In its April 2026 Africa Economic Update, the Bank said the South Sudanese pound and the Ethiopian birr were the weakest currencies on the continent in 2025, depreciating by about 15 per cent and 18 percent respectively, against the U.S. dollar by the end of December.
For South Sudan, the report links the sharp depreciation primarily to the ongoing conflict in neighbouring Sudan, which has disrupted the country’s vital oil export pipeline. This disruption significantly reduced foreign exchange inflows—the backbone of South Sudan’s import-dependent economy.
“With limited Forex available to pay for imports, the cost of goods surged and inflation remained around triple-digit levels from mid-2024 to mid-2025,” the report notes.
The currency crisis has had a direct impact on the cost of living, as shortages of foreign currency made it harder to finance imports, pushing up prices across essential commodities.
The World Bank further attributes the pound’s weakness to structural factors, including “mismanagement of oil revenues, fiscal indiscipline, and heightened foreign-currency speculation,” which have compounded pressure on the exchange rate.
Beyond currency depreciation, South Sudan is also facing mounting fiscal strain. The report highlights that the country is among those with the heaviest external debt service burdens in Sub-Saharan Africa. A growing share of government revenues is expected to go toward servicing external public debt, alongside countries such as Angola and Senegal.
This comes at a time when many African economies are seeing improving macroeconomic conditions. The report notes that several currencies across the continent strengthened in 2025, supported by higher export earnings, increased foreign investment, and easing global financial conditions. However, South Sudan remains an outlier, weighed down by conflict spillovers and structural economic weaknesses.
The broader regional outlook also underscores the risks facing the country. Ongoing instability in Sudan is flagged as a major source of uncertainty, with South Sudan identified as particularly vulnerable to spillover effects that could further strain its fragile economy and institutional capacity.
While inflation has begun to ease in many African countries, the World Bank warns that geopolitical shocks, rising debt service obligations, and domestic fiscal slippages could reverse gains.
The report notes that sustained recovery will likely depend on restoring oil export flows, strengthening fiscal discipline, and addressing long-standing governance challenges in the management of public resources.
