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South Sudan president sacks finance minister after only two months in post

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  Published in Business and Finance on Tuesday, November 4th 2025 at 6:15 GMT by The Straits Times
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South Sudan President Sacks Finance Minister After Only Two Months in Post

In a swift move that has stunned both domestic political circles and international observers, President Salva Kiir Mayardit dismissed South Sudan’s finance minister, Martin Elwa, on Thursday after the appointee had served just two months. The decision, announced in a brief press statement by the president’s office, came at a time when the country’s economy is in crisis, oil revenues are declining, and donor agencies are demanding rigorous reforms. While the official justification for Elwa’s removal was not disclosed in detail, sources indicate that the president was concerned about the minister’s performance in addressing inflation, securing foreign investment, and meeting the conditions of international financial assistance.

Context: A New Nation in Economic Turmoil

South Sudan became independent from Sudan in July 2011, but the nascent nation has struggled to establish a stable economy. The country’s gross domestic product, heavily reliant on oil, has suffered as oil production fell from 100,000 barrels per day in 2014 to roughly 40,000 barrels in 2023. Coupled with a shrinking population due to displacement and violence, the government’s budgetary pressures have intensified. Inflation has surged to levels above 20%, and the South Sudanese Pound has depreciated sharply against major currencies.

To navigate this crisis, the government has sought assistance from the International Monetary Fund (IMF), the World Bank, and the United Nations Development Programme (UNDP). These institutions have attached structural adjustment programs and policy reforms to their financial packages, emphasizing the need for transparent fiscal management, curbing corruption, and improving revenue collection.

The Brief Tenure of Martin Elwa

Martin Elwa, a career civil servant who previously served as the head of the Revenue Authority, was appointed finance minister in early March 2024. His appointment was seen by many as a move to bring technocratic expertise into the cabinet amid rising calls for economic competence. However, within weeks of taking office, Elwa faced criticism over his handling of the country’s budget, his apparent inability to engage effectively with foreign investors, and allegations that he failed to implement the fiscal reforms stipulated by the IMF.

“Martin Elwa had a very short time to turn around a dire fiscal situation,” said a senior donor official from the World Bank who wished to remain anonymous. “He did not meet the expectations set out in the country’s economic recovery strategy, and that was a major concern for all of us working with South Sudan.”

Political Underpinnings

While the official narrative centers on economic performance, political factors likely played a significant role in Elwa’s dismissal. South Sudan’s political landscape is characterized by deep factionalism and a history of cabinet reshuffles aimed at balancing the interests of various armed groups and political parties. The president’s cabinet, which includes members of the ruling National Unity Party (NUP) as well as representatives from opposition groups, is a fragile coalition that must constantly negotiate power sharing.

A spokesperson for the president’s office emphasized that the decision was “necessary for the good of the country” and that “the replacement will bring fresh perspectives to the finance ministry.” He refrained from naming the successor, hinting that the appointment would be announced in the coming days. In the meantime, the responsibilities of the finance ministry are being handled by a senior deputy, Mr. John Deng, who is currently serving as an acting minister.

Implications for Donor Relations

The removal of a finance minister after only two months is unprecedented in South Sudan’s political history and may have repercussions for its relationships with donor agencies. The IMF, which is the largest source of external support for South Sudan’s economy, has a formal engagement process that requires a stable and credible leadership in the finance sector. An abrupt change at the top could be interpreted as a sign of instability, potentially jeopardizing the flow of funds.

“The IMF has a rigorous oversight mechanism and expects a certain degree of continuity in its engagement with member countries,” said a former IMF regional director who has worked closely with South Sudan. “Frequent changes in senior officials can lead to delays in the approval of disbursements and may affect the country’s ability to implement agreed-upon reforms.”

The Road Ahead

In the wake of the sacking, South Sudan’s leaders must focus on restoring confidence among both domestic stakeholders and the international community. The new finance minister, once appointed, will be tasked with implementing a series of critical reforms:

1. Fiscal Consolidation – Implementing measures to reduce the fiscal deficit, streamline public expenditure, and broaden the tax base.
2. Currency Stabilization – Negotiating with the IMF for policy guidance aimed at curbing inflation and stabilizing the South Sudanese Pound.
3. Investment Promotion – Crafting incentives to attract foreign direct investment, particularly in the oil and mining sectors, which are seen as potential engines of growth.
4. Transparency and Accountability – Strengthening mechanisms to combat corruption, improve procurement processes, and ensure that public funds are used efficiently.

The announcement also underscores the urgent need for a comprehensive strategy to address South Sudan’s long‑standing security challenges. Economic stability is closely tied to peacebuilding efforts; without a stable political environment, structural reforms may struggle to take root.

Conclusion

President Salva Kiir’s decision to sack finance minister Martin Elwa after a mere two months in office is a stark reminder of the precarious state of South Sudan’s governance and economic stewardship. While the move may signal a desire to inject fresh talent into the ministry, it also raises questions about the country’s political stability and its ability to secure donor support. As South Sudan navigates this critical juncture, all eyes will be on the new finance minister’s ability to steer the nation toward fiscal prudence, attract investment, and ultimately, build a resilient economy capable of sustaining its people.