South Sudan’s spending to almost double in 2024/25, finance minister says

NAIROBI, Sept 25 (Reuters) – South Sudan’s government spending will almost double to 4.17 trillion pounds (about $1.4 billion) in the 2024/25 (July-June) fiscal year from 2.1 trillion pounds in the previous year, its finance minister said on Wednesday.

South Sudan’s economy is still reeling from the effects of the 2013-2018 civil war and relies heavily on crude oil sales for its revenues.

Finance Minister Marial Dongrin Ater, presenting a draft budget to parliament, said the 2024/25 spending will be funded by raising 1.138 trillion pounds from oil revenues while non-oil revenue is projected to be 1.119 trillion pounds.

The rest of the budget will come from external grants and borrowing, he said.

Ater said in the 2023/24 fiscal year, the economy had contracted 5%, due to disruptions to oil production and exports and the impact of flooding in parts of the country. He did not give a forecast for 2024/25.

While spending is to increase in local currency terms, the South Sudanese pound has lost 65% of its value versus the U.S. dollar since January, according to official central bank rates.

The main pipeline carrying oil from South Sudan through neighbouring Sudan for export began suffering stoppages in February due to problems caused by the war between Sudan’s army and the paramilitary Rapid Support Forces (RSF).

Last week,

South Sudan said there had been progress towards restarting the pumping of crude oil through a pipeline running through Sudan for export.

Earlier this month, South Sudan said it had postponed a national election until December 2026. (Writing by George Obulutsa Editing by Ros Russell)

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