Juba- The African Development Bank (AfDB) has warned that South Sudan’s economy remains highly vulnerable despite a rebound driven by the resumption of oil exports. The bank cited the country’s heavy dependence on oil revenues, weak domestic resource mobilization, and widespread poverty as major obstacles to sustainable economic growth.
Speaking on Wednesday during the launch of the 2026 Country Focus Report at the University of Juba, Acting AfDB Country Manager Fauzia Haji noted that the recent recovery in oil exports has helped revive economic activity, while agriculture continues to support the livelihoods of most South Sudanese.
However, she cautioned that the country’s economic recovery remains fragile.
“The economy has rebounded following the resumption of oil exports, and agriculture continues to provide livelihoods for the majority of the population. Yet significant vulnerabilities remain, including dependence on oil revenue, low domestic resource mobilization, and widespread poverty,” Haji said.
She added that South Sudan faces both significant opportunities and major challenges, including substantial financing gaps that threaten the country’s ability to achieve the United Nations Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.
Haji emphasized, “South Sudan must broaden and diversify its sources of development financing to build a more resilient, inclusive, and sustainable economy. This requires strengthening domestic revenue mobilization, creating an enabling environment for private investment, and leveraging strategic partnerships to unlock true sources of capital.”
The Country Focus Report (CFR), launched under the theme, “Mobilizing South Sudan’s Development Financing at Scale in a Fragmented World,” fosters policy dialogue on the macroeconomic outlook and performance. It also offers insights on mobilizing private sector and capital finance to drive climate resilience and green growth strategies.
Isaac Cleto, the Deputy Vice Chancellor for Academic Affairs at the University of Juba, stated that the Country Focus Report provides specific economic analysis and policy recommendations that support informed decision-making.
“The Country Focus Report is significant. This report comes at a time when South Sudan continues to navigate multiple economic shocks. We must focus on domestic resource mobilization and reforms for inclusive growth to strengthen our economic resilience and improve social services,” said Cleto.
Hoth Chany, the country economist for the African Development Bank, said the Country Focus Report calls for reforms including strengthening financial regulation, capital market infrastructure, and enhancing domestic resource mobilization.
Chany also revealed that South Sudan’s economy remains vulnerable due to oil dependence, economic fragility, and rising humanitarian pressures following shrinking humanitarian aid across the globe.
“There is an increase in oil output, yet other social indicators continue to deteriorate, and employment, poverty levels, and income continue to decline. Because of volatility in economic growth, other indicators have not yet improved,” said Chany.
“We need fiscal stabilization, and we must transform agriculture into an engine of growth to reduce dependence on imports. We need to be investing in agriculture, developing market-oriented approaches, and promoting human capital,” said Chany.
The Country Focus Report, which provides governments and investors with up-to-date and accurate data to inform policy, contains short, medium, and long-term policies to accelerate economic growth and build resilience to shocks.
