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South Sudan - Western Trade Corridor in Hyperinflation Times: Rapid Market Assessment in Northern Bahr El Ghazal and Warrap, February 2017

South Sudan - Western Trade Corridor in Hyperinflation Times: Rapid Market Assessment in Northern Bahr El Ghazal and Warrap, February 2017
  • The economic context is dramatic: the crashing currency and out-of-control inflation are not ideal circumstances for functioning markets.

  • Traders face difficulties on both sides – importing from Uganda is risky and uncertain, while demand is also sluggish.

  • Supplies from Sudan may partially offset these challenges, but they are restricted by the risks of official border closure and seasonal factors.

  • Cautious implementation of CBT may be still feasible although it will be challenging. 

  • A flexible approach is needed when implementing value-based vouchers. This involves monitoring traders’ stocks and facilitating advance stocking as much as possible;  adjusting the voucher value to inflation; providing timely payments to traders; combining CBT with nutrition-specific interventions;  and defining a contingency plan to switch back to GFD if traders cannot manage demand or it is operationally unfeasible to keep up with the hyper-inflation.