Former Finance Minister Aggrey Tisa Sabuni. (-)

The former Minister of Finance and Planning, Aggrey Tisa Sabuni, has blamed the country’s prolonged economic crisis on heavy reliance on oil, weak implementation of public finance laws, corruption and poor governance.

Speaking on the Dawn Show on Eye Radio yesterday, Sabuni, who is also a technical advisor to the South Sudan Revenue Authority, said the country enjoyed strong international goodwill and high oil revenues during the early years of independence, particularly between 2011 and 2013.

He said the government then had enough resources to implement its budget, while relative peace allowed it to focus on infrastructure, health, education and other public services.

However, Sabuni said steady oil revenues created complacency and discouraged the development of other sources of government income.

“The significant inflow of oil revenue I think was not also made use of in terms of planning ahead, implementing plans that are put in place, this retarded growth in the economy,” he argued.

He said the failure to invest oil revenues in agriculture, infrastructure and other productive sectors prevented South Sudan from building a diversified economy.

According to Sabuni, weak enforcement of laws governing public resources has also contributed to corruption and poor economic management.

“Again, one would say poor implementation of public revenue management regulations contributed, poor implementation of laws and regulations governing the management of public resources gave way to corruption. The poor implementation of necessary regulations gave way to corruption. One of the clear examples of poor implementation of regulations relates to hiring of public employees,” he said.

He cited the recruitment of public employees based on personal connections rather than merit as an example of institutional weaknesses affecting government performance.

“The issue of merit as a basis for hiring for employment was ignored or thrown out. Low caliber, unqualified, inexperienced people employed on the basis of who you know or one can say nepotism contributed again to the destruction of the legal laws that govern the management of public resources.”

Sabuni described oil as both a potential blessing and a curse, depending on how it is managed.

He said dependence on oil revenue, which is not collected directly through taxation from citizens, has weakened the relationship between the state and the population and contributed to competition over control of national resources.

On the depreciation of the South Sudanese pound, Sabuni linked the currency crisis to the country’s heavy reliance on imports and limited access to foreign currency through the formal banking system.

He claimed that the allocation and sale of some oil cargoes to entities other than the government have contributed to the loss of oil revenue and foreign currency that would otherwise enter the central bank.

Sabuni said shortages of dollars in commercial banks force businesses to seek foreign currency on the open market, contributing to the depreciation of the pound and rising prices.

He noted that the South Sudanese pound exchanged at about two pounds to one US dollar around independence, compared with around 7,500 pounds to the dollar at the time of the interview.

The former finance minister said the economic crisis should not be blamed solely on the Ministry of Finance or the Bank of South Sudan.

Instead, he described it as a government-wide failure that requires comprehensive reforms, including merit-based recruitment, stronger enforcement of public finance regulations and better protection of public resources.

On domestic revenue collection, Sabuni said the South Sudan Revenue Authority has made significant progress but still has substantial room for improvement.

He estimated that the authority could potentially collect up to five times or more than its current revenue levels by expanding the tax base and strengthening collection systems.

He also pointed to the proposed introduction of value-added tax as a potential source of additional revenue, saying neighboring East African countries generate a significant share of their revenues from VAT.

Sabuni also raised concerns over customs exemptions, warning that exemptions granted outside legally recognized categories can lead to major revenue losses.

He said exemptions should be limited to legitimate categories, including those provided under international law or used as lawful incentives to attract investment.

On South Sudan’s membership in the East African Community, Sabuni defended the decision, saying membership allows South Sudanese easier movement across the region and access to a potential market of eight member states.

He said South Sudan could benefit more from regional integration if it develops internal stability, infrastructure and productive sectors capable of supplying regional markets.

Sabuni said South Sudan has fertile land, abundant natural resources and a young population, but instability continues to drive people away from rural areas and limit agricultural production.

He urged the government to return to the fundamentals of economic management by strengthening institutions, enforcing laws, diversifying the economy and investing oil revenues in sectors that can support sustainable growth.

His comments come amid growing public concern over currency depreciation, inflation, foreign currency shortages and declining purchasing power among ordinary South Sudanese.