AfDB Grants $8.6 Million for Non-Oil Revenue Mobilization in South Sudan

The NORMA II project is expected to contribute significantly to South Sudan's efforts in diversifying its revenue sources away from oil dependence.

The Board of Directors of the African Development Bank Group has approved a grant funding of $8.6 million to South Sudan to support the second phase of the Non-Oil Revenue Mobilization and Accountability Project (NORMA II). This initiative aims to enhance the country's capacity to mobilize non-oil revenues and improve accountability within the National Revenue Authority (SSRA). 

Source of Funding:

African Development Fund (ADF): $6.62 million

ADF’s Transition Support Facility: $1.98 million

Objectives and Scope of NORMA II

NORMA II builds upon the achievements of NORMA I and the Institutional Support Project for Strengthening Economic Governance in South Sudan. These projects collectively aim to address inefficiencies in public finance management, including budget frameworks, public sector spending efficiency, financial controls, reporting, and accountability.

Key Interventions

Enhanced IT Systems: Development and enhancement of IT systems within SSRA to improve revenue administration, tax collection, and promote tax compliance.

Tax Policy Expansion: Implementation and exploration of new areas to broaden the tax base, particularly focusing on value-added tax, hotel tax, and property tax.

Capacity Building: Provision of training and capacity building for project personnel, including technical assistance and on-the-job support from embedded advisors. This includes training at local and regional levels to strengthen the capabilities of SSRA and the Ministry of Finance and Planning.

Equipment Procurement: Procurement of IT equipment to bolster the operational capabilities of tax authorities and improve internal training.

Expected Outcomes

Improved Revenue Mobilization: Strengthening SSRA’s capacity to mobilize non-oil revenue through enhanced tax administration and policy implementation.

Enhanced Accountability: Implementation of measures to improve financial controls, reporting mechanisms, and accountability within South Sudan’s revenue collection processes.

 

The NORMA II project is expected to contribute significantly to South Sudan's efforts in diversifying its revenue sources away from oil dependence. By improving tax administration, expanding the tax base, and enhancing institutional capacities, the project aims to foster sustainable economic growth and development in the country. The African Development Bank’s support underscores its commitment to promoting economic stability and governance in South Sudan.