JUBA, 31 October 2019 – South Sudan is laying the groundwork to rebuild its economy. Under the 2018 peace deal, a transitional government is set to be formed in November 2019. The African Trade Insurance Agency (ATI) will play an important role in supporting the government’s efforts to attract more investments and to diversify its economy.
In 2017, South Sudan joined ATI, a multilateral provider of investment and trade credit insurance. ATI’s products support economic transformation in Africa, supporting inward investment and outward trade flows on the continent.
At the invitation of the Minister of Finance, ATI is hosting a series of events in Juba this week to draw attention to its risk mitigation products that target the local and international private sector including financiers and suppliers of goods and services.
ATI can insure both sovereign and private sector risks. The presence of ATI will stimulate less emphasized sectors such as agriculture, manufacturing and services in order diversify the economy and to provide more stable and sustainable growth.
ATI’s regional partners, the African Export-Import Bank (Afreximbank) and the Trade and Development Bank (TDB), will also take part in the workshop to inform the public and private sectors about their financing products.
South Sudan’s economy has vast potential. The IMF is forecasting 9% growth in 2019 and a projection of 5% growth in 2020. The country has a predominately oil-based economy, which accounts for about 70% of its GDP. South Sudan is expected to produce 195,000 barrels per day (BPD) by the end of the year. In addition, recent oil discovery in the Northern Upper Nile state is seen as the tip of the iceberg, with 70% of the country unexplored and with proven oil reserves of 3.5 billion barrels, there is tremendous room for growth. Economic diversification will be important for this young country, and ATI has a track record of supporting such diversification.
QUOTE from John Lentaigne, Ag CEO, African Trade Insurance Agency…
“As an African institution, ATI has a strategic focus to de-risk member countries in order to attract investments and promote growth. With a firm commitment to peace and stability, South Sudan can begin to achieve its full potential – and ATI plans to continue to walk this developmental journey with them as we’ve done with so many other countries in Africa.”
QUOTE from Hon. Salvatore Garang Mabiordot, Minister of Finance and Economic Planning, South Sudan…
“The Ministry of Finance and Planning is committed to implement financial reforms and use the South Sudan National Strategy as a tool to attract foreign direct investment, to stabilise economic growth, and we will continue to provide investment guarantees and insurance in partnership with ATI.”
QUOTE from Kudakwashe Matereke, Regional Chief Operating Officer- East Africa, Afreximbank…
“As the leading provider of trade finance products in Africa, Afreximbank has worked with the Government of South Sudan and the country’s private sector to provide financing solutions to meet their financing requirements. The country is now implementing a process of economic recovery aimed at getting its people to engage in productive activities, including agriculture and industry, and investments in infrastructure. Afreximbank is ready to work with its partners to provide financing solutions to assist the government to realise its objectives.”
QUOTE from Admassu Tadesse, President & CEO, Trade and Development Bank…
“For 35 years, TDB has been playing an instrumental and growing role in co-financing trade and socio-economic development in Eastern and Southern Africa. We look forward to providing trade finance and other development financing services to South Sudan, one of our newly joined member states.”