South Sudan Launches Ambitious 10-Year Development Plan Amid Soaring Inflation and Debt

By Samuel Ouma

South Sudan has rolled out an ambitious 10-year development plan designed to transform its fragile economy, even as the nation faces a staggering inflation rate projected to hit 65.7% by 2025, along with rising debt and ongoing liquidity issues.

The government, under the guidance of the Ministry of Finance and Planning, stateted a strategy that promotes inclusive, resource-driven development to tackle the intertwined humanitarian, economic, political, and security challenges is in place. A key focus of this plan is to reduce the country’s heavy reliance on oil and to boost investments in agriculture, infrastructure, education, and healthcare.

“This plan marks South Sudan’s determination to shift away from its dependence on oil and to fortify other sectors that can ensure long-term resilience,” said Akol Dok, Managing Partner at Orus Consulting Limited, during an interview with CNBC.

For many years, South Sudan’s economy has been heavily reliant on oil, which makes up the majority of its exports and foreign currency reserves. Interruptions in oil production have left the country exposed, causing inflation to soar and delaying payments to contractors.

The new strategy aims to create more opportunities in agriculture, mining, tourism, healthcare, and education—areas that are seen as underdeveloped but crucial for lasting stability.

“We expect agriculture, mining, and tourism to receive a lot more focus because they haven’t been invested in as much as oil,” Akol elaborated.

 “On the social front, healthcare and education will also be top priorities, with the private sector playing a vital role in supporting the struggling public systems.”

The inflation crisis in the country is proving to be one of the biggest hurdles to progress. Businesses are grappling with fluctuating prices, a lack of cash flow, and a growing distrust in the banking system.

“Inflation isn’t just a standalone issue—it’s the symptoms of inflation that are causing even bigger problems. We’re witnessing liquidity crises, where people can’t access their money, and there’s a general mistrust of both banks and mobile money services,” added Akol.

To tackle the liquidity issue, the Central Bank has proposed introducing higher denomination notes, like 5,000 and 10,000 South Sudanese pound bills, to facilitate cash transactions in an economy where inflation has diminished the value of current notes.

Political stability is another major concern, especially with South Sudan gearing up for its first elections since gaining independence in December 2026. Businesses are being cautious, with some holding off on new investments until after the elections.

“Investors tend to think long-term, and the uncertainty surrounding the upcoming elections has made many wary,” Akol explained.

Despite the challenges, the private sector is still spotting opportunities, particularly in infrastructure, education, and agribusiness. The plan also highlights the importance of climate resilience, with strategies to tackle floods, droughts, and deforestation, which have increasingly disrupted livelihoods.