REGIONAL DEVELOPMENT FINANCE INSTITUTIONS (TDB-PTA & ATI) - COUNTRY MEMBERSHIP PROGRAMME


Overview

  • Reference: P-SS-HZ0-001
  • Approval date: 12/04/2017
  • Start date: 12/04/2018
  • Appraisal Date: 30/11/2016
  • Status: ApprovedAPVD
  • Implementing Agency: MINISTRY OF FINANCE AND ECONOMIC PLANNING
  • Location: South Sudan

Rationale

The rationale for the project is based on the recognition that South Sudan lacks the necessary capacity and financial resources to effectively navigate the myriad of issues impacting on the successful implementation of trade finance and investment risks underwriting. Furthermore, South Sudan has been starved of fresh capital to fully exploit the vast investment and trade potential that the country has due to economic sanctions; huge debt overhang and accumulation of arrears. In this regard, the country is requesting support to complement own resources to pay for its membership contribution to the ATI in order for the local economy to benefit from the services of ATI. Furthermore, multilateral institutions like the ATI have the depth and experience to cover political risks. South Sudan's ascension to ATI membership will inevitably be a strong confidence and credibility building measure that sends the right signal to prospective investors that South Sudan is ready for business.


Benefits

The main objective of the proposed intervention is to assist South Sudan with the required resources for its membership subscription to regional financial institutions, namely PTA Bank and ATI. The government of South Sudan has prioritized becoming a member of the PTA Bank and ATI during the course of 2017. Joining ATI would promote private sector led development as this will allow greater underwritten insurance cover for the country's private sector. ATI would bring to South Sudan increased capacity of insurance particularly of political risks; broader financial services and facilitate inflows of FDI which has been undermined by negative perceptions of risks, mostly driven by political considerations. Furthermore, this programme would complement the Bank's ongoing support on mobilizing FDI for rehabilitation of basic infrastructure, importation of fuel; as well as the various initiatives targeted at addressing the liquidity crisis adversely affecting the economy


Key contacts

NEKATI Bleming - PIFD


Costs

Finance source Amount
ADFUAC 13,380,000
TotalUAC 13,380,000