World Bank, South Sudan unveil economic and climate reports

The World Bank Group and the Government of South Sudan have launched two key reports, the Public Finance Review (PFR) and the Country Climate and Development Report (CCDR) to guide the country through economic, humanitarian, and climate challenges.

The PFR highlights how the country’s heavy reliance on oil, which accounts for 60 percent of GDP and nearly all exports, has made public spending volatile and politically driven rather than focused on long-term development.

Non-oil revenues remain minimal, at less than 4 percent of GDP, leaving the government dependent on external aid.

The report stresses that stabilizing the economy will require reforms such as improving domestic revenue collection, targeting public spending more effectively, and enhancing transparency and accountability, alongside broader governance improvements to build institutional trust and attract investment.

Complementing this, the CCDR warns that South Sudan is one of the fastest-warming countries in the world, with 80 percent of its population relying on climate-sensitive livelihoods.

Since 2019, flooding has displaced more people than conflict, exacerbating food insecurity, disrupting agriculture, and increasing health risks.

The report identifies key priorities for building resilience, including sustainable food systems, climate-resilient rural livelihoods, better management of natural resources, and expanded energy access.

Charles Undeland, World Bank Group Country Manager for South Sudan, stressed the need for transparency and fiscal discipline.

“One needs to have visibility on what is earned, borrowed, and spent across oil revenue flows. All these things are important for all the stakeholders committed to the development of South Sudan,” Undeland said during the launch on Thursday in Juba.

Undeland also warned of escalating climate risks, noting that annual floods have increased since 2019 and could become the “new normal” within two decades.

He stressed that delays in investing in resilience would put the livelihoods of millions of South Sudanese at greater risk.

Yien Gach, Deputy Minister of Finance and Planning, highlighted the fragility of South Sudan’s fiscal situation.

“With limited fiscal space, the government finds it increasingly challenging to respond adequately. This report is key to the action we must undertake to address our situation,” Gach stated.