South Sudan

The Republic of South Sudan became the world’s youngest nation and Africa’s 54th country on July 9, 2011. Since then, the country has faced significant challenges, including outbreaks of civil war (2013, 2016), subnational violence, and political contestation. These factors, along with weak management of public resources, have hindered development and intensified humanitarian needs.

The Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan (R-ARCSS), signed in September 2018 and the formation of a Transitional Government of National Unity in February 2020 have contributed to relative stability. The transitional period was extended to February 2027, providing additional time for the government to implement provisions in the R-ARCSS and prepare the country for elections.

At the same time, progress under the agreement has been uneven. The peace process continues to face challenges, including the unification of armed forces, the drafting of a permanent constitution, and recent political developments that have affected the pace of implementation and contributed to uncertainty around the transition process.

South Sudan continues to face severe humanitarian emergencies driven by climate shocks, relentless violence, disease outbreaks and a struggling economy. These intersecting crises have systematically eroded community resilience, shattered essential services, and displaced millions of people.

In 2026, more than 10 million people, two-thirds of the population, are projected to require some form of humanitarian assistance. The humanitarian situation is characterized by acute food insecurity, widespread displacement, fragile health and education systems, and severe protection risks, particularly for women, children, people with disabilities and other vulnerable groups. The conflict in Sudan, now entering its third year, continues to place immense pressure on South Sudan’s humanitarian and socio-economic systems.

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Macroeconomic performance in FY25 was mixed, with the economy contracting due to a sharp drop in oil production following the DAR pipeline shutdown. Production has since recovered, rising to 157,000 barrels per day in early FY26, supported by a security agreement to protect Sudan’s export infrastructure. The fiscal deficit widened to 6.7% of GDP in FY25, driven primarily by increased spending from the Ministry of Presidential Affairs. The resulting cash crunch left civil servants with salary arrears of 8 to 13 months by January 2026. Significant off-budget spending masks a much larger headline fiscal deficit than reported. These off-budget expenditures financed by banks, including the central bank, contributed to price pressures.

Annual average inflation, proxied by food inflation, reached 234% in FY25. The official exchange rate depreciated by 198%, while the parallel rate fell by 224%, with an average market premium of 41%. Reduced aid and wage arrears deepened poverty, with extreme poverty rising from 84% in 2024 to 87% in 2025.

The outlook is constrained by political and economic instability. GDP growth is expected to recover in FY26 if oil production remains steady, but sustaining growth requires attracting investment, particularly FDI. Clearing salary arrears will widen the fiscal deficit in the near term, though consolidation is projected by FY28. Inflation is expected to ease from a high base, but Middle East conflict may raise import prices and worsen food security.

Risks include intensified domestic conflict, frequent rotation of senior officials, and accumulating salary arrears weakening bureaucracy. Disruptions to key trade routes could affect oil revenues, while climate shocks threaten agriculture and food security. These risks underscore the urgency of advancing governance and structural reforms to underpin sustained development.

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The World Bank Group (WBG) has been actively engaged in South Sudan since 2005. As of March 2026, the WBG portfolio stands at $1.18 billion, encompassing eleven national and two regional operations.  These projects span a wide range of sectors, including governance, education, health, social protection, financial sector, agriculture, women’s empowerment, energy, water, digital development, livestock and community resilience. The Bank’s efforts are centered on strengthening institutions, improving livelihoods, and enhancing service delivery. Key priorities include supporting economic recovery and poverty reduction, fostering community resilience, and advancing public sector reforms.

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During South Sudan’s extended transitional period, the World Bank Group’s program continues to focus on three areas: (a) laying the groundwork for institution building, (b) continuing support for basic public service delivery, and (c) promoting resilience and livelihood opportunities with social inclusion, especially for youth and women, as a cross-cutting principle.

Key targeted outcomes from this approach include building state effectiveness to deliver for the South Sudanese people and enabling the creation of more and better jobs and livelihoods. The World Bank also maintains strong partnerships and collaborates regularly with development and humanitarian partners, the private sector, UN agencies, non-governmental organizations (NGOs), and civil society organizations (CSOs) in South Sudan.

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Resilient Agricultural & Livelihood Projectstrengthened food security for 244,974 smallholder households through access to productive assets, improved seeds, and agricultural services. The project vaccinated 1.4 million livestock, treated 343,810 animals, and strengthened 881 farmer groups, supporting more resilient and diversified livelihoods.

Health Sector Transformation Projectenabled 2,174,747 people to access essential health and nutrition services, 1,179,033 children (under age one) immunized with 3rd dose of Pentavalent vaccine (639,724) and first dose of measles (539,309), and 4,889,858 treated with first line antimalarial drugs. The Boma Health Initiative achieved full coverage in refugee settings and 65% coverage in host communities.

Public Financial Management & Institutional Strengthening Project supported key PFM reforms and strengthened budget/procurement oversight. System and accountability gains include piloting IFMIS in 11 ministries, biometric registration of 3,098 staff to improve payroll integrity, and capacity building for 1,100 civil servants.

Building Institutional Foundations for an Effective Public Service Project supported civil service reform, including adoption of a Civil Service Management Transformation Strategy and validation of updated HR policies, establishing governance structures and capacity-building for ministries.

Women’s Social & Economic Empowerment Project strengthened women’s livelihood and girls’ access to services, enrolling 20,639. The project supported 1,211 women-owned businesses with technical assistance, 153 expansion grants, and operationalized the National GBV helpline.

Productive Safety Net for Socioeconomic Opportunities Project delivered income support to 156,142 households, 78% women-headed, while strengthening national safety net systems. The project generated jobs for 1,266 through 24.4 million workdays and durable community assets, and disbursed cash assistance to 92,495 households.

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