South Sudan unveils funding strategy to spur economic growth
September 17, 2024 (JUBA) – South Sudan has unveiled a raft of economic strategies to secure funds to spur economic growth in a country grappling with more than double-digit inflation and dwindling finances.
Announcing the new initiative, South Sudan’s Finance minister, Marial Dongrin Ater described the strategies as platforms for updating the public through the media about government’s plans and efforts to revamp the economy and curb inflation, pay salaries and operating costs of the government.
“I am pleased to update the public on a series of interventions designed to bolster our country’s economic performance. These measures are aimed at improving tax revenue, mobilization, enhancing crude oil export, securing funding, digitalization and financial inclusion, and fostering food security”, the minister told reporters at a news conference in the capital, Juba on Monday.
Ater said one of the strategies to secure funding was to bolster efforts aimed at enhancing revenue mobilization by the Ministry of Finance and planning through collaborative working relations with South Sudan revenue to ensure effective and efficient collection processes and tax compliance.
“The significant progress has been made on the resumption of oil production from Dar Blend in Upper Nile and we are optimistic for a breakthrough. We are actively engaging with bilateral and multilateral partners for concessional loans and grants to address pressing economic challenges. These funds have already been earmarked to support key sectors and stimulate economic growth,” he remarked.
The minister cited the adoption of mobile money electronic banking solutions to reduce reliance on cash transactions.
Ater, however, underscored the resolve of his institution to be paying salaries and operating cost on time, citing payments after assuming his roles and duties as the minister of finance and planning.
“Going forward, the Ministry of Finance and Planning will be paying salaries and operating costs for ministries, departments, and agencies through bank accounts. This initiative will enhance financial efficiency, reduce risks associated with excessive cash circulation, and improve transparency. The banking sector is expected to simplify procedures for electronic transactions and telecommunication operators and intensify public awareness campaigns on mobile banking services”, he stressed.
To mitigate food shortages and ensure affordable prices, Ater said the Ministry of Trade and Industry is leading measures to ensure a steady supply of essential commodities and other vital products.
I assure the public that the government is determined to continue strengthening our currency, stabilize the market, and foster a conducive environment for economic growth”, stressed the minister.
He added, “This will be maintained to overcome the prevailing challenges and achieve prosperity”.
South Sudan oil exports halted in February 2024 after inflicting damage to the pipeline. The rupture compelled the Sudanese government to declare a force majeure in March after operators of the Jabalayn-Port Sudan pipeline discovered gelling between Pump Stations 4 and 5, located in a military operation zone. The incident was noted by Sudanese authorities when an impeded flow was detected in mid-February. This incident came at a time when concerns have arisen over the safety of Sudan’s main refinery, carrying 100,000 bpd from the Al-Jaili facility near Khartoum.
The oil facility was hit by shells in January and February.
Ater hinted on the resumption of the production and flow of the oil to the international market for sale through Port Sudan on the Red Sea, saying significant progress has been made on the resumption of oil production from the Dar Blend in Upper Nile.
He expressed optimism for a breakthrough after President Salva Kiir and Chairman of Sudan’s Sovereign Council Abdel Fattah Al Burhan met and discussed the resumption of oil exports through Sudan following four months of work on the oil infrastructure.
The war in Sudan, which erupted in 2023 between the Sudanese army and the paramilitary Rapid Support Forces, has disrupted oil production and exports. South Sudan’s oil is transported via a pipeline through Sudan to a terminal on the Red Sea. A March 16 letter from Sudan’s minister of petroleum declared force majeure on oil deliveries through the pipeline.
South Sudan depends on Sudan to export its crude, which travels through a pipeline to the Red Sea via Khartoum. The export of the crude grades are the Nile and Dar Blend, which are mostly sold to Asian refiners in China, India, and Malaysia.
Revenues from oil account for over 90 percent of South Sudan’s national budget.
(ST)