World Bank predicts 5% economic growth for South Sudan
The World Bank has said South Sudan’s economy can grow by 3.5 to 5 per cent if the peace process holds.
This was revealed during the initiation of the 5th edition of South Sudan’s Economic Monitor (SSEM), titled “towards a job agenda.”
The launch was pegged on using the analysis and the data of the publication to generate public debt to inform policymaking.
The previous edition of South Sudan’s economic monitor, according to Firas Raad, Country Manager for South Sudan World Bank, covered topics such as sustainable food security, poverty, and the COVID-19 pandemic.
The publication is in tandem with the recent shift in the World Bank’s engagement in the country towards the government’s implementation of the development projects through an expanded scope of development assistance.
“It focuses on supporting the building of intuitions, strengthening basic service delivery and promoting social inclusion among women and youth,” Raad said.
Challenges
South Sudan has been affected by conflicts, climate and COVID-19 which has had an overwhelming impact on the livelihoods of the communities and businesses. There was also the impact of the locusts on the agriculture sector, which also took its storm on food availability and incomes among the communities
Raad said there are several linings in the economy that are in an early stage of recovery if they are supported by some strong oil revenues as well as continued development assistance.
He said this would also be possible through policy reforms being undertaken by the government, which aim at stabilising microeconomic conditions to improve physical and public finance management systems.
“Our South Sudan Economic monitor is focusing on the positive economic growth of 1.2 per cent in fiscal 2022 driven by microeconomic conditions and improvements in the services in the trade sector,” he said
Raad emphasised that positive growth is in contrast to the negative 5.4 per cent recorded last year when economic growth contracted significantly as a result of the COVID-19 pandemic, as well as floods that ravaged the country.
“We also project that South Sudan’s economy could grow by 3.5 to 5% per cent over the medium-term if the peace process holds. The economic reform programs create positive impact and global and regional economic recovery does not falter,” he said.
“Yet for economic recovery to succeed and to be meaningful, it must be backed by a policy that helps to generate road basic growth in job opportunities, “the World Bank official said
The SSEM has urged the government and development partners to support the recovery of production in agriculture through the provision of inputs and assistance to farmers.
“The government and supporting stakeholders should invest significantly in areas where there is most potential for broader-based productivity gains in business activities by supporting individual household and cooperative activities through cash grants,” Raad said.
