Saturday, July 13, 2024

AfDB grants South Sudan $8.6 million to boost non-oil revenue mobilisation

The African Development Fund, AfDB’s concessional window, will provide $6.62 million, while $1.98 million will come from the ADF’s Transition Support Facility.

• June 13, 2024
Akinwumi Adesina and Omar Bashir (Credit: AfDB)
Akinwumi Adesina and Omar Bashir (Credit: AfDB)

The Board of Directors of the African Development Bank Group has approved a grant funding of $8.6 million to South Sudan to advance the second phase of the Non-Oil Revenue Mobilization and Accountability Project (NORMA II).

The African Development Fund (ADF), the Bank Group’s concessional window, will provide $6.62 million, while $1.98 million will come from the ADF’s Transition Support Facility.

Themba Bhebhe, the Bank’s Country Manager for South Sudan, said NORMA II will enhance the capacity of South Sudan’s National Revenue Authority (SSRA) to boost non-oil revenue mobilization and accountability.

This phase complements the ongoing Bank-supported NORMA I project and the Institutional Support Project for Strengthening Economic Governance in South Sudan.

The two initiatives seek to address inefficiencies in broader public finance management, including budget framework, public sector spending efficiency, financial controls, reporting and accountability. Both projects are supported by ADF resources.

Key interventions of the NORMA II include developing the SSRA’s IT systems to improve revenue administration, tax collection, promoting tax compliance, and enhancing tax audits and investigations, among them studies of taxpayer perceptions.

The project also aims to expand the implementation of existing tax policies while exploring new areas to broaden the tax base, particularly value-added tax, hotel tax, and property tax. It will also consolidate training for project personnel from the first phase.

The project is expected to procure IT equipment for the tax authorities, whereas officials will receive technical assistance and on-the-job support from embedded advisors.

They will also benefit from capacity building at the local and regional levels. South Sudan’s National Revenue Authority and the Ministry of Finance and Planning will also receive technical assistance to improve their ability to mobilize non-oil revenue and acquire equipment for internal training.

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