Central Bank’s decision to allocate $3m monthly to Ezra raises concerns

USD Banknotes | Photo : File
USD Banknotes | Photo : File

The Central Bank’s decision to allocate a whopping $3 million per month to the private electricity company, Ezra, to run its daily operations, worries economists and experts.

Speaking in an interview with a Juba-based radio station last week, the Central Bank Governor, Hon. Dier Tong defended his decision, saying the money is being used to purchase and import heavy fuel from foreign countries.

“For us, there is the issue of heavy fuel that is needed for electricity to be available. There are companies that have been sub-contracted,” Governor Dier Tong explained.

In the past few months, the electricity company, Ezra Group, reached an agreement with the relevant authorities after they had threatened to cut off electricity supplies across the city due to the government’s failure to provide hard currency.

Dier emphasized that the important thing is not the money that the government allocates, but the electricity that supplies the entire city.

“We see the bigger picture is not Ezra, we are not just giving this money to Ezra Company, and we think that there is a service that is benefiting our people and it is good that the Central Bank has the capacity to support that.”

The Juba City Power Distribution System was constructed with the support of the African Development Bank, which provided 38 million US dollars.