Food, fuel, and medicine now cost more in South Sudan. The war in Sudan has spilled over the border. Tens of thousands of refugees have arrived. Shops in border towns are running low. The International Monetary Fund (IMF) wants South Sudan’s government to stop all but the most urgent spending. The goal is to build up cash reserves before things get worse.
In South Sudan, 7.8 million people—over half the population—are facing acute food insecurity, with around 2.2 million children suffering from severe malnutrition.
Sudan war pushes up prices and strains aid
Fighting broke out in Sudan in April 2023. Since then, South Sudan has seen a flood of returning refugees and a sharp drop in cross-border trade. Prices for basics like food and fuel have jumped in border areas. The World Food Programme says more than 1.4 million refugees and returnees have come into South Sudan since the war began. Food stocks are stretched thin. Prices keep rising. Even before this, two-thirds of South Sudan’s people did not have enough to eat. Now, the South Sudanese Pound keeps losing value. This is happening even though the BoSS has built up reserves and kept a tight grip on money supply.
Oil is South Sudan’s lifeline. It brings in about 90% of government money. Almost all crude oil leaves the country through pipelines and ports in Sudan. That makes South Sudan very vulnerable. In February 2024, the main pipeline in Sudan was badly damaged during the fighting. Oil exports through Port Sudan stopped for almost a year. Shipments only started again in January 2025. The long halt slashed government income and cut off foreign currency, as reported by Radio Tamazuj. The country took a big hit.
The IMF mission welcomed a new deal with the World Food Programme and a planned agreement with the International Organization of Migration. These steps will unlock US$20 million from the IMF’s Rapid Credit Facility Food Shock Window. The money will go to those hit hardest. Still, the IMF says this is not enough. The government must freeze non-essential spending to cope with rising costs and prepare for things to get worse if the war drags on.
South Sudan’s dependence on Sudanese pipelines and export terminals allows both warring parties in Sudan to use the South’s oil as a political lever, threatening the country’s economic and political stability.
Reforms and budget talks at a crossroads
The IMF and South Sudan’s leaders have agreed to push ahead with key reforms under the PMB. These include changing the BoSS Act to make the central bank more independent, publishing oil revenue and budget reports, and setting deadlines for public debt and banking reforms. The government also needs to address findings from the Auditor General’s reports on earlier IMF funds.
Talks will continue in the coming weeks on the FY2023/24 budget. The new budget must support stable prices and keep debt in check. This is needed to finish the first PMB review. The IMF team, led by Niko Hobdari, met with First Vice President Riek Machar, Finance Minister Dier Tong Ngor, and BoSS Governor Johnny Ohisa Damian. They also spoke with diplomats, business leaders, and civil society groups.
South Sudan faces its toughest test yet. The government must hold the line on spending and move faster on transparency. If it fails, future IMF support is at risk. The currency could fall further. Humanitarian needs are rising fast. There is no time left. Action is urgent.
