South Sudan has reaffirmed its commitment to the East African Community’s plan to establish a Monetary Union by 2031.
Speaking at the 29th Ordinary Meeting of the East African Community Monetary Affairs Committee in Kampala on Friday, the Deputy Governor of the Bank of South Sudan, Weituy Luony Babouth, said the committee remains a key platform for strengthening financial cooperation among EAC partner states.
He thanked the Bank of Uganda and the EAC Secretariat for hosting the meeting, saying they had extended excellent hospitality to his delegation.
Babouth said the Monetary Affairs Committee continues to play a central role in guiding the region’s monetary integration agenda.
“The Monetary Affairs Committee remains a cornerstone of the East African Monetary Union process, providing an important platform for reviewing macroeconomic developments, assessing the implementation of Governors’ decisions, strengthening policy coordination, and promoting regional financial and monetary stability,” he said.
He said although partner states are progressing at different levels, South Sudan remains committed to the regional agenda.
The deputy governor said South Sudan continues to face several external challenges, including geopolitical tensions in the Middle East, the Sudan refugee crisis, supply chain disruptions, rising energy costs and climate change.
“Our economy, like others, continues to face significant challenges due to geopolitical tensions in the Middle East, the Sudan Refugee crisis, supply chain disruptions, rising energy costs, and climate-induced shocks,” he said.
He added that although higher international crude oil prices have improved export earnings, the gains have been partly offset by rising import costs.
Despite these pressures, Babouth said the country’s economic outlook remains encouraging.
He said private sector credit has expanded by about 27.5% while inflation is expected to ease to around 8.2% by the end of the year.
Babouth also said the government continues to work closely with the International Monetary Fund, the World Bank and the African Development Bank (ADB) to strengthen public financial management reforms, improve economic governance and promote fiscal sustainability.
However, he warned that climate-related disasters remain a major threat to the country’s economy.
“Climate-related disasters, particularly recurrent flooding, continue to pose significant economic and social challenges through displacement, exacerbating humanitarian situations and fuelling crises,” he said.
He added that addressing these challenges “requires stronger regional cooperation, sound macroeconomic policies, and sustained support from development partners.”
Babouth also praised fellow EAC central banks for supporting South Sudan’s financial sector reforms.
“The Bank of South Sudan remains fully committed to the work of the Monetary Affairs Committee and has actively participated in its technical working groups, while benefiting from valuable technical assistance from the Partner States’ Central Banks,” he said.
