## IMF Staff Completes Mission to South Sudan for the Third Review of a Staff-Monitored Program with Board Involvement _IMF News, October 2, 2024_ ## Source details **Canonical URL:** [IMF Staff Completes Mission to South Sudan for the Third Review of a Staff-Monitored Program with Board Involvement](https://www.imf.org/en/news/articles/2024/10/01/pr-24354-south-sudan-imf-completes-mission-3rd-rev-program-with-board-involvement) ## Other formats - [Markdown version](/en/news/articles/2024/10/01/pr-24354-south-sudan-imf-completes-mission-3rd-rev-program-with-board-involvement/index.md) - [Structured JSON version](/en/news/articles/2024/10/01/pr-24354-south-sudan-imf-completes-mission-3rd-rev-program-with-board-involvement/index.json) - [Bundle manifest](/en/news/articles/2024/10/01/pr-24354-south-sudan-imf-completes-mission-3rd-rev-program-with-board-involvement/bundle-manifest.json) ## Bibliographic details - Published: October 2, 2024 --- ### Mission overview - 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. ### Macroeconomic impact and outlook - Major shocks: - The pipeline that carries about 70 percent of South Sudan’s oil exports has been inoperable since February 2024. - 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. - Disruptions to freight traffic in the Red Sea have increased insurance costs for oil cargoes supplied through South Sudan’s other pipeline. - Growth and outlook: - 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. - The slowdown is projected to continue during the fiscal year 2024/25 as the oil production shock persists. - Economic prospects are expected to improve in the medium term as the effects of the shocks recede. ### Fiscal performance and public finances - Oil and non-oil revenues: - Oil revenue collection was strong at end-December 2023 (16 percent of GDP) but pipeline damage constrained the full year outturn. - 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. - Budget execution and fiscal adjustments: - Budget execution in fiscal year 2023/24 proved challenging. - The pipeline damage resulted in further salary payment arrears and increased monetary financing during the first half of 2024 to cope with the shock. - Investment in oil-for-infrastructure continued, albeit at a slower pace to allow redirecting funds towards other urgent government priorities, including salary payments. - Information technology challenges have undermined timely and comprehensive fiscal reporting. - Budget plans: - The draft budget for the fiscal year 2024/25 was submitted to Parliament and tabled on September 25, 2024. - The draft budget includes provisions for the repayment of accumulated salary arrears. - Two months of salary were paid during July and August 2024. - Investment is planned to focus on building roads in support of the redistribution of agricultural products across the country. ### Monetary policy, exchange rate, and inflation - Exchange rate dynamics: - The parallel FX market premium remains large, despite a recent gradual depreciation of the official exchange rate. - The parallel market exchange rate depreciation was 222 percent during January−September 2024. - The parallel market premium has been on a declining trend since July. - Inflation and liquidity: - Inflation: 107.3 percent y/y at end-July 2024, mainly due to rapid reserve money growth and limited FX auctions. - Monetary policy has struggled to contain inflationary dynamics despite the usage of the term-deposit facility created in October 2022 to improve liquidity management. - Sporadic monetary financing to fund emergency needs contributed to reduced FX inflows and large depreciation in the parallel market. ### Policy and reform agenda discussed - Authorities’ objectives: - Recalibrate near-term macroeconomic policies to cope with the oil production shock through concomitant adjustments of fiscal, monetary, and exchange rate policies. - Maintain economic stability and debt sustainability through prudent macroeconomic policies. - Further improve governance and transparency via reforms. - Continue working with development partners to support the vulnerable population and reduce food insecurity given the humanitarian situation. - Program-related actions: - The mission discussed performance towards the PMB quantitative targets at end-June 2024 and progress in implementing the structural benchmarks. - Discussions to underpin the completion of the third review of the Staff-Monitored Program with Board Involvement will continue in the coming weeks. ### Stakeholder engagement and meetings - Government counterparts met: - Hon. Marial Dongrin Ater, Minister of Finance and Planning. - Hon. James Alic Garang, Governor of the Bank of South Sudan. - Mr. Africano Mande, Commissioner General of the South Sudan Revenue Authority. - Other government officials. - Other engagements: - Representatives of the diplomatic community and private sector. - Mission closing remark: - The mission thanked the authorities for their hospitality and for productive discussions. *IMF Staff Completes Mission to South Sudan for the Third Review of a Staff-Monitored Program with Board Involvement* --- ## References - [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) _Source: https://www.imf.org/en/news/articles/2024/10/01/pr-24354-south-sudan-imf-completes-mission-3rd-rev-program-with-board-involvement_