Juba — At least €3 million has been earmarked to enhance South Sudan's microeconomic policies and institutions, the European Union (EU) announced on Thursday.
Francesco Mosca, the EU Development and Cooperation (DEVCO) Director (L) and IMF Deputy Managing Director, Nemat Shafik, September 20, 2012 (photo EU)
The donation, the EU said in a statement, will be channeled through the International Monetary Fund (IMF) trust fund, specifically aimed at developing skills and polices in the young nation, through IMF's expert capacity development activities.
The agreement, which was reportedly signed by Francesco Mosca, the EU Development and Cooperation (DEVCO) Director for Sub-Saharan Africa and IMF Deputy Managing Director, Nemat Shafik, has also been earmarked to support capacity building in statistics.
"The European Union has made it a priority to help the South Sudanese Government to respond to the country's multiple economic and development challenges. By becoming the principal donor to the Trust Fund, the EU wants to forge a privileged relationship with the IMF, and concert efforts towards strengthening economic governance in South Sudan," said Mosca, in a statement extended to Sudan Tribune.
The DEVCO Director, however, noted that South Sudan will effectively manage its abundant resources for the benefit of its people, only if it focused on creating strong institutional structures, by applying coherent and state-of-the-art policy frameworks.
Shafik also welcomed the EU's support to South Sudan, saying sustained and inclusive growth requires sound macroeconomic policies, good governance, and development-oriented budgets and policies.
"(..)Strengthening South Sudan's capacity will need not only intensive investment, but importantly effective cooperation between donors and technical assistance providers," remarked the IMF Deputy Director.
The trust fund, with a participatory steering committee that includes donors and the authorities of South Sudan, provides a crucial mechanism to coordinate, prioritize and evaluate our work, she added.
The EU Council, in June this year, allocated €12.5m to strengthen security in South Sudan's aviation industry, especially within Juba international airport.
Up to 64 personnel will, as part of the process, be deployed in Juba effective from this month over a 19-month period, under the EU Aviation Security (EUAVSEC), which falls within the docket of EU's Common Security Defence Policy (CSDP).
In particular, EUAVSEC South Sudan will train and mentor security services, provide advice and assistance on aviation security, as well as support the coordination of security activities, but without any executive-related duty.