AfDB, South Sudan investment to focus on agriculture

The African Development Bank has recently signed protocols to disburse a $14 million grant to the Government of South Sudan, aimed at boosting the country's agricultural markets. The project will be implemented by the United Nations Food and Agriculture Organization (FAO) and targets approximately 20,000 farming families in three states: Central Equatoria, Eastern Equatoria, and Jubilee states. This initiative seeks to encourage internally displaced persons (IDPs) and former combatants to return to their home areas and commercialize their farming activities. By promoting commercial agriculture, the project aims to enhance food security in conflict-prone areas, stimulate local production and markets in rural villages and towns, and incentivize IDPs and refugees to return to their communities. The Minister of Finance of South Sudan, Atyan Dinn Atyan, expressed optimism about the project's potential to help the country diversify its economy and increase its exports. The grant, funded by the African Development Bank, will be overseen by the Government of South Sudan through its Ministry of Finance and Planning and the Ministry of Agriculture and Food Security. Despite South Sudan's high dependence on oil and significant imbalance in its balance of payment position, there is a push to promote commercial agriculture and reduce reliance on food imports. Economic Analyst, Akol Dok, highlighted the importance of economic diversification in light of the challenges faced by South Sudan's oil sector due to the COVID-19 pandemic. While the country aims to increase oil production and explore opportunities to refine crude oil for export, Dok emphasized the necessity of reinvesting in other industries such as agriculture, fisheries, and mining to foster economic growth. In addressing concerns about corruption and international assistance, Dok explained that the use of intermediary organizations, such as UN agencies and non-governmental organizations, to oversee funds reflects a cautious approach by donors in supporting the South Sudanese government directly. Following the establishment of a new transitional government, international partners are focusing on supporting vulnerable groups and ensuring transparent fund management through these intermediaries, given the country's historical challenges with corruption. Regarding the impact of COVID-19 on foreign workers in South Sudan, Dok acknowledged the challenges faced by companies with foreign staff during the pandemic. The restrictions and lockdown measures disrupted the movement of foreign workers, affecting various sectors including banking and oil. However, with the introduction of vaccines and improved COVID-19 response measures, there is optimism for a gradual recovery and alleviation of the economic strain induced by the pandemic. Looking ahead, South Sudan aims to harness its agricultural potential, reduce food imports, enhance local production, and create opportunities for IDPs and refugees through the agricultural market development project supported by the African Development Bank. By diversifying its economy and exploring avenues for export growth beyond oil, the country seeks to strengthen its resilience and pave the way for sustainable economic development in the region.