South Sudan seeks $6.3 billion for economic overhaul

JUBA – South Sudan needs at least $6.3 billion annually until 2030 to accelerate economic reforms and achieve positive growth, the African Development Bank Group said in a report released on Wednesday.

The funds would be used to implement structural reforms, diversify the economy, strengthen exports, and consolidate fiscal policies, according to the “South Sudan Country Focus Report 2024.”

David Chan Thiang, a macro-economist with the African Development Bank Group, said the funds would be crucial for boosting agricultural production and creating a mechanized, labor-intensive economy.

“In order for South Sudan to go forward, we also estimated that there is a need for $6.3 million, or about 85% of GDP annually, that should be leveraged or available until 2030 to accelerate structural reform,” Chan said.

“This structural reform is about agriculture, because now we are at a low agricultural production,” he added.

To bridge the funding gap, Chan proposed increasing the tax-to-GDP ratio to 85.8% by 2030. South Sudan’s current tax-to-GDP ratio is a low 6%, one of the lowest in Africa.