World Bank Provides $34 million to Support Public Financial Management Reforms in South Sudan

JUBA —The World Bank approved $34 million in International Development Association (IDA)* grant financing to support a new five-year Public Financial Management (PFM) and Institutional Strengthening Project (PFMISP) in South Sudan. The project aims to advance public financial management reforms, strengthen key oversight institutions, and improve budget transparency and PFM outcomes in the country.

The project specifically aims to improve the preparation of the national budget and associated implementation processes. Additionally, the project will support the implementation of key PFM and governance reforms — as outlined in Chapter IV of the 2018 Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan (R-ARCSS) and its commitments under the International Monitoring Fund’s Staff Monitored Program (SMP).

“This project is consistent with the World Bank Group’s (WBG) Country Engagement Note for South Sudan covering 2021-2023 which emphasizes the importance of building the country’s institutional capacity at both the national and local levels, fostering greater accountability and transparency in government institutions, and strengthening citizens’ confidence in the ability of the government to deliver essential services,” said Firas Raad, World Bank Country Manager for South Sudan.

This is the first World Bank-financed project since 2018 that will be fully implemented through government systems under the leadership of the Ministry of Finance and Planning. The project is designed to strengthen capacity in central and state-level PFM agencies and consists of four components: strengthening budget preparation processes; strengthening the transparency and predictability of budget implementation and procurement for priority spending areas; supporting institutions, capacity development and facilitating PFM reform; and improving project management and learning.

“Alongside foundational activities to help rebuild the country’s PFM, procurement, transparency and accountability systems, this project will help strengthen service delivery systems in key sectors. It will also enhance the capacity of civil servants working in PFM and procurement, and will reinforce channels of communication between the government and its citizens,” said Nicola Smithers, World Bank Practice Manager for Governance in Eastern Africa.

South Sudan’s national and state governments will benefit from improvements in budget management across the country. The project complements existing and upcoming World Bank operations, and aspires to contribute to the ongoing transition to government-led implementation of World Bank financed projects.

“We are working with our partners including the World Bank on the PFM reform agenda to improve our processes for budget preparation and budget implementation. We also seek to improve our cash management processes, procurement system, and audit procedures. Implementing these policies will help us to improve the efficiency of public spending, to enhance fiscal accountability, and to strengthen the channels of communication between the government and citizens – thus implementing some of the critical PFM reforms that are essential to reviving our economy and consolidating our internal peace process,” said Agak Achuil Lual, Minister of Finance and Planning for the Republic of South Sudan.

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 74 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has provided $458 billion to 114 countries. Annual commitments have averaged about $29 billion over the last three years (FY19-FY21), with about 70 percent going to Africa. Learn more online: IDA.worldbank.org. #IDAworks