Kiir replaces central bank governor as conflict-driven economic strain deepens

JUBA – South Sudan President Salva Kiir dismissed central bank governor Yeni Samuel Costa on Friday, replacing him with former bank chief Johnny Ohisa Damian as the country grapples with a conflict-fueled economic crisis and soaring inflation.

The decree, broadcast on the state-run South Sudan Broadcasting Corporation (SSBC), gave no official reason for the move.

It marks the latest in a series of abrupt leadership changes by Kiir, who has frequently fired finance ministers and central bank governors in recent years as the government struggles to stabilize the economy.

Costa, who was appointed on Nov. 12, 2025, served just over two months in the role, the shortest tenure of any central bank governor since South Sudan gained independence in 2011.

His replacement, Johnny Ohisa Damian, is a veteran economist returning for his third stint at the helm of the bank since 2022.

Ohisa previously held senior positions at the Ministry of Finance and Economic Planning and was removed from the governor’s post seven months ago.

The reshuffle comes as South Sudan faces intensifying economic pressure, including a sharp depreciation of the local pound and persistently high prices for food and basic commodities.

Despite a 2018 peace agreement that ended a five-year civil war, implementation has been uneven.

Recent confrontations between rival forces have disrupted trade routes and increased security spending, reinforcing what economists describe as a “war-driven economic cycle” where military expenditures crowd out social spending.

Analysts say the effectiveness of the central bank—responsible for monetary policy and supervising the banking sector—has been undermined by political interference, limited foreign reserves, and the country’s heavy dependence on unpredictable oil revenues.