South Sudan

COUNTRY BRIEF

South Sudan

Country Context

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

  • Outcome 1 -reducing barriers to trade

    55%

    OUTCOME 1

    Reducing Barriers to Trade

  • OUTCOME 2 - Enhancing Private Sector Markets for Trade

    28%

    OUTCOME 2

    Enhancing Private Sector Markets for Trade

  • INDIRECT COST

    17%

    INDIRECT COST

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
Increased Physical

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
Enhanced Trade

Environment

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
Improve Business

Competitiveness

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.

Intermediate Impact

  • economic growth
    Economic growth

    $ 1.2B net added to total trade

    (2.4% increase above trend)

  • Exports from EAC to the rest of the world
    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)
    Intra EAC exports (US$ billion)

    $ 0.4B net added to exports

    (4.3% increase above trend)

Investors

partners

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

African businesses

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

Results in South Sudan

Increased physical access to markets

  • 5-i
    1

    MOU

    MOU signed between TradeMark East Africa (TMEA) and Government of South Sudan for One Stop Border Post (OSBP) implementation at Nimule.

Enhanced trade environment

  • 5-i
    1

    Customs Law

    Customs law passed by National Parliament.
  • 5-i
    1

    Border Post with computerised system

    Interim computerised system piloted at Nimule

Improved business competitiveness

News from South Sudan