemic corruption.

Your Friends Also Read:  Mohamed Abdullahi Mohamed signs anti-corruption law in Somalia

It has also approached the International Monetary Fund (IMF) for help, but it’s unclear if that will be successful.

According to Reuters, experts trying to analyse South Sudan’s debt profile are facing twin problems, one diplomat said: sometimes officials are unwilling to share data, and sometimes it is unclear if it even exists. The diplomat was not authorised to speak to the media and so requested anonymity.

Although South Sudan has always kept low dollar reserves – typically around two weeks – reserves were believed to have halved over the past month to five days worth of imports, the diplomat told Reuters last week.

Your Friends Also Read:  US Removes All Visa Reciprocity Fees For Nigerians

With the South Sudanese pound (SSP) depreciating and reserves shrinking, the biggest risk is the kind of hyperinflation that topped 800% in 2016, helping push pockets of the country into famine the following year.

Currently, food prices are climbing but not spiking, said Abdalla Nasir, a wholesale trader at Konyokonyo market. Since June, a 25 kg bag of beans has increased from 8,000 SSP in June to 10,000 SSP, and a 50 kg bag of maize from 8,500 SSP to 12,000 SSP.

Security remains a problem. Rebels who did not sign the 2018 peace deal are still mounting attacks; six bodyguards to one of the vice presidents were ambushed and killed last week.

Your Friends Also Read:  Protesters in Guinea Bissau pressure president to name prime minister

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.

Contact: digital@newscentral.ng

Total
0
Shares

Leave a Reply

Previous Article

Ghana Summons Ambassador over Criticism Trailing Closure of Nigerian-Owned Shops

Next Article

Tanzania Kicks Off General Election Campaigns

Related Posts