Juba, South Sudan – The International Monetary Fund (IMF) is urging South Sudan to disclose details of its oil production agreements, a move the government resists, citing confidentiality clauses. Transparency in oil revenue management is seen as crucial to unlocking foreign aid and loans for the cash-strapped nation.
The IMF’s June 2024 report recommends reforms to bolster South Sudan’s credibility with donors. These include publishing oil production sharing agreements and regular reports on the oil sector.
Juba argues releasing the agreements would violate contracts with oil companies. However, the IMF maintains key details are already available in Ministry of Petroleum reports.
The IMF previously approved a nine-month monitoring program for South Sudan, with transparency being a key performance indicator. The program, designed to improve governance and economic stability, was extended twice due to unfulfilled reforms. South Sudan has requested a further extension to implement the remaining measures.
The IMF advises Juba to prioritize essential spending due to a decline in oil exports, which account for 90% of government revenue. This follows damage to the oil pipeline in February 2024. The decline has put pressure on foreign exchange reserves and import capacity.
