South Sudan’s President Salva Kiir has relieved Central Bank Governor, Johnny Ohisa Damian and several other high-ranking finance officials from their positions.
This marks the second time in just over a year that Kiir has ousted a central bank chief, leaving the nation with questions about the motives behind these abrupt changes.
The announcement of these dismissals was made via state television on Monday evening, but no specific reasons were provided for the removal of Johnny Ohisa Damian and the appointment of James Alic Garang as his successor. James Alic Garang is noted for his role as an advisor to the International Monetary Fund (IMF).
Notably, President Kiir’s reshuffle extended beyond the central bank, as he also replaced both deputy governors of the institution, alongside the head of the government’s revenue authority and other high-ranking officials in the finance and trade ministries.
South Sudan has witnessed a series of swift changes in the leadership of the central bank and finance ministry in recent years. In 2020 alone, the central bank governor was replaced twice, reflecting the volatile nature of the economic and financial landscape in the country.
Johnny Ohisa Damian assumed the role of Central Bank Governor only in August 2022, succeeding Moses Makur Deng, who was removed from the position. South Sudan’s economy has been grappling with significant challenges since the outbreak of a civil war in 2013, which prompted approximately a quarter of the population to seek refuge in neighbouring countries.
The civil war severely disrupted oil production, which had been the cornerstone of South Sudan’s economic activity. Although crude oil output has witnessed some improvement in recent years, it has yet to reach the levels observed before the conflict.
Moreover, other sectors such as agriculture have also faced steep declines, and in 2020, the country confronted the dual challenges of the COVID-19 pandemic and a sharp drop in oil prices, exacerbating South Sudan’s economic difficulties. The ramifications of these leadership changes in the finance sector remain to be seen as the nation grapples with its economic recovery.
Source: Reuters