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The Republic of South Sudan became the world’s youngest nation and Africa’s 54^th country on July 9, 2011. Since then, the country has faced significant challenges, including outbreaks of civil war (2013, 2016), subnational violence, and political contestation. These factors, along with weak management of public resources, have hindered development and intensified humanitarian needs.

The Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan (R-ARCSS) signed in Sept. 2018 and the formation of a Transitional Government of National Unity in Feb. 2020 have contributed to stability. The transitional period was extended to Feb. 2027, giving more time for the government to implement provisions in the R-ARCSS and prepare the country for elections. Despite positive steps, the peace process faces challenges, such as unification of armed forces and drafting of a permanent constitution.

South Sudan remains in a serious due to conflict and insecurity, high cost of living, intercommunal violence, and food insecurity which have severely affected people’s livelihoods and hindered access to essential services.

The ongoing inflow of returnees and refugees from Sudan is exasperating this situation. 7.7 million (57% of the population) are projected to face crisis-level or more severe acute food insecurity from April to July 2025. 85% of returnees are also facing this. Malnutrition rates remain alarmingly high among children and women - more than 2.1 million people at risk of acute malnutrition by the end of 2025. As of Oct. 2025, estimates show South Sudan is hosting more than 900,000 refugees and asylum-seekers from Sudan and that 337,000 more refugees, will arrive in 2025.

It is critical to implement the peace agreement, strengthen service delivery and institutions, improve governance and economic management, and address fragility to build resilience against shocks and lay the foundation for diversified, inclusive growth.

ECONOMY

The economy contracted by an estimated 23.8% in FY25, driven by a year-long shutdown of the Dar Blend pipeline (February 2024–2025), which carries 63% of South Sudan’s oil through conflict-affected Sudan. Monetized fiscal deficits triggered sharp currency depreciation and hyperinflation, while extreme poverty surged to nearly 91% in 2025, pushing an additional 3 million people into poverty.

The outlook hinges on restoring political and macroeconomic stability, strengthening governance, and managing natural resources transparently. In the near term, the resumption of Dar Blend oil production will deliver a temporary boost to GDP growth, though risks remain from conflict-related disruptions in Sudan. Agricultural output is also expected to rebound from flood-related losses, supported by expanded land use. Sustained growth, however, will require attracting investment—particularly FDI—into both oil and non-oil sectors. Investor confidence is undermined by the exit of Petronas, ongoing legal disputes in the oil industry, and frequent leadership changes that heighten policy uncertainty.

Risks are tilted to the downside. Incomplete implementation of the 2018 peace agreement could reignite conflict, further weakening governance and macroeconomic stability. Oil revenues may underperform if global demand slows or if Sudan’s conflict disrupts flows. Climate shocks, especially flooding, pose additional risks to agriculture and food security. These challenges underscore the urgent need for governance and structural reforms to bolster resilience and lay the foundations for sustainable, inclusive development.

Last Updated: Oct 06, 2025

ľ¹ÏÓ°Ôº Group (WBG) has been actively engaged in South Sudan since the creation of the autonomous Government of Southern Sudan in 2005. As of September 2025, the WBG portfolio stands at $1.18 billion, encompassing eleven national and two regional operations.  These projects span a wide range of sectors, including governance, education, health, social protection, financial sector, agriculture, women’s empowerment, energy, water, digital development, and community resilience. The Bank’s efforts are centered on strengthening institutions, improving livelihoods, and enhancing service delivery. Key priorities include supporting economic recovery and poverty reduction, fostering community resilience and advancing public sector reforms.

Last Updated: Oct 06, 2025

During South Sudan’s extended transitional period the World Bank Group’s program continues to focus on the three areas outlined in its FY21-23 Country Engagement Note: (a) laying the groundwork for institution building, (b) continuing support for basic public service delivery, and (c) promoting resilience and livelihood opportunities with social inclusion, especially for youth and women, as a cross-cutting principle.

Key targeted outcomes from this approach are building state effectiveness to deliver for the South Sudanese people and enabling the creation of more and better jobs and livelihoods. ľ¹ÏÓ°Ôº also maintains strong partnerships and collaborates regularly with development and humanitarian partners, the private sector, UN agencies, non-governmental organizations (NGO), and civil society organizations (CSOs) in South Sudan.

Last Updated: Oct 06, 2025

The improved access to basic services for 350,000 people (54% women) in 233 villages across 12 counties with construction and rehabilitation of community facilities. The project constructed 74.2 km of dikes and 4 km of drainage, restoring 83sq.km of land and benefiting over 218,000 people in 5 counties. 233 community institutions and 1,600 operations and maintenance committee members have been trained and strengthened. ECRPII has generated employment for over 720 (275 skilled and 452 unskilled) of which 26% are women.

The has improved agricultural productivity and food security, reaching 244,974 small-holder farming households, providing them with assets, improved technologies, and services to enhance their production capacity. The project increased community access to quality seeds, boosting crop yields alongside expansion in areas under cultivation. The seeds now meet nearly seven months' worth of cereal needs for participating households. 1.4 million livestock were vaccinated and 343,810 animals have received treatment. 98 fisheries groups were established and support diversified livelihoods and improved nutrition. The project formed and strengthened 881 farmer groups and cooperatives, promoting strong participation from women and youth.

The standardized malaria case management and 2,646 health workers were trained in 76 counties. Campaigns vaccinated 5.6 million people against cholera, 2.4 million children against measles, and 3.3 million children against polio.

Health workers managing childhood illnesses treated 703,578 malaria cases, 686,966 pneumonia cases, and 599,152 diarrhea cases among children under five. HSTP has delivered three national cycles of essential medicines and health commodities with 89% of the supply successfully delivered to facilities laying the groundwork for a more resilient health system. 

Last Updated: Oct 07, 2025