An $18.15 million facility from the African Development Bank (AfDB) will enable South Sudan to apply for membership in the African Trade Insurance (ATI) and Trade and Development Bank (TDB).
This is a prerequisite for these institutions to start operating in the country and a move geared towards promoting and facilitating private sector investment in the fragile environment.
The AfDB’s African Trade Insurance provides medium to long term credit and political risk insurance and other mitigation products to member countries and related public and private sector players while the Trade and Development Bank finances and fosters trade, socio-economic development and regional economic integration by offering debt, equity, quasi-equity and guarantees to the public and private sectors across its RMCs.
Membership in these bodies will help South Sudan leverage the available limited resources by mobilizing additional significant resources that can be invested in importation of essential goods such as medicine, foodstuff, communication equipment and spare parts; rehabilitation of basic infrastructure; and strengthening of the country’s productive sector.
These institutions encourage and facilitate foreign direct investment (FDI); private sector investments; and intra- and extra- African trade through Trade Finance Facilitation.
The ATI particularly catalyzes private sector investments in infrastructure projects, promoting the economic integration of participating countries into regional markets.
Following this memberships, it is expected that South Sudan will benefit from a total of investment of up to $300 million which will be invested in various initiatives in tradable sectors.
The trade facilitation initiative is informed by a fragility assessment study carried out by the AfDB and aligned with its strategy for addressing fragility and building resilience in the continent.