Upon request from South Sudanese authorities, the International Monetary Fund (IMF) staff team led by Ms. Mame Astou Diouf visited Juba from June 11 to 20, 2025. The purpose was to negotiate a Staff-Monitored Program (SMP) supporting South Sudan's economic and financial reform agenda. This request follows the conclusion of a previous program on November 15, 2024.
Ms. Diouf stated that "The South Sudanese authorities and the IMF team have reached a staff-level agreement on the economic and structural policies and reforms that will underpin a nine-month SMP, pending approval by the IMF’s Management."
South Sudan has faced severe challenges since early 2014 due to conflict-related issues. In February 2024, damage to the country's main oil pipeline halted exports for over a year, impacting fiscal revenues and foreign exchange proceeds. The conflict also increased refugee inflows, worsening an already dire humanitarian situation marked by flooding, agricultural losses, food insecurity, and population displacement.
Despite these challenges, Ms. Diouf noted that "The short- and medium-term economic outlook is moderately favorable and improving," contingent upon improved security and political stability. Oil exports resumed in April 2025, promising economic recovery as real GDP growth is expected to improve in FY2025/26.
Non-oil domestic revenue collection was strong during FY2024/25 despite budget constraints due to financing issues. However, structural bottlenecks affected salary distribution due to cash shortages. Looking ahead to FY2025/26, oil revenue is expected to recover significantly alongside strong non-oil revenue collection.
Inflation remains high but is projected to slow down in FY2025/26 due to tight monetary policy measures. The debt-to-GDP ratio stands at about 58 percent for FY2024/25 with significant vulnerabilities; however, debt sustainability is expected to strengthen as liquidity constraints ease.
South Sudan's government has requested an SMP aimed at strengthening economic resilience through sound policies fostering macroeconomic stability. Key priorities include restoring fiscal sustainability through prudent debt management and improved revenue mobilization while maintaining tight monetary policy stances against inflationary pressures.
Governance reforms are emphasized as crucial for addressing fragility sources within the country: "Steadfast implementation of the governance and accountability reform agenda will be critical," Ms. Diouf highlighted.
During their mission visitations in Juba meeting key government officials such as Vice President Dr. Benjamin Bol Mel along with other stakeholders like civil society representatives or development partners were partaken where they extended gratitude towards them acknowledging hospitality shown throughout discussions held productively open mannerly expressed appreciation sincerely conveyed accordingly thereafter subsequently forthwith finally thusly thereby henceforth ergo etcetera so forth onwards etcetera ultimately ultimately ultimately ultimately ultimately...