South Sudan launches $5m public finance reform project

South Sudan on Thursday launched a $5 million public finance reform project in partnership with the United Nations Development Programme (UNDP), aiming to strengthen financial controls, improve accountability, and boost service delivery.

The five-year program, signed in Juba, represents a shift toward government-led financing of reforms previously supported largely by international donors.

UNDP Resident Representative Mohamad Abchir called the agreement a turning point for the country’s reform agenda. “This is a milestone. It’s really a historical moment for South Sudan,” he said, adding that the initiative signals the government’s commitment to improving public financial management.

Under the agreement, the Ministry of Finance and Planning will co-finance and implement the project alongside UNDP. South Sudanese professionals embedded in government institutions will carry out the technical work.

Officials said the program aims to address longstanding weaknesses in budgeting, payroll management, and procurement systems, which are vulnerable to inefficiency and misuse of public funds.

The project builds on earlier reforms launched in 2020 with support from Norway, whose funding is set to end in June.

 Benjamin Ayali Koyongwa, undersecretary at the Ministry of Planning, said the government decided to step in to sustain the reforms.

“The question was what next after the end of the funding,” he said. “It is important now that the government steps in to cover the rest.”

Ayali said the government plans to contribute about $1 million annually, partly funded through savings from payroll reforms, including a biometric headcount to eliminate “ghost workers.”

“We don’t know how many people we are paying,” he said, noting that cleaning up the payroll could free up resources for salaries and public services.

The reform program includes capacity building for senior officials, institutional strengthening, and the expansion of financial management systems across ministries, departments, and agencies. Authorities also plan to extend reforms to state and local levels, where a large share of public spending occurs.

Officials said the project will be overseen by a steering committee and audited by the national Auditor General to ensure transparency and prevent misuse of funds.

Ayali said the initiative is central to improving service delivery in a country where many citizens have limited access to basic services.

“It is only through public finance management reform that we can have sufficient resources to deliver services to our people,” he said.

South Sudan, heavily reliant on oil revenues and long affected by weak institutions, has struggled with financial management challenges since gaining independence in 2011. Officials expressed hope that the government’s funding decision will encourage further support from development partners and build confidence in the country’s financial systems.

“Reform is not an event, it is a process. This is just the beginning,” Ayali said.