Sub-Saharan Africa

South Sudan Calls for Bigger Private Sector Role

South Sudan’s Vice President has called for a strong private sector to create jobs and boost growth in Africa’s newest country, where IFC and the World Bank are gaining traction with efforts to improve the business climate, encourage investments, and structure private-public partnerships.
 

Speaking at a public-private partnership conference in Juba co-hosted by IFC, South Sudan’s Vice President, Dr. Riak Machar, said, “We have to open opportunities for our people to go into business, otherwise we will not progress. It is unsustainable for the government to remain the main employer in the country, so the private sector must start to create jobs.”

To that end, IFC and the World Bank are implementing a wide range of advisory services to build the country’s budding private sector from the ground up. New laws and a business registry are making it easier for start-up entrepreneurs, while property rights have been strengthened.

The PPP conference, attended by senior government officials, multilateral finance institutions, and local and international private sector firms, aimed to kick-start investment in the country’s infrastructure, which was devastated by decades of civil war.

Advisors from several IFC and World Bank programs contributed to the workshop, including, the Health in Africa program, Sustainable Business Advisory and the Conflict-Affected States program. They shared case studies from PPP projects across Africa, and outlined the principles for structuring such projects in the health, power, and water sectors.

World Bank studies estimate that for African countries to meet their infrastructure needs, an annual investment of $93 billion must be made. Of the required investment, only $45 billion is being spent every year.

As Africa’s youngest nation, which gained its independence in July 2011, South Sudan’s needs are plentiful. Locked in stalemate with the Sudanese government, South Sudan has suspended oil production and export. This leaves fewer financing options for essential infrastructure, including a tarmac, power plants, and water facilities. PPPs offer a potential solution.

Honorable Michael Milly Hussien, South Sudan’s Minister of Health, underscored the relevance of the workshop at a time when the country’s health system is struggling to cope. “The PPP model could increase accessibility of health facilities and equip them with reliable and sustainable services.”

“South Sudan’s economy, while ripe with challenges, offers exciting prospects to investors and entrepreneurs who want to shape a new country,” said Jean Philippe Prosper, IFC Director for East and Southern Africa. “To date, over 10,000 businesses have been registered, and at least seven commercial banks have been established that serve more than 10,000 families.”

The workshop was jointly organized and funded by IFC’s Public Private Partnership and Investment Climate divisions.

For more information, contact:
Neha Sud
Communications Officer
Nairobi, Kenya

E-mail: nsud@ifc.org

Jason Hopps
Communications Officer
Johannesburg, South Africa
Phone: +27 11 731 3120
E-mail: jhopps@ifc.org