Public Management

South Sudan: IMF announces $174mln emergency aid to support post-Covid-19 recovery

South Sudan: IMF announces $174mln emergency aid to support post-Covid-19 recovery
Wednesday, 31 March 2021 18:32

South Sudan will benefit from an emergency aid of $174 million provided by the International Monetary Fund as part of the Rapid Credit Facility (RCF) signed with the country.

In a related statement, the Fund said the resources will be used to meet the country’s urgent balance of payment needs while allowing for a fiscal wiggle room. This should, according to IMF, help sustain spending aimed at reducing poverty and promoting growth.

The announcement comes at a time when the South Sudanese economy, which has been struggling for many years, has recently been affected by both the decline in oil prices and the covid-19 pandemic. Despite the reforms announced by the government, the economy has been underperforming, and for the FY2020-21, the IMF expects a 4.2% contraction in GDP.

“The economic downturn widened the fiscal and the balance of payments deficits, opening large financing gaps in the absence of concessional financing. In the past, the monetization of the fiscal deficit resulted in high inflation and significant exchange rate depreciation,” IMF said.

“The IMF’s emergency financing under the Rapid Credit facility would help meet priority spending needs, catalyze donor support, and foster critical economic reforms envisaged under the Staff-Monitored Program. Prudent fiscal and monetary policies are necessary to promote macroeconomic stability,” commented Mitsuhiro Furusawa (pictured), IMF Deputy MD.

Despite this somehow sad picture, “a modest economic recovery is projected in FY21/22 on the heels of oil price recovery.”

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Seven UEMOA countries (excluding Benin) plan to raise $4.44 billion (CFA2,510.85 billion) from the regional debt market in Q4 2025. Côte...
FinDev Canada loans $100M to AFC for sustainable infrastructure Funds target clean energy, low-emission transport in sub-Saharan Africa Deal...
(PRESIDENCE DE GUINEE)- The Republic of Guinea has completed a major rebasing exercise of its Gross Domestic Product (GDP), conducted by the National...
Moniepoint completes $200 million Series C round after securing $90 million more Funding led by DPI’s African Development Partners III...

Most Read
01

BYD to install 200-300 EV chargers in South Africa by 2026 Fast-charging stations powered by grid...

China's BYD Plans 300-Station EV Charging Network for South Africa
02

Drones to aid soil health, pest control, and input efficiency High costs, skills gap challenge ac...

Kenya Plans National Drone Rollout to Modernize Farming
03

• The five-year plan allocates 388 billion pulas to boost growth and jobs.• Focus areas include tran...

Botswana unveils $27bn plan to accelerate economic diversification
04

• The Bank urges Nigeria to raise excise taxes on alcohol, tobacco, and sugary drinks.• Current rate...

World Bank backs higher public health taxes in Nigeria
05

TotalEnergies, Perenco, and Assala Energy account for over 80% of Gabon’s oil production, estimate...

Gabon Seeks Foreign Partners to Revive Declining Oil Sector
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.