## 1ssdea2020001

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---

### Mission overview and context
- STA technical assistance (TA) mission in Juba, South Sudan, during June 17–28, 2019.
- Part of ongoing TA on capacity building in ESS; prior ESS mission: Addis Ababa, Ethiopia, July 30–August 3, 2018.
- Action plan of the 2018 mission largely achieved, including priority recommendations; some 2016 mission action items remain outstanding.
- Reliable ESS essential for informed economic policymaking and to satisfy stakeholders’ data needs.

### Key revisions to the provisional 2018 balance of payments
- Provisional current account balance for 2018 revised from a surplus of US$455.1 million to a deficit of US$348.4 million.
- Goods imports revised upwards by US$1,242.2 million to US$2,053.1 million.
- Services balance revised upwards by US$909.6 million to US$1,370.4 million.
- Deficit on the primary income account revised downward by US$305.3 million, from US$634.5 to US$329.2.
  - Correction: provisional estimates had double-counted profits repatriated by the oil company; double counting was corrected.
- Balance on the secondary income account revised upwards by US$1,029.2 million, from a deficit of US$538.4 million to a surplus of US$490.8 million.
  - Revisions reflect inclusion of estimates of international aid from the UN Office for the Coordination of Humanitarian Affairs (OCHA).

### Oil exports, Transitional Financial Agreement (TFA), and outstanding balances
- BSS compilers now receive monthly data on oil exports from the Ministry of Petroleum (MOP), including price and number of oil barrels per shipment.
- Estimates for transfers under the TFA and payments for transportation, processing, and storage of oil are included in the balance of payments.
- Financial Markets Department of the BSS indicated that as at end-May 2019, US$766.3 million was outstanding under the TFA and the default balances were all paid as at December 2018.

### Recording of imports — findings and statistical adjustments
- Coverage of imports underestimated due to missing import entries, under reporting on invoices, and unrecorded import invoices.
- Customs Department (CD) reported imports of US$810.9 million in 2018 and US$66.0 million for 2017, but data cover only four of 21 entry stations.
  - CD indicated 17 stations do not have customs operations due to security concerns.
- Initial estimate to account for missing stations was 20 percent of imports; mission and BSS revised this estimate to 30 percent.
- Agreement reached that at least 10 percent of import invoices for 2018 are not recorded (unrecorded invoices).
- Initial aggregate estimate for 2018 imports (USD Million / Contribution):
  - Imports from the CD: 810.9 — Contribution 35%
  - Oil Company: 1,008.7 — Contribution 44%
  - Missing Invoices: 243.3 — Contribution 11%
  - Unrecorded invoices: 81.1 — Contribution 4%
  - Under Reporting on invoices: 81.1 — Contribution 4%
  - Government Imports: 81.0 — Contribution 4%
  - Total Imports: 2,306.1 — Contribution 100%
  - Source: BSS and CD.
- Previous estimates of imports were at cost, insurance, and freight (CIF); compilers adjusted to produce estimated imports at free on board (FOB) values by removing freight and insurance components.

### Freight, insurance, and classification adjustments
- CD indicated insurance charges are two percent of the value of imports.
  - Mission included 10 percent of the estimated insurance charges in insurance services debits and 90 percent in current transfers debits.
- CD considered freight cost about seven percent of goods cost; mission estimated freight cost at 10 percent of the cost of imports as an initial estimate.
  - Compilers agreed to reduce imports by 10 percent to remove freight charges and include freight charges in transportation services debits.
- Earlier assumptions included that 70 percent of the oil company’s costs were for imported items; imports for 2018 were updated to include 70 percent of the estimated oil company’s costs as an estimate for their imports.

### Services, aid agencies, and other current account components
- Services debits revised to include estimates for freight charges and services provided by international aid agencies such as the United Nations.
- Mission requested data from international agencies (e.g., UN) on international aid to South Sudan to revise current transfers credits.
- Recommendations included:
  - Inclusion of fees paid by nonresident airlines to the Civil Aviation Authority under transportation services credit.
  - Inclusion of fuel sold to nonresident aircrafts in the balance of payments.

### Exports of timber, scrap materials, and valuation issues
- Primary non-oil exports: timber and scrap materials.
- Detailed monthly CD data available: item description, country of destination, export volume, export value in US dollar and South Sudanese Pound (SSP).
- Compilers instructed to review export information carefully and use US dollar values to compile the balance of payments.
- Valuation problem: if SSP values are converted to US dollar at the official exchange rates for inclusion in the balance of payments, exports will be underestimated.
  - 2018 export conversions: vary from US$1.00=SSP 30.00 to US$1.00=SSP 130.00.
- Recommended action: use US dollar export values from the CD for BOP compilation and avoid converting SSP export values to US dollar using official rates that may understate US dollar values.

### Gold exports (data gaps) and recommended data requests
- Information on gold exports is unavailable.
- Gold mining characteristics:
  - Informal, small scale, extracted from remote/unmonitored areas due to security concerns.
  - Residents extract small quantities and sell in neighboring countries, such as Kenya and Uganda.
- BSS’s Gold Unit: no information on gold exports.
- Recommended actions:
  - Request from the balance of payments compilers in Kenya and Uganda information on gold imports from South Sudan.
  - Request from the EAC available data on gold imports from South Sudan, by member states.
  - Contact the Ministry of Mining and request available information on gold mining in South Sudan.

### Recording of goods and fees related to nonresident airlines
- Current BOP compilation did not include an estimate for goods procured in ports by nonresident airlines; CD has data on importation of jet fuel.
  - Estimation approach: assumed all jet fuel imported by residents were sold to nonresident airlines.
- Civil Aviation Authority provided data on fees paid by nonresident airlines before mission end.
- Recommended actions:
  - Include in the balance of payments an estimate for fuel sold to nonresident airlines using aircraft fuel import data.
  - Include in the balance of payments data on fees paid by nonresident airlines to the Civil Aviation Authority under transportation services credit.

### Recording of international aid (current and capital transfers, services)
- Post-2013 civil unrest: significant aid flows for relief efforts, classified in BOP as current or capital transfers.
- Aid forms: cash and noncash (food, equipment, services), primarily from foreign governments and international organizations (UN and agencies).
- Available BOP data sources: ITRS and CD; allow separation into current transfers and capital transfers.
- Reported figures and revisions:
  - ITRS/CD indicated international aid of US$260.2 million in 2018.
  - 2018 BOP contains an estimate of wages paid to residents by international organizations of US$72.6 million (from ITRS).
  - UN OCHA estimate: South Sudan received international aid of US$1.4 billion in 2018.
  - 2018 BOP previously included US$332.9 million as international aid.
  - Compiler action: UN OCHA’s estimate accepted; additional US$1,067.1 million included in secondary income sub-account to raise 2018 international aid estimate to US$1.4 billion.
  - Assumption used: half of international aid (US$700.0 million) was in the form of services.
- Recommended actions:
  - Revise current transfers credits to include the new estimates of international aid.
  - Revise services debits to include services provided by international aid agencies.
  - Request from international agencies such as the UN, data at least annually on aid to South Sudan.

### Transitional Financial Agreement (TFA) with Sudan — recording and payments
- September 2012 agreement: GoSS and GoS agreed arrangements on oil and related matters.
  - South Sudan agrees to transfer US$3.028 billion to Sudan, at a rate of US$15.00 per oil barrel redelivered to the GoSS and lifted at Port Sudan.
  - GoS issues invoice after oil lifted and bill of lading issued; payments due within 40 days from date of bill of lading.
- 2016 agreement modifications include daily purchase/sale volumes between 8,000 and 28,000 barrels and price/fee arrangements; interest on overdue amounts set at two percent above the 6-month LIBOR calculated for each day of delay, compounded monthly.
- As at end December 2018, all default balances by South Sudan were paid.
  - Financial Markets Department of BSS: US$157.0 million was paid to the GoS as default balances under the TFA for August 2017 to December 2018 (not disaggregated into principal and interest).
- Recommended actions:
  - Follow up with MOF and MOP to determine if interest was charged on default balances; if charged, disaggregate payments into principal and interest.
  - Request from MOF disaggregation of payments on default balances into amounts paid in 2017 and amounts paid in 2018.
  - Include principal payments in accounts payable of the financial account.
  - Include interest payments in the primary income account of the current account.

### Accounting for government external transactions
- MOF lacks a database on external transactions of the Government.
- Debt Management Unit staff are willing to share data but lack records due to absence of a database.
- Recommended actions:
  - Request from the MOF data on loans received from nonresidents.
  - Request from the MOF data on loan repayments to nonresidents.
  - Request from the MOF data on interest payments to nonresidents.
  - Follow up with the Financial Markets Department of the BSS for data on external transactions of the Government facilitated by the BSS.

### International Reserves and Foreign Currency Liquidity (IRFCL) template and reserves classification
- BSS has data on official reserve assets, including Special Drawing Rights (SDRs).
  - Holdings of SDRs are not included in the estimates of official reserves in monetary and financial statistics.
  - Guidance: SDR classification in ESS and monetary and financial statistics should be the same if BSS is the official SDR holder.
- Official reserve assets do not include gold holdings of the BSS; gold classified on BSS balance sheet as a nonfinancial asset.
- BSS lacks information on short-term net drains on foreign currency assets.
- Compilers to develop estimates of short-term net drains using Financial Markets Department worksheet on monthly FX inflows and outflows with horizons:
  - one month
  - two to three months
  - four to twelve months
- Recommended actions:
  - Use available data on reserves to complete the asset section of the IRFCL template.
  - Review recording of SDRs in monetary and financial statistics and ESS, and implement consistent classification.
  - Develop estimates for reserve inflows and outflows for one month, two to three months, and four to twelve months.
  - Submit through the ICS the IRFCL, including estimates of predetermined short-term net drains on foreign currency assets.

### Visitor expenditure survey and estimation of visitor numbers and spending
- Work program developed for a visitor expenditure survey, including a survey instrument (Appendix IV).
- Permission to survey departing passengers at airport departure lounges should be requested from the Airport Authority.
- Compilers indicated survey might be feasible on a quarterly basis.
- Compilers have no data on number of visitors; visitors must register with Immigration Department and pay a registration fee of US$15.00.
- Recommended actions:
  - Request from the Airport Authority permission to conduct a survey of visitors at the departure lounges.
  - Conduct a survey of departing nonresident visitors requesting information on expenditure in South Sudan, nights spent, and purpose of visit.
  - Follow up with the Director General of the Immigration Department for monthly visitor numbers.
  - Use Immigration Department visitor numbers, average length of stay, and average expenditure per person per day to compute and include estimated visitor expenditure in the balance of payments accounts.

### Harmonization with EAC member states
- EAC Secretariat working to harmonize BOP compilation methodology and dissemination practices for EAC regional BOP accounts.
- South Sudan became a full member of the EAC on August 15, 2016.
- Compilation of regional BOP accounts for EAC member states is part of the work program to create The East Africa Monetary Union by 2024.
- Recommended actions:
  - Request from the EAC Secretariat available data on transactions of residents of other EAC member states with residents of South Sudan.
  - Request from other EAC member states data on transactions of their residents with residents of South Sudan.

### Priority recommendations (high-impact, near-term)
- Revise provisional BOP estimates compiled for 2018 (Target Date: September 2019; Responsible: BSS):
  - Amend data on imports from the Customs Department (CD) to include an estimate for missing import entries.
  - Current transfers credits to include the new estimates of international aid.
- Conduct a survey of departing nonresident visitors (Target Date: September 2019; Responsible: BSS).
- Submit the IRFCL, including the estimates of predetermined short-term net drains on foreign currency assets (Target Date: December 2019; Responsible: BSS).

### Selected high-priority actions and target completion dates (from the detailed action plan)
- Request from balance of payments compilers in Kenya and Uganda the percentage of imports used to estimate freight charges. (September 2019) — H
- Develop an estimate of the cost of transporting goods to the country by adding to the average freight cost for Kenya and Uganda the cost of transporting goods from these countries to South Sudan. (September 2019) — H
- Deduct from imports an estimate for freight charges and include those freight charges in transportation services debits. (September 2019) — H
- Deduct from imports the estimate for insurance charges; include in insurance services 10 percent of estimated insurance charges and include in current transfers 90 percent. (September 2019 / Ongoing) — H
- Request from international agencies such as the UN data on international aid to South Sudan. (August 2019) — H
- Follow up with the MOF to determine if interest was charged on default balances and, if so, disaggregate principal and interest payments. (August 2019) — H
- Request from the MOF data on loans received from nonresidents, loan repayments to nonresidents, and interest payments to nonresidents. (August 2019) — H
- Use available data on reserves to complete the asset section of the IRFCL template and develop estimates for reserve inflows and outflows for one month, two to three months, and four to twelve months. (September 2019 / December 2019) — H
- Request permission from the Airport Authority to conduct a survey of visitors at departure lounges and follow up with Immigration Department for monthly visitor counts. (August–September 2019) — H / PR
- Request from the East African Community (EAC) Secretariat available data on transactions of residents of other EAC member states with residents of South Sudan and follow up with other EAC members. (September 2019 and Ongoing) — H
- Nominate staff involved in ESS compilation for training at the IMF’s Africa Training Institute and refrain from transferring staff knowledgeable in ESS compilation. (Ongoing) — H

### Implementation status and next steps
- Significant progress made on 2018 recommendations; most recommendations, including priority ones, achieved.
- Some 2016 mission recommendations remain outstanding due to capacity constraints, inadequate respondent databases, and lack of a data-sharing culture.
- Mission provided hands-on training to compilers and met with entities holding required information; subsequent missions will continue to assist compilers to implement outstanding recommendations, focusing on recommendations affecting large transactions.

### Training needs and officials met
- Finding: BSS staff acknowledged urgent need for training of balance of payments compilers.
  - Recommended action: nominate staff for ESS training at the IMF’s Africa Training Institute and refrain from transferring staff knowledgeable in ESS.
- Officials met during the mission included senior BSS staff, Customs Department, Civil Aviation Authority, Ministry of Finance & Economic Planning staff, and National Bureau Statistics representatives (full list in mission documentation).

### Key balance of payments and capital account statistics (Appendix I: Revised Current and Capital Account 2018)
- Current Account Balance: 455.1 (348.4) (830.5)
- Goods:
  - Credits: 2,899.8
  - Debits: 810.9
  - Net: 2,088.9
  - Revised Credits: 2,913.6
  - Revised Debits: 2,053.1
  - Revised Net: 860.5
  - Difference: 13.8 1,242.2 (1,228.4)
- Exports:
  - Credits: 2,899.8
  - Revised Credits: 2,913.6
  - Difference: 13.8
- Imports:
  - Debits: 810.9
  - Revised Debits: 2,053.1
  - Note: Imports at CIF values. 2 Imports at F.O.B. values.
- Services:
  - Credits: 142.9
  - Debits: 603.7
  - Net: (460.8)
  - Revised Credits: 148.2
  - Revised Debits: 1,518.6
  - Revised Net: (1,370.4)
  - Difference: 5.3 914.9 (909.6)
- Primary Income:
  - Credits: 86.1
  - Debits: 720.5
  - Net: (634.5)
  - Revised Credits: 86.1
  - Revised Debits: 415.2
  - Revised Net: (329.2)
  - Difference: (305.3) 305.3
- Secondary Income:
  - Credits: 186.3
  - Debits: 724.8
  - Net: (538.4)
  - Revised Credits: 1,253.5
  - Revised Debits: 762.7
  - Revised Net: 490.8
  - Difference: 1,067.1 37.9 1,029.2
- Capital Account Balance:
  - Credits: 155.4
  - Debits: 2.4
  - Net: 153.0
  - Capital Transfers: 155.4 credits, 2.4 debits, net 153.0
  - General government: 147.9 credits, 1.6 debits, net 146.2
  - Other Sectors: 7.6 credits, 0.8 debits, net 6.8
- Current and Capital Account Balance: 608.1 (195.3) (803.5)

*Source: IMF STA technical assistance mission report to the Bank of South Sudan (June 17–28, 2019).*

### 1.      To support the Bank of South Sudan (BSS) in improving external sector statistics

### 1.      To support the Bank of South Sudan (BSS) in improving external sector statistics

### Mission overview and context
- STA conducted a technical assistance (TA) mission in Juba, South Sudan, during June 17–28, 2019.
- This mission is part of ongoing TA on capacity building in ESS. The last ESS mission took place in Addis Ababa, Ethiopia, during July 30 to August 3, 2018.
- The action plan of the 2018 mission was largely achieved, including priority recommendations; some action items from the 2016 mission remain outstanding.
- Reliable ESS are essential for informed economic policymaking and to satisfy stakeholders’ data needs.

### Key revisions to the provisional 2018 balance of payments
- Provisional current account balance for 2018 revised from a surplus of US$455.1 million to a deficit of US$348.4 million.
- Goods imports were revised upwards by US$1,242.2 million to US$2,053.1 million.
- Services balance was revised upwards by US$909.6 million to US$1,370.4 million.
- Deficit on the primary income account revised downward by US$305.3 million, from US$634.5 to US$329.2.
  - Correction: provisional estimates had double-counted profits repatriated by the oil company; double counting was corrected.
- Balance on the secondary income account revised upwards by US$1,029.2 million, from a deficit of US$538.4 million to a surplus of US$490.8 million.
  - Revisions reflect inclusion of estimates of international aid from the UN Office for the Coordination of Humanitarian Affairs (OCHA).

### Oil exports, Transitional Financial Agreement (TFA), and outstanding balances
- BSS compilers now receive monthly data on oil exports from the Ministry of Petroleum (MOP), including price and number of oil barrels per shipment.
- Estimates for transfers under the TFA and payments for the transportation, processing, and storage of oil are included in the balance of payments.
- Financial Markets Department of the BSS indicated that as at end-May 2019, US$766.3 million was outstanding under the TFA and the default balances were all paid as at December 2018.

### Recording of imports — findings and statistical adjustments
- Coverage of imports was underestimated due to missing import entries, under reporting on invoices, and unrecorded import invoices.
- Customs Department (CD) reported imports of US$810.9 million in 2018 and US$66.0 million for 2017, but data cover only four of 21 entry stations.
  - CD indicated 17 stations do not have customs operations due to security concerns.
- Initial estimate to account for missing stations was 20 percent of imports; mission and BSS revised this estimate to 30 percent.
- Agreement reached that at least 10 percent of import invoices for 2018 are not recorded (unrecorded invoices).
- As an initial aggregate estimate, imports were increased to include:
  - Imports from the CD: 810.9 (USD Million) — Contribution 35%
  - Oil Company: 1,008.7 (USD Million) — Contribution 44%
  - Missing Invoices: 243.3 (USD Million) — Contribution 11%
  - Unrecorded invoices: 81.1 (USD Million) — Contribution 4%
  - Under Reporting on invoices: 81.1 (USD Million) — Contribution 4%
  - Government Imports: 81.0 (USD Million) — Contribution 4%
  - Total Imports: 2,306.1 (USD Million) — Contribution 100%
  - Source: BSS and CD.
- Previous estimates of imports were at cost, insurance, and freight (CIF); compilers adjusted to produce estimated imports at free on board (FOB) values by removing freight and insurance components.

### Freight, insurance, and classification adjustments
- CD indicated insurance charges are two percent of the value of imports.
  - Mission included 10 percent of the estimated insurance charges in insurance services debits and 90 percent in current transfers debits.
- CD considered freight cost about seven percent of goods cost; mission estimated freight cost at 10 percent of the cost of imports as an initial estimate.
  - Compilers agreed to reduce imports by 10 percent to remove freight charges and include freight charges in transportation services debits.
- Earlier assumptions included that 70 percent of the oil company’s costs were for imported items; imports for 2018 were updated to include 70 percent of the estimated oil company’s costs as an estimate for their imports.

### Services, aid agencies, and other current account components
- Services debits were revised to include estimates for freight charges and services provided by international aid agencies such as the United Nations.
- The mission requested data from international agencies (e.g., UN) on international aid to South Sudan to revise current transfers credits.
- Recommendations included inclusion of fees paid by nonresident airlines to the Civil Aviation Authority under transportation services credit and inclusion of fuel sold to nonresident aircrafts in the balance of payments.

### Inter-agency cooperation, data sources, and surveys
- Inter-agency cooperation emphasized as critical to build sound data collection for ESS.
  - Mission met with selected public sector bodies to provide an overview of BOP and requested data.
  - Civil Aviation Authority provided requested data before mission end.
  - Debt Management Unit (MOF) willing to share government external transactions data but has data gaps due to lack of a proper database; mission recommended monthly follow-up with MOF.
- A draft form was produced to conduct a visitor expenditure survey (survey of departing nonresident visitors) to estimate visitor expenditure.
- A preliminary International Reserves and Foreign Currency Liquidity (IRFCL) template was submitted to STA for review; template includes reserve assets but information on current short-term net drains unavailable.

### Priority recommendations (high-impact, near-term)
- Revise the provisional balance of payments estimates compiled for 2018 as follows (Target Date: September 2019; Responsible: BSS):
  - Amend data on imports from the Customs Department (CD) to include an estimate for missing import entries.
  - Current transfers credits to include the new estimates of international aid.
- Conduct a survey of departing nonresident visitors (Target Date: September 2019; Responsible: BSS).
- Submit the IRFCL, including the estimates of predetermined short-term net drains on foreign currency assets (Target Date: December 2019; Responsible: BSS).

### Selected high-priority actions and target completion dates (from the detailed action plan)
- Request from balance of payments compilers in Kenya and Uganda the percentage of imports used to estimate freight charges. (September 2019) — H
- Develop an estimate of the cost of transporting goods to the country by adding to the average freight cost for Kenya and Uganda the cost of transporting goods from these countries to South Sudan. (September 2019) — H
- Deduct from imports an estimate for freight charges and include those freight charges in transportation services debits. (September 2019) — H
- Deduct from imports the estimate for insurance charges; include in insurance services 10 percent of estimated insurance charges and include in current transfers 90 percent. (September 2019 / Ongoing) — H
- Request from international agencies such as the UN data on international aid to South Sudan. (August 2019) — H
- Follow up with the MOF to determine if interest was charged on default balances and, if so, disaggregate principal and interest payments. (August 2019) — H
- Request from the MOF data on loans received from nonresidents, loan repayments to nonresidents, and interest payments to nonresidents. (August 2019) — H
- Use available data on reserves to complete the asset section of the IRFCL template and develop estimates for reserve inflows and outflows for one month, two to three months, and four to twelve months. (September 2019 / December 2019) — H
- Request permission from the Airport Authority to conduct a survey of visitors at departure lounges and follow up with Immigration Department for monthly visitor counts. (August–September 2019) — H / PR
- Request from the East African Community (EAC) Secretariat available data on transactions of residents of other EAC member states with residents of South Sudan and follow up with other EAC members. (September 2019 and Ongoing) — H
- Nominate staff involved in ESS compilation for training at the IMF’s Africa Training Institute and refrain from transferring staff knowledgeable in ESS compilation. (Ongoing) — H

### Implementation status and next steps
- Significant progress made on 2018 recommendations; most recommendations, including priority ones, achieved.
- Some 2016 mission recommendations remain outstanding due to capacity constraints, inadequate respondent databases, and lack of a data-sharing culture.
- Mission provided hands-on training to compilers and met with entities holding required information; subsequent missions will continue to assist compilers to implement outstanding recommendations, focusing on recommendations affecting large transactions.

*Source: IMF STA technical assistance mission report to the Bank of South Sudan (June 17–28, 2019).*

### 21.      The primary non-oil exports are timber and scrap materials. The balance of payments

### 21.      The primary non-oil exports are timber and scrap materials. The balance of payments

### Exports of timber, scrap materials, and valuation issues
- Primary non-oil exports: timber and scrap materials.
- Detailed monthly CD data available: item description, country of destination, export volume, export value in US dollar and South Sudanese Pound (SSP).
- Compilers instruction: review export information carefully and use US dollar values to compile the balance of payments.
- Valuation problem: if SSP values are converted to US dollar at the official exchange rates for inclusion in the balance of payments, exports will be underestimated.
- 2018 export conversions: vary from US$1.00=SSP 30.00 to US$1.00=SSP 130.00.
- CD could not provide reasons for the varied exchange rates used to value exports.
- Recommended Actions:
  - Use US dollar export values from the CD for BOP compilation (implied by text).
  - Review and avoid converting SSP export values to US dollar using official rates that may understate US dollar values.

### Gold exports (data gaps and recommended data requests)
- Information on gold exports is unavailable.
- Gold mining characteristics:
  - Informal, small scale, extracted from remote/unmonitored areas due to security concerns.
  - Residents extract small quantities and sell in neighboring countries, such as Kenya and Uganda.
  - Possible nonresident involvement, but no data to validate.
- BSS’s Gold Unit: no information on gold exports.
- UN OCHA / EAC outreach: BSS compilers agreed to contact EAC and request data on gold imports by other member states from South Sudan.
- Recommended Actions:
  - Request from the balance of payments compilers in Kenya and Uganda information on gold imports from South Sudan.
  - Request from the EAC available data on gold imports from South Sudan, by member states.
  - Contact the Ministry of Mining and request available information on gold mining in South Sudan.

### Recording of goods procured in ports by nonresident airlines
- Current BOP compilation does not include an estimate for goods procured in ports by nonresident airlines (recommendation from 2016 work program).
- Available data: CD data on importation of jet fuel.
- Estimation approach used: assumed all jet fuel imported by residents were sold to nonresident airlines.
- Recommended Actions:
  - Include in the balance of payments an estimate for fuel sold to nonresident airlines.
  - Use data on aircraft fuel imports to develop the estimate.
  - Request data from sellers of aircraft fuel on fuel sold to nonresident airlines.

### Recording of fees paid by nonresident airlines
- BOP previously lacked an estimate of fees paid by nonresident airlines (recommended by 2016 ESS mission).
- Civil Aviation Authority has data; permission granted to provide to BSS.
- BSS received data on fees paid by nonresident airlines before end of mission.
- Recommended Action:
  - Include in the balance of payments data on fees paid by nonresident airlines to the Civil Aviation Authority under transportation services credit.

### Recording of international aid (current and capital transfers, services)
- Post-2013 civil unrest: significant aid flows for relief efforts, classified in BOP as current or capital transfers.
- Aid forms: cash and noncash (food, equipment, services), primarily from foreign governments and international organizations (UN and agencies).
- Available BOP data sources: ITRS and CD; allow separation into current transfers and capital transfers.
- Reported figures:
  - Data from ITRS/CD indicated international aid of US$260.2 million in 2018.
  - 2018 BOP contains an estimate of wages paid to residents by international organizations of US$72.6 million (from ITRS).
  - No BOP estimates for international aid provided in the form of services, though services aid (peace keeping, transportation) is significant.
  - MOF Aid Coordination Unit lacks a database; latest report corresponds to 2012/13 when US$1.4 billion was committed.
  - UN OCHA estimate: South Sudan received international aid of US$1.4 billion in 2018.
  - 2018 BOP previously included US$332.9 million as international aid.
- Compiler action: UN OCHA’s estimate accepted; additional US$1,067.1 million included in secondary income sub-account to raise 2018 international aid estimate to US$1.4 billion.
- Assumption used: half of international aid (US$700.0 million) was in the form of services.
- Note: Some aid bypasses government; MOF may not have complete data.
- Recommended Actions:
  - Revise current transfers credits to include the new estimates of international aid.
  - Revise services debits to include services provided by international aid agencies.
  - Request from international agencies such as the UN, data at least annually on aid to South Sudan.

### Transitional Financial Agreement (TFA) with Sudan — recording and payments
- Purpose: cushion for Sudan against economic shock from South Sudan secession and oil revenue loss.
- September 2012 agreement: GoSS and GoS signed on oil and related matters.
- Under the agreement:
  - South Sudan agrees to transfer US$3.028 billion to Sudan, at a rate of US$15.00 per oil barrel redelivered (the volume available to South Sudan after processing) to the GoSS and lifted at the marine terminal on board vessels at Port Sudan.
  - GoS issues invoice after oil lifted and bill of lading issued; payments due within 40 days from date of bill of lading.
  - Default notice mechanism if transfers not made within specified period.
- 2016 agreement modifications:
  - GoS agrees to purchase between 8,000 barrels and 28,000 barrels of oil each day from the GoSS; GoSS agrees to sell between 8,000 barrels and 28,000 barrels each day.
  - Prior to each month, both parties agree daily purchase/sale volume.
  - GoS pays FOB prices; GoSS pays fees for transit, processing, transportation and TFA.
  - GoS may offset amounts due to GoSS with balances due to Sudan under the TFA.
  - Post-payment outstanding balances: GoSS may send default notice to GoS, amounts to be settled within two weeks; GoSS may suspend delivery if breach not remedied.
  - Interest on overdue amounts: rate equal to two percent above the 6-month LIBOR calculated for each day of delay, compounded monthly.
- Payments and accounting:
  - As at end December 2018, all default balances by South Sudan were paid.
  - Financial Markets Department of BSS: US$157.0 million was paid to the GoS as default balances under the TFA for August 2017 to December 2018 (not disaggregated into principal and interest).
- Recommended Actions:
  - Follow up with MOF and MOP to determine if interest was charged on default balances; if charged, disaggregate payments into principal and interest.
  - Request from MOF disaggregation of payments on default balances into amounts paid in 2017 and amounts paid in 2018.
  - Include principal payments in accounts payable of the financial account.
  - Include interest payments in the primary income account of the current account.

### Accounting for Government external transactions
- MOF lacks a database on external transactions of the Government.
- Mission requested data from MOF’s Debt Management Unit on loans received from nonresidents, repayments, and interest payments.
- Debt Management Unit staff are willing to share data but lack records due to absence of a database.
- Recommended Actions:
  - Request from the MOF data on loans received from nonresidents.
  - Request from the MOF data on loan repayments to nonresidents.
  - Request from the MOF data on interest payments to nonresidents.
  - Follow up with the Financial Markets Department of the BSS for data on external transactions of the Government facilitated by the BSS.

### International Reserves and Foreign Currency Liquidity (IRFCL) template and reserves classification
- BSS has data on official reserve assets, including Special Drawing Rights (SDRs).
- Holdings of SDRs are not included in the estimates of official reserves in monetary and financial statistics.
- Classification guidance: SDR classification in ESS and monetary and financial statistics should be the same if BSS is the official SDR holder.
- Mission assisted compilers to remove small holdings of Kenya’s and Uganda’s Shillings from assets.
- Official reserve assets do not include gold holdings of the BSS; gold classified on BSS balance sheet as a nonfinancial asset.
- BSS lacks information on short-term net drains on foreign currency assets.
- Compilers to develop estimates of short-term (one month, two to three months, and for four to twelve months) net drains using Financial Markets Department worksheet on monthly FX inflows and outflows.
- Estimation methodology suggestions:
  - Estimate monthly average inflows and outflows from available data and use as future-month estimates.
  - Improve outflow estimates by including projections for principal and interest payments by Government on nonresident loans.
  - Improve inflow estimates by including projections for loan receipts by Government from nonresidents.
- IRFCL template utility: assess adequacy of reserves to meet short-term liquidity needs of BSS.
- Status: BSS has started compiling IRFCL template; preliminary template produced and shared with STA; mission worked to access template for official submission to ICS.
- Recommended Actions:
  - Use available data on reserves to complete the asset section of the IRFCL template.
  - Review recording of SDRs in monetary and financial statistics and ESS, and implement consistent classification.
  - Develop estimates for reserve inflows and outflows for one month.
  - Develop estimates for reserve inflows and outflows for two to three months.
  - Develop estimates for reserve inflows and outflows for four to twelve months.
  - Submit through the ICS the IRFCL, including estimates of predetermined short-term net drains on foreign currency assets.

### Visitor expenditure survey and estimation of visitor numbers and spending
- Work program developed for a visitor expenditure survey, including a survey instrument (Appendix IV).
- Permission to survey departing passengers at airport departure lounges should be requested from the Airport Authority.
- Compilers indicated survey might be feasible on a quarterly basis.
- Compilers have no data on number of visitors; visitors must register with Immigration Department and pay a registration fee of US$15.00.
- Mission met with Director of Immigration; compilers directed to request visitor numbers from Director General of Immigration Department.
- Recommended Actions:
  - Request from the Airport Authority permission to conduct a survey of visitors at the departure lounges.
  - Conduct a survey of departing nonresident visitors requesting information on expenditure in South Sudan, nights spent, and purpose of visit.
  - Follow up with the Director General of the Immigration Department for monthly visitor numbers.
  - Use Immigration Department visitor numbers, average length of stay, and average expenditure per person per day to compute and include estimated visitor expenditure in the balance of payments accounts.

### Harmonization with EAC member states
- EAC Secretariat is working with member states, including South Sudan, to harmonize BOP compilation methodology and dissemination practices to create balance of payments accounts for the EAC region.
- EAC mission visited BSS, assessed compilation and dissemination practices, and provided recommendations for reporting to the Secretariat.
- One recommendation: develop estimates of transactions with other EAC members; such intra-EAC transactions will be excluded from regional aggregate BOP accounts.
- Contextual dates and goals:
  - South Sudan became a full member of the EAC on August 15, 2016.
  - Compilation of regional BOP accounts for EAC member states is a component of the work program to create The East Africa Monetary Union by 2024.
- Recommended Actions:
  - Request from the EAC Secretariat available data on transactions of residents of other EAC member states with residents of South Sudan.
  - Request from other EAC member states data on transactions of their residents with residents of South Sudan.

### Technical assistance and capacity development
- BSS committed to implementing prior TA recommendations and indicated additional TA needed for further developing ESS.
- Mission view: a follow-up TA mission could be fielded once BSS makes progress implementing recommendations, with a primary focus on priority actions.

*Source: IMF mission report text (excerpt) provided in content unit 1ssdea2020001.*

### 41.      The BSS staff acknowledged the urgent need for training of balance of payments

### 1ssdea2020001 - 41.      The BSS staff acknowledged the urgent need for training of balance of payments

### Training needs and recommended actions
- Finding: The BSS staff acknowledged the urgent need for training of balance of payments compilers. BSS is encouraged to nominate staff for future training in ESS, offered by the IMF’s Africa Training Institute. The mission discussed with the staff of the Research and Statistics Department, including the Deputy Director, the importance of retaining staff trained in the compilation of ESS.
- Recommended Action:
  - Nominate staff involved in the compilation of ESS for training courses on ESS at the IMF’s Africa Training Institute.
  - Refrain from transferring staff that is knowledgeable in the compilation of ESS to other areas of the Bank.

### Officials met during the mission
- Bank of South Sudan:
  - Albino Dak Othow 1st Deputy Governor
  - Moses Makur Deng Director General for Supervision, Research and Statistics Department
  - Marial Mabeny Bawour Director for Financial Markets Department
  - Chan Andrea Chan Deputy Director, Financial Markets Department
  - Charles Abugo Joseph Deputy Director Research and Statistics Department
  - Catherine Kapuki Patrick Head of Statistics Division, Research and Statistics Department
  - Tunna William Amoi Mabior Head of External Sector Statistics, Research and Statistics Department
  - Charles Lado James Bank officer, External Sector Statistics, Research and Statistics Department
  - Amule Jackson Scopas Bank officer, External Sector Statistics, Research and Statistics Department
  - Peter Majok Chiengan Head of Middle Office, Financial Markets Department
  - Kerubino Akuai Manyiel Act. Head of Monetary Statistics, Research and Statistics Department
  - Peter Mading Malual Senior Bank officer, Middle office, Financial Markets Department
  - Lomini Mathias Bank officer, Front office, Financial Markets
  - Jamal Lado James Bank officer, Debt Management, Financial Markets
  - Monaliza Twong Dak Senior Bank officer, External Sector Statistics, Research and Statistics Department
  - Stephen Keah Luony Jony Bank Officer, Policy Research and Analysis Division
  - Lokang O. Philip Bank officer, Front office, Financial Markets
- Other institutions:
  - South Sudan Customs Department: Jokonda Anthony Director for Statistics, Custom Division South Sudan- Juba; Samuel Matoya Bandas Custom Officer, Custom Division, South Sudan- Juba
  - South Sudan Civil Aviation Authority: Simon Leeka Wure Director General for Administration and Finance; Amos Makuei Thon Finance Manager, Juba Airport
  - Ministry of Finance & Economic Planning: Arop Nuoi Arop Director of Aid Coordination Unit; John Kenyi Eyabo Head of Debt Management Unit; Chol M. Agoot Deputy Director of Aid Coordination; Lwiza M. K. Deng Senior Inspector Aid Coordination Unit; Monica Santino Inspector Aid Coordination Unit; Nyantiop Martha Agoot Macroeconomic Department; David Manyok Officer, Debt Management Unit; Adel William Garang Inspector Macroeconomic Department; Elizabeth Adhel Ngor Inspector Macroeconomic Department; Wilma John Onarato Inspector Macroeconomic Department; Hellen Charengo Paul Inspector Debt Management Unit; Juliet Acheing Richard Inspector Debt Management Unit
  - National Bureau Statistics: David Chan Thiang Director

### Key balance of payments and capital account statistics (Appendix I: Revised Current and Capital Account 2018)
- Current Account Balance: 455.1 (348.4) (830.5)
- Goods:
  - Credits: 2,899.8
  - Debits: 810.9
  - Net: 2,088.9
  - Revised Credits: 2,913.6
  - Revised Debits: 2,053.1
  - Revised Net: 860.5
  - Difference: 13.8 1,242.2 (1,228.4)
- Exports:
  - Credits: 2,899.8
  - Revised Credits: 2,913.6
  - Difference: 13.8
- Imports:
  - Debits: 810.9
  - Revised Debits: 2,053.1
  - Note: Imports at CIF values. 2 Imports at F.O.B. values.
- Services:
  - Credits: 142.9
  - Debits: 603.7
  - Net: (460.8)
  - Revised Credits: 148.2
  - Revised Debits: 1,518.6
  - Revised Net: (1,370.4)
  - Difference: 5.3 914.9 (909.6)
- Primary Income:
  - Credits: 86.1
  - Debits: 720.5
  - Net: (634.5)
  - Revised Credits: 86.1
  - Revised Debits: 415.2
  - Revised Net: (329.2)
  - Difference: (305.3) 305.3
- Secondary Income:
  - Credits: 186.3
  - Debits: 724.8
  - Net: (538.4)
  - Revised Credits: 1,253.5
  - Revised Debits: 762.7
  - Revised Net: 490.8
  - Difference: 1,067.1 37.9 1,029.2
- Capital Account Balance:
  - Credits: 155.4
  - Debits: 2.4
  - Net: 153.0
  - Capital Transfers: 155.4 credits, 2.4 debits, net 153.0
  - General government: 147.9 credits, 1.6 debits, net 146.2
  - Other Sectors: 7.6 credits, 0.8 debits, net 6.8
- Current and Capital Account Balance: 608.1 (195.3) (803.5)

### Status of the 2018 Action Plan (selected outcomes and actions)
- Outcome: Source data are adequate for the compilation of these macroeconomic statistics (Target Completion Date: April 22, 2019)
- Key achieved actions (with target completion dates as listed):
  - Revise the 2014 balance of payments and disseminate the revised estimates for 2014 to 2017. — January 2019 — Achieved
  - Monitor activities surrounding the oil pipeline (South Sudan to Sudan) — Ongoing — Achieved
  - Include in the balance of payments data on oil exported through the second pipeline and related transactions — March 2019 — The BSS to follow up with the MOP; first shipment from this line was December 2018.
  - Obtain from the MOP data on the number of barrels of oil exported for 2018 and onwards — March 2019 — Achieved
  - Obtain from the MOP data on the price of oil shipped, per shipment for 2018 and onwards — March 2019 — Achieved
  - Use information on price per shipment to estimate value of each shipment of oil for 2018 and onwards — March 2019 — Achieved
  - Compute monthly average price for oil exports and use to estimate value of oil exports to Sudan for 2018 and onwards — March 2019 — Achieved
  - Use data from the MOP to estimate total value of oil exports and include in BOP for 2018 onwards — March 2019 — Achieved
  - Multiply total volume of oil exported by US$6.50 and include amount in transport services debit for 2018 and future BOP statistics — March 2019 — Achieved
  - Multiply total volume of oil exported by US$1.60 and include amount in manufacturing services on physical inputs owned by other debits for 2018 and future BOP statistics — March 2019 — Achieved
  - Multiply total volume of oil exported by US$1.00 and include amount in other services debits for 2018 and future BOP statistics — March 2019 — Achieved
  - Estimate profits of the joint venture company due to nonresidents and include in direct investment income debits for 2018 and future BOP statistics — March 2019 — Achieved
  - Multiply total volume of oil exported by US$15.00 under the TFA and include amount in current transfers debits until total value of transfers is US$3.028 billion — Ongoing — Achieved
  - Contact MOP and MOF for information on default balances and liquidation damages for each year under the TFA — Ongoing — Achieved
  - Include net change in value of default balances for each year in financial account under accounts payable — Ongoing — Information on payment of default balances received during the 2019 mission; separation by year and by interest vs principal required
  - Include value of liquidation damages in primary income account under interest payments — Ongoing
  - Contact MOP and MOF for information and details of the amended TFA, including implementation date, and modify recording if required — March 2019 — Achieved
  - Obtain data on noncash grants from the Customs Services on a continuous basis — Ongoing — Achieved
  - Revise ratio used to adjust estimates of humanitarian aid on a continuous basis — Ongoing — Achieved
  - Revise 2014 BOP to include estimate of noncash humanitarian aid — January 2019 — PR (status)
  - Include data on noncash humanitarian aid from Customs Services in BOP for 2018 and future estimates — March 2019 — Achieved
  - Obtain from Customs Services available data on price and volume of imported items and re-estimate total value of imports for inclusion in BOP — Ongoing — Achieved
  - Nominate staff involved in the compilation of ESS for training courses on ESS at the IMF’s Africa Training Institute and the IMF’s HQs — Ongoing — Ongoing

### Status of the 2016 Action Plan (selected priorities and progress)
- Legal and institutional environment:
  - Strengthen BSS Act to enable collection of data from the nonbank sector — Ongoing (To be done the BSS & The NBS shares data)
  - Demarcate mandates of the BSS and the NBS in ESS compilation by signing an MOU — MOU signed April 2017 — The compilers will follow up
  - Hold monthly MMSWG meetings for cooperation among agencies — Ongoing — Meetings were conducted but has stopped
  - (NBS) Share data and methodologies with the BSS to ensure ESS consistency with 2008 SNA — Ongoing
  - Continue internal workshops for sharing knowledge among BSS staff — Ongoing but limited
- Data collection and compilation (selected high-priority items):
  - Follow up with 12 non-reporting commercial banks to report ITRS data properly and encourage electronic submission — Ongoing — Non-reporting banks decreased to 6 but only 5 report electronically
  - Follow up with major forex bureaus to obtain detailed information to avoid double counting of ITRS data — July 2016 — Done
  - Request data from BSS SWIFT Unit on receipts transactions from nonresidents — July 2016 — Done
  - Incorporate corrections for informal trade into 2015 BOP and submit via ICS — August 2016 — Done
  - Revise 2012 and 2013 BOP and submit via ICS — August 2016 — Not yet
  - Complete list of international organizations and foreign embassies and send questionnaires — August 2016 — Done
  - Collect data on remuneration paid to resident staff by international agencies and embassies — September 2016 — Done
  - Conduct annual DI survey based on registered DI enterprises — November 2016 — Not yet
  - Obtain ITRS data from BSS SWIFT section in electronic format in addition to hard copy — November 2016 — Not Yet
  - Collect airport-related fees paid by nonresidents — November 2016 — Information received during the 2019 mission following discussions with Civil Aviation Department
  - Estimate fuel to nonresident airlines — November 2016 — Estimate developed during the 2019 mission
  - Develop visitor expenditure survey and surveys of departing airline passengers — November 2016 — A work program for a visitor expenditure survey was developed during the 2019 mission
  - Follow up with MOFEP to obtain official current and capital aid in kind and cash — November 2016 — Completed during the 2019 mission
- Note: Priority Scale used in action plans: H – High; M – Medium; L – Low.

### Appendix IV — Draft survey instrument to survey departing visitors (Bank of South Sudan)
- Purpose: To collect data to improve external sector statistics coverage.
- Key survey questions as provided:
  1. Country of origin
  2. Number of nights spent in South Sudan
  3. Number of persons travelling with you
  4. Where did you receive accommodation:
     - a) Hotel
     - b) Quest house
     - c) Others/ private rent
  5. How much did you spend in South Sudan including accommodation:
     - a) US$.....................
     - b) SSP.....................

*International Monetary Fund — content unit 1ssdea2020001*

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_Source: https://www.imf.org/-/media/files/publications/cr/2020/english/1ssdea2020001.pdf_