South Sudan's independence cost Khartoum dear in lost oil income, creating a void that must be filled to ease tensions
A long queue of cars and motorbikes snakes from the dusty forecourt of a petrol station into the main road, hampering traffic on a sweltering afternoon. Over the past fortnight the queues have become increasingly common in Juba, South Sudan's capital, as a shutdown of oil production - caused by an oil-fee dispute with Sudan - begins to bite.
Dollars from the sale of oil are getting scarcer and food prices are rising. In the space of one week, pasta has gone up from one South Sudanese pound to seven, beef is now 30 instead of 25, goat has risen to 35 from 28, and a can of Coca-Cola that was three pounds is now four.
The government has already taken some austerity measures, halving all government spending (although protecting salaries) and cutting monthly grants to the 10 states. The government says it will also triple tax revenue within six months through better tax collection.[view whole blog post ]