Artifact Project : Financing for Development

1. Artifact Project:UsingOfficialDevelopment Assistances(ODA) tostrengthenNon.Oilrevenues
sector in South Sudan
,
Presentedby: Dominic K. Aurelio
Target audience:Policy Maker,GeneralPublic
1.0 Context | South Sudan:
The Republic of South Sudanbecame the world’s newest nation and Africa’s 55th countryon July9,
2011, following a peaceful secession from the Sudan through a referendum in January 2011. The
country’s growth domestic product (GDP) per capita in 2014 was $1,111. Outside the oil sector,
livelihoods are concentratedin low productive,unpaidagriculture and pastoralists work,accounting
foraround15% ofGDP.In fact,85%of the workingpopulation is engaged in non-wagework,chiefly
in agriculture (78%).[1]
On 15 December 2013, a violent conflict erupted plunging the country into a deep political, socio-
economic, and humanitarian crisis. Millions of dollars have been spent in addressing the urgent
humanitarian needs of IDPs and refugees whilst development works are put on hold awaiting for
PeaceAgreement to be implemented and the necessary institutional reformswithin the governance
systems.
2.0 Development Challenges (Problem Statement):
There is nodoubtthat,the youngnationhas been facingnumerous challenges–suchas dealingwith
the legacy of more than 50 years of conflict, continued instability, weak institutions, corruptions,
impunity and poor infrastructure. The situation has been exacerbated further by inadequate
competenthuman resourcestospearhead reforms tocatalyse economic development. South Sudan
is the most oil-dependent countryinthe world,with oil accountingforalmost the totality of exports,
andaround60%ofitsgrossdomestic product.WiththeconflictwhicheruptedinDecember 2013and
oil price falling from late 2014. (GDP).
3.0 Macroeconomic Assumptions: 2014-2034
International Monetary Funds(IMF) projectedin the next 10 years, annual average real GDP growth
is projectedto be about7 percent based on the expected recovery ofoil productionand non-oil real
GDP is assumed to grow at about 5 percent per year. Oil outputis projectedto increase gradually to
about 260 thousand barrels per day by 2017, but decline for 3-5 years after that as production rates
fall in aging oil fields. Itis also assumed that investment in enhancedoil recoveryandnew fields after
2020 pushes up production to nearly 400 thousand barrels per day by 2026.
Thereafter, oil outputis projected to fall to 140 thousandbarrels per day by 2034.Real non-oil GDP
growthisassumedtorecoverslowlyfromitscurrentlow baseandreachanaverage ofabout7percent
in the 2020s,primarily as a the result of increased activity in agriculture,other mining, and services.
Average inflation is projected at about 5 percent during the forecast period, and a gradual real
appreciation ofthe SouthSudanese poundis envisaged based on gradual productivityincreases and
a he expansion of the non-oil economy.[2]
Inclusion, I wish to recommend that, ODA allocations should be ejected to other non-oil revenues
sectors such as agriculture and infrastructure projects to stimulate broader economic growth.

2. [1] http://www.worldbank.org/en/country/southsudan/overview
[2] https://www.imf.org/external/pubs/ft/scr/2014/cr14345.pdf