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). Domestic and external investment are needed for sustained growth.
The South Sudanese rely 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 South Sudan currency. South Sudan recently acceded to the EAC in April 2016, 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 commitments.
As a priority, TMA will support the government to implement EAC commitments. Full implementation of these committments is expected to enable businesses 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 needs 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.
South Sudan’s economic growth outlook is uncertain. Successful implementation of development programmes is largely dependent on the outcomes of the Peace Agreement. Within the context of its fragile political and economic situation, TMA Strategy 2 will adopt a two-pronged approach, with short term and longer-term goals. In the short term, TMA will focus on private sector-led programmes, which support humanitarian action and which aim to secure livelihoods. For the longer term, TMA will roll out interventions focused on supporting infrastructure development, boosting the productive capacities of identified sectors, and facilitating cross-border trade.
As a priority, TMA will support the government to implement EAC commitments. Full implementation of these commitments is expected to enable businesses 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, TMA will roll out interventions focused on supporting infrastructure development, boosting the productive capacities of identified sectors and facilitating cross- border trade.
Highlights of tmea South Sudan
|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
|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
|Customs Reforms and Modernization and ICT for Trade
|Improved trade systems, agencies & procedures
|Support SS EAC Accession plans
|Strengthened EAC regional trade integration capacity for SS
Highlights of tmea South Sudan
|Better Private Sector-Led Advocacy
|Enhanced environment for business growth; Improved effectiveness and quality of service provision and advocacy
|Enhanced Private Sector Utilization of Efficient Logistics
|Improved quality of logistics service providers; Improved competitiveness of smaller logistics firms
|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 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
South Sudan National Bureau of Standards simplifies and increases the transparency of import/export procedures; producers improve the quality of products produced; bureau of standards staff and producers improve their understanding of standards and requirements. This will in turn lead to the national bureau of standards improving efficiency and effectiveness of...