South Sudan - Institutional Support Project for Strengthening Economic Governance


Project Summary

Approval Date 09 Nov 2022
Signature Date 12 Dec 2022
Planned Completion Date 30 Jun 2027
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 15124
Commitment U.A 7,030,000
Status Implementation

Project General Description

Oil revenue accounts for more than 98% of public revenue, making South Sudan’s economy largely dependent on oil; hence a need to expand and diversify the non-oil revenue base, especially considering the potential from other revenue sources such as agriculture and animal products, forestry, mining, industry, trade, and tourism. The country started building its government institutions from a low base only less than a decade ago following3 independence in 2011. Since then, some progress has been achieved, as core administrative structures and mechanisms of political representation have been set up. Unfortunately, the decade of conflict in South Sudan has destroyed both human and institutional capacities across governance functions, including generation and management of statistics as a basis for accountability and evidence-based policy decision making in government, the private sector, as well as the non-government organizations. In addition, at independence, the country did not have adequate governance and institutional structures to efficiently manage its financial, economic and natural resources and formulate sound policies. Weak institutional capacities both at the national and state levels have been identified as being at the centre of the country’s failure to sustain peace. Identified challenges include (i) inadequate and lack of disaggregated economic and social data; (ii) incomplete or absence of legal frameworks (i.e., laws and regulations); (iii) inadequate institutional and human capacity; and (iv) inadequacy in policy, strategy and plan for various sector ministriesiii. This has resulted in shortcomings in economic policy planning, formulation and implementation; gender and regional imbalanced public services delivery; poor institutional coordination; limited transparency and accountability frameworks for economic governance; weak resources mobilization; and inefficient public spending and monitoring/oversight.

Project Objectives

The development objective of the ISP SEG is to strengthen PFM (i.e., formulation and implementation) through evidence-based inclusive policy dialogue, contributing to an inclusive national development. The project will support ongoing PFM reforms to boost budget framework and efficiency of public sector spending as a way of reducing economic and political fragility in South Sudan. The proposed support will include providing technical assistance, in particular, embedded advisors to strengthen capacity to generate and disseminate innovative knowledge that would guide policy and strategy in development planning.

Beneficiaries

ISP SEG will be implemented nationwide. The project’s direct beneficiaries are the Ministry of Finance and Planning (including at the state level), Ministry of Investment, Ministry of Mining, Bank of South Sudan, Parliament (including at the state level) and the National Bureau of Statistics. In addition, the project will benefit the general population of South Sudan, who will derive their benefitsfrom the enhanced economic activities, and employment creation arising from the stimulation of private sector participation in economic activities as a result of the improved environment.

Participating Organization

Funding
African Development Fund
Funding
Fragile States Facility
Implementing
MINISTRY OF FINANCE AND ECONOMIC PLANNING

Information

IATI identifier 46002-P-SS-KF0-007
Last Update 01 Feb 2023

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Contact Details

Name OKUDZETO Eline
Email e.okudzeto@afdb.org

Geographic Location

Country South Sudan
Coordinates Location Name
4.85165 31.5825 Juba