South Sudan’s Information Minister, Michael Makuei, has defended recent increases in mobile network tariffs, attributing the hike to the depreciation of the South Sudanese Pound (SSP) against the US dollar.
The country’s main telecom operators – MTN, Digitel, and Zain – recently adjusted their tariffs to align with the Central Bank’s exchange rate. The move was approved by the National Communications Authority and the Bank of South Sudan (BOSS).
Speaking at the 8th Governors’ Forum in Juba, Makuei emphasized that South Sudan’s telecom rates remain the lowest in the East African region, at 0.4 cents per minute. He blamed the tariff increase on the weakening of the local currency, which has inflated costs when converted to hard currency.
“The problem isn’t a deliberate price increase but the weakness of our currency, which affects telecom charges,” Makuei explained.
The minister also highlighted challenges faced by telecom companies, particularly in rural areas, where operational losses are mounting. Some companies have considered scaling back services to urban areas due to difficulties accessing foreign currency at official rates.
Makuei acknowledged that telecom firms are often forced to rely on black-market exchange rates because the Central Bank cannot provide sufficient foreign currency at official rates. He noted that as long as the SSP remains weak, higher tariffs are unavoidable.
In response to public outcry, Makuei urged citizens to either reduce their phone usage or adapt to the current situation, adding that tariffs would decrease if the currency strengthens