[OPINION] – Blueprint to Rescue South Sudan’s Public Finances

(JUBA) – South Sudan’s banking system, taxation regime and revenue collection continue to suffer from weak institutional links to the Central Bank, fragmented taxation, corruption, border leakages and constant reshuffles. Below is a practical blueprint for action.

What the data shows
Foreign exchange and inflation shocks have repeatedly eroded purchasing power. After unifying exchange rates in 2021, the South Sudanese Pound (SSP) still suffered sharp depreciation in 2024, with very high inflation projected for 2025. Governance risk remains extreme. South Sudan ranked the lowest globally on the 2024 Corruption Perceptions Index, a record that directly undermines tax, customs and banking reforms.

The Financial Act 2024/25 revised Business Profit Tax, Withholding Tax, excise and customs. Implementation must be consistent across domestic and border points. Payments modernisation has created an opportunity. The Central Bank now recognises mobile money as a legal form of payment. If linked to the revenue system, this could formalise trade, retail and tax compliance.

A phased strategy for reform (18–36 months)

First 100 days: Stabilisation

• Establish a unified Treasury, Central Bank and Revenue loop.

• Mandate a Treasury Single Account (TSA) at the Bank of South Sudan (BoSS) for all revenues, sweeping accounts daily and closing off-budget accounts.

• Implement a minimum viable tax pipeline by applying the Financial Act 2024/25 rates in a single rulebook, mirrored in customs and domestic tax systems. Publish a one-page taxpayer guide.

• Launch a Joint Leakages Taskforce involving the Ministry of Finance and Planning (MoFP), South Sudan Revenue Authority (SSRA), Customs, BoSS and Interior to track weekly dashboards of revenue performance.

• Digitise payments, with mobile money and bank POS as official payment channels, instantly settling to the TSA. Require large importers to pay duties and VAT electronically, while phasing in SMEs.

• Maintain discipline in FX and cash management by avoiding monetary financing, publishing weekly FX auctions and reference rates.

• Introduce quick transparency releases by publishing monthly oil and non-oil revenues, cash releases to ministries and audited statements from BoSS.

Months 4–12: Consolidation

• Modernise customs at Nimule and other key borders with full digitalisation of declarations, harmonisation of HS codes, and e-payment before release.

• Adopt risk-based inspections and bonded warehouses to reduce congestion and corruption.

• Roll out e-TIN clean-up, mandate e-invoicing for large taxpayers, and expand Business Profit Tax advances on imports.

• Support SMEs by promoting zero-cost mobile money acceptance and linking e-receipts to tax accounts. Expand agent banking in counties.

• Launch e-procurement for the top 20 spending entities and publish winning bids and unit prices.

• Strengthen BoSS banking oversight, introduce secured transactions and collateral registries to unlock SME credit, and create a credit information bureau.

Year 2–3: Growth and markets

• Focus on five value chains including sorghum, groundnuts, livestock, construction inputs and consumer goods. Reduce import barriers, pilot warehouse receipts and offer VAT refunds for exporters.

• Simplify company registration, guarantee investment stability clauses only through Parliament, and publish a registry of all tax exemptions.

• Promote diaspora and FDI channels with FX retention accounts, diaspora investment notes via banks and mobile wallets, and quarterly investor briefs on FX, inflation and projects.

• Establish public dashboards on revenues, debt, FX auctions and inflation, supported by an independent Fiscal and Monetary Council.

Institutional roles

• BoSS: policy rates, FX auctions, settlement of government receipts and payments, and oversight of banks and mobile money operators.

• MoFP: budget, TSA control, arrears and debt management, and issuing the single tax rulebook.

• SSRA: managing taxes and customs, integrated with e-payments, compliance enforcement and monthly performance reports.

Anti-corruption guardrails
All revenues, procurement awards and audits must be published. High-risk customs and tax posts should rotate every six months, with asset declarations required. Exemptions must be centralised in a single registry signed only by the MoFP. Donor budget support should be tied to verifiable TSA receipts and published reports.

Key performance indicators

• Increase non-oil revenue share of GDP.

• Reduce customs clearance time.

• Achieve more than 70 per cent of public receipts through e-payments by the end of Year 2.

• Keep variance between cash releases and plans below 10 per cent.

• Reduce arrears and inflation compared with IMF projections.

• Increase SME credit and expand mobile money merchant adoption.

Clarification on office holders
Athian Diing Athian was appointed Minister of Finance and Planning on 16 September 2020. However, since late 2024, the position has been held by Dr Marial Dongrin Ater, as referenced by the IMF in 2024 and 2025. At the Bank of South Sudan, President Kiir dismissed James Alic Garang in December 2024, reinstating Johnny Ohisa Damian as Governor. Policy continuity at BoSS therefore remains a concern, requiring regular publication of monetary operations calendars and audits regardless of leadership changes.

Author: Malek Deng Arop is a South Sudanese policy commentator.