{
  "title": "IMF Staff Completes Mission to South Sudan for the Third Review of a Staff-Monitored Program with Board Involvement",
  "publication": "IMF News, October 2, 2024",
  "sourceUrl": "https://www.imf.org/en/news/articles/2024/10/01/pr-24354-south-sudan-imf-completes-mission-3rd-rev-program-with-board-involvement",
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  "summary": "An International Monetary Fund (IMF) staff team, led by Ms. Mame Astou Diouf, Mission chief for South Sudan, visited Juba from September 25−October 2, 2024.",
  "publishDate": "2024-10-02",
  "sections": [
    {
      "heading": "Mission overview",
      "content": "- Mission dates: September 25−October 2, 2024.\n- Mission chief: Ms. Mame Astou Diouf.\n- Press Release No.: 24/354.\n- Purpose: Discussions with South Sudanese authorities on the third review under the Staff-Monitored Program with Board Involvement (PMB), approved on February 17, 2023 and accompanied by a disbursement through the Food Shock Window approved on March 1, 2023.\n- Note: End-of-Mission press releases convey preliminary findings after a visit. The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion."
    },
    {
      "heading": "Macroeconomic impact and outlook",
      "content": "- Major shocks:\n  - The pipeline that carries about 70 percent of South Sudan’s oil exports has been inoperable since February 2024.\n  - Spillovers from the war in neighboring Sudan and recurrent flooding have deteriorated economic and social outcomes and led to a large influx of refugees to South Sudan.\n  - Disruptions to freight traffic in the Red Sea have increased insurance costs for oil cargoes supplied through South Sudan’s other pipeline.\n- Growth and outlook:\n  - South Sudan is estimated to have experienced an economic slowdown during the fiscal year 2023/24 (July 2023−June 2024), with a real GDP growth close to -6 percent, driven by the oil exports drop during the first half of 2024.\n  - The slowdown is projected to continue during the fiscal year 2024/25 as the oil production shock persists.\n  - Economic prospects are expected to improve in the medium term as the effects of the shocks recede."
    },
    {
      "heading": "Fiscal performance and public finances",
      "content": "- Oil and non-oil revenues:\n  - Oil revenue collection was strong at end-December 2023 (16 percent of GDP) but pipeline damage constrained the full year outturn.\n  - Non-oil revenue increased due to revenue administration measures and an increase in the exchange rate used for customs valuation, partially compensating for the drop in oil revenue.\n- Budget execution and fiscal adjustments:\n  - Budget execution in fiscal year 2023/24 proved challenging.\n  - The pipeline damage resulted in further salary payment arrears and increased monetary financing during the first half of 2024 to cope with the shock.\n  - Investment in oil-for-infrastructure continued, albeit at a slower pace to allow redirecting funds towards other urgent government priorities, including salary payments.\n  - Information technology challenges have undermined timely and comprehensive fiscal reporting.\n- Budget plans:\n  - The draft budget for the fiscal year 2024/25 was submitted to Parliament and tabled on September 25, 2024.\n  - The draft budget includes provisions for the repayment of accumulated salary arrears.\n  - Two months of salary were paid during July and August 2024.\n  - Investment is planned to focus on building roads in support of the redistribution of agricultural products across the country."
    },
    {
      "heading": "Monetary policy, exchange rate, and inflation",
      "content": "- Exchange rate dynamics:\n  - The parallel FX market premium remains large, despite a recent gradual depreciation of the official exchange rate.\n  - The parallel market exchange rate depreciation was 222 percent during January−September 2024.\n  - The parallel market premium has been on a declining trend since July.\n- Inflation and liquidity:\n  - Inflation: 107.3 percent y/y at end-July 2024, mainly due to rapid reserve money growth and limited FX auctions.\n  - Monetary policy has struggled to contain inflationary dynamics despite the usage of the term-deposit facility created in October 2022 to improve liquidity management.\n  - Sporadic monetary financing to fund emergency needs contributed to reduced FX inflows and large depreciation in the parallel market."
    },
    {
      "heading": "Policy and reform agenda discussed",
      "content": "- Authorities’ objectives:\n  - Recalibrate near-term macroeconomic policies to cope with the oil production shock through concomitant adjustments of fiscal, monetary, and exchange rate policies.\n  - Maintain economic stability and debt sustainability through prudent macroeconomic policies.\n  - Further improve governance and transparency via reforms.\n  - Continue working with development partners to support the vulnerable population and reduce food insecurity given the humanitarian situation.\n- Program-related actions:\n  - The mission discussed performance towards the PMB quantitative targets at end-June 2024 and progress in implementing the structural benchmarks.\n  - Discussions to underpin the completion of the third review of the Staff-Monitored Program with Board Involvement will continue in the coming weeks."
    },
    {
      "heading": "Stakeholder engagement and meetings",
      "content": "- Government counterparts met:\n  - Hon. Marial Dongrin Ater, Minister of Finance and Planning.\n  - Hon. James Alic Garang, Governor of the Bank of South Sudan.\n  - Mr. Africano Mande, Commissioner General of the South Sudan Revenue Authority.\n  - Other government officials.\n- Other engagements:\n  - Representatives of the diplomatic community and private sector.\n- Mission closing remark:\n  - The mission thanked the authorities for their hospitality and for productive discussions.\n\nIMF Staff Completes Mission to South Sudan for the Third Review of a Staff-Monitored Program with Board Involvement\n\n---\n\n\n References\n\n- Republic of South Sudan and the IMF\n- Press Releases\n- PRESS CENTER\n- PR 23/55\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2024/10/01/pr-24354-south-sudan-imf-completes-mission-3rd-rev-program-with-board-involvement"
    }
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    "Published: October 2, 2024",
    "Mission dates: September 25−October 2, 2024.",
    "Mission chief: Ms. Mame Astou Diouf.",
    "Press Release No.: 24/354.",
    "Purpose: Discussions with South Sudanese authorities on the third review under the Staff-Monitored Program with Board Involvement (PMB), approved on February 17, 2023 and accompanied by a disbursement through the Food Shock Window approved on March 1, 2023.",
    "Note: End-of-Mission press releases convey preliminary findings after a visit. The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.",
    "Major shocks:",
    "Growth and outlook:",
    "Oil and non-oil revenues:",
    "Budget execution and fiscal adjustments:",
    "Budget plans:",
    "Exchange rate dynamics:",
    "Inflation and liquidity:",
    "Authorities’ objectives:",
    "Program-related actions:",
    "Government counterparts met:",
    "Other engagements:",
    "Mission closing remark:",
    "[Republic of South Sudan and the IMF](http://www.imf.org/external/country/SSD/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[PR 23/55](https://www.imf.org/en/News/Articles/2023/03/02/pr2355-imf-executive-board-approves-us1148-million-in-emergency-financing-support-to-south-sudan)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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