South Sudan (SS) gained independence in July 2011 after decades of conflict. Since
then, the government has faced multiple nation-building challenges. The greatest of them was the resumption of widespread conflict in 2013, which led to a decline in real GDP. Further, the country faces the task of building new institutions while dealing with low human and institutional capacity, diversifying revenue streams and providing basic services to its 11 million people (half of whom are illiterate and living below the poverty line). Renewed conflict in 2013 not only destroyed development progress that the country had made since independence, but also undermined the private sector as the increased risk profile hampers domestic and external investment.
South Sudan relies heavily on imported goods, while the economy relies heavily on oil revenue which accounts for 90% of all exports and 98% of public revenue. Global fall of oil prices have led to critical shortage of foreign exchange and devaluation of the SS currency. SS recently acceeded to the EAC, within which it hopes to trade more with its neighbours, strengthen its governance structures, and increase economic activity. However it faces challenges in implementing EAC committments.
Strategy 2 Total Programme Budget Summary
Reducing Barriers to Trade
Enhancing Private Sector Markets for Trade
Total Budget US $40 Million
TMEA in South Sudan
TMEA has supported the implementation of 10 projects with net funding value of $ 18.6M in Strategy 1.
Table: Highlights of Priority Project and Results in South Sudan – 2010 to 2017
|THEMATIC AREA||DETAILS||EXPECTED RESULTS BY 2017||RESULTS TO DATE|
Access to Markets
|Set up Nimule One-Stop Border Post and improve border processes||Reduce time to cross border by 30% from 3 days to 1 day||• Reduction in time to clear humanitarian goods from 5 to 2 days|
|Modernise South Sudan Bureau of Standards||Increase efficiency in testing traded goods||Increased no. of product types tested and issued with certificates from none to 46|
|Modernise Customs Management||Increase efficiency in non-oil revenue collection||• Increase in monthly customs revenues collected from 1.2million SS Pounds in 2011 to 81.5 million SS Pounds in 2016
• A new Customs Law passed by the national parliament and signed into law by the President of South Sudan in May 2014
|Support EAC Accession||Conclude accession negotiations||South Sudan acceeded to the EAC in April 2016|
|Give a voice to private sector and civil society||No. of advocacy issues raised and addressed||New Project|
|Support women entrepreneurs and cross border traders||Increase income for 600 women via value addition in Shea-Butter and honey||1,400 women entreprenuers and cross-border traders were trained on enterprise development, customs procedures and regulations in Juba and Nimule|
Continuity and Innovation in TMEA Strategy 2:
South Sudan’s economic growth outlook is uncertain. Successful implementationof development programmes is largely dependent on the outcomes of the Peace Agreement. Within the context of its fragile political and economic situation, TMEA Strategy 2 will adopt a two-pronged approach, with short term and longer-term goals. In the short term, TMEA will focus on private sector-led programmes, which support humanitarian action and which aim to secure livelihoods. For the longer term, TMEA will roll out interventions focused on supporting infrastructure development, boosting the productive capacities of identified sectors, and facilitating cross-border trade.
As a priority, TMEA will support the government to implement EAC commitments. Full implementation of these commitments is expected to enable business to benefit from reduced trade costs in the region, increase opportunities to trade and compete with their regional counterparts, and as a result, create employment opportunities locally. Responding to glaring gaps in South Sudan’s institutional capacity, the programme will support long-term training and technical assistance at all levels of central, state government and the private sector.
For the longer term, TMEA will roll out interventions focused on supporting infrastructure development, boosting the productive capacities of identified sectors and facilitating cross- border trade.
$ 1.2B net added to total trade
(2.4% increase above trend)
Exports from EAC to the rest of the world
$ 0.4B net added to exports
(4.3% increase above trend)
Intra EAC exports (US$ billion)
$ 0.4B net added to exports
(4.3% increase above trend)
Table: Highlights of TMEA South Sudan Programmes 2017-2023
|THEMATIC AREA||PROGRAMME COMPONENT||DETAILS EXPECTED RESULTS BY 2023|
|OUTCOME 1: REDUCING BARRIERS TO TRADE||Improved efficiency and capacity of transport and logistics networks||Construction of One Stop Border Posts (OSBPs) and Integrated Border Management (IBM)||Reduced crossing time at Nimule border post|
|Construction and operationalisation of cross Border Markets and logistics hub||Increased number of women and small businesses trading at new markets|
|Improved trading standards and reduced non-tariff barriers||Non-Tariff Barriers (NTBs) elimination||Efficient implementation of national and regional NTB mechanisms|
|Support to SSNBS for Quality & Standards, Sanitary and PhytoSanitary (SPS)||Enhanced national framework for standards in SS|
|Improved and more transparent trade processes and systems||Customs Reforms and Modernization and ICT for Trade||Improved trade systems, agencies & procedures|
|Improved regulatory environment for trade in South Sudan||Support SS EAC Accession plans||Strengthened EAC regional trade integration capacity for SS|
|OUTCOME 2: ENHANCING PRIVATE SECTOR MARKETS FOR TRADE||Better private sector-led advocacy for trade||Better Private Sector-Led Advocacy||Enhanced environment for business growth; Improved effectiveness and quality of service provision and advocacy|
|Increased efficiency in private sector logistic service||Enhanced Private Sector Utilization of Efficient Logistics||Improved quality of logistics service providers; Improved competitiveness of smaller logistics firms|
|Increased export capacity of East
|Improved Export Capability||Increase in firms exporting in the region; Stronger linkages developed between firms and suppliers across the priority sector|
|Greater inclusion of women and small businesses in trade||Greater inclusion of women and small business||Increased access to market and trading information by women informal cross border traders; Increased formalization of small business; Establishment/ Strengthened institutional capacity of women cross border trade associations|