The European Union and Sweden Sign Agreements in Support of the Newly Established South Sudan Multi-Donor Transition Trust Fund

JUBA, January 30, 2023- The European Union (EU) and Sweden today signed agreements with the World Bank in Juba to contribute EUR 3 million and SEK 30,000,000, respectively, in support of the newly activated South Sudan Multi-Donor Transition Trust Fund (MDTTF).

The MDTTF will be administered by the World Bank and seeks to provide targeted funding for critical capacity-building in key Government institutions and to help create an enabling environment for inclusive economic growth. The MDTTF also aims to serve as a platform for coherent policy dialogue between the Government of South Sudan and development partners on core economic and governance reform priorities.

Activities under the MDTTF will aim to strengthen the capacity, transparency and accountability of Government systems at all levels and to build greater civilian and private sector confidence in the capacity of the state. A specific focus of these planned activities will be to support the country's public financial management reform (PFM) agenda. The activities will also seek to promote policy reforms, financial inclusion, private investment, core data collection, strategic public planning, women's economic empowerment, and investments in human development.

Reflecting on the EU's decision to support the MDTTF, EU Ambassador Timo Olkkonen said, "We believe it is important to contribute to the Multi Donor Transition Trust Fund (MDTTF) in order to support a transition from a humanitarian to a more development-oriented approach. We sincerely hope this program will enable the government to mobilise and allocate more of its own resources towards key sectors benefiting the population - such as health and education - and that these resources will be managed efficiently and responsively. South Sudan is now at a pivotal juncture in its transition process, and it is crucial that it steps up reforms to strengthen governance and institutions, improve service delivery and strengthen the social contract in the country."

As to Sweden's backing of the MDTTF, Tomas Brundin, Head of the Embassy of Sweden's Office in South Sudan, noted that "Sweden's contribution of around USD 2.9 million represents a serious effort to help South Sudan get to the right place; by enhancing the government's responsibility for service delivery, improving public financial accountability and promoting progressive economic reforms that together will contribute to sustainable and economic development in line with the peace agreement."

Representing the World Bank Group, Firas Raad, World Bank Country Manager for South Sudan, expressed gratitude to the partners for their strong commitment to the MDTTF and said that ''we hope that this new World Bank-administered Multi-Donor Trust Fund will help catalyse change in South Sudan --by enhancing public sector effectiveness and by helping to build an enabling environment for growth, job creation and poverty reduction. The overriding objective is to help the country transition to a new and more sustained phase of economic development." Raad added that "we know from prior experience in South Sudan that trust funds are not panaceas; however, with this targeted effort, we believe we can help advance the development agenda.''

The MDTTF will implement its activities for an initial four-year period using a phased approach that is aligned with the Government's national development strategy. The approach will also be informed by the comparative advantage of the World Bank Group and supported by the contributing donors. The Fund will be governed by a Partnership Council comprised of contributing donors and co-chaired by the World Bank and South Sudan's Minister of Finance and Planning. The first MDTTF activities are expected to be endorsed at an inaugural Partnership Council meeting scheduled for March 2023.

Media Contacts:

In Juba: Lomoro A. John Sindani, +211 925 472 380, [email protected]