The International Monetary Fund or IMF in its report released last week said South Sudan faces acute challenges of fractured politics, weak institutions and capacity, underdevelopment and corruption.
The report explained that distortions in the foreign exchange market and extra-budgetary expenditures remain significant, foreign exchange reserves are critically low, and near-term prospects for a durable political settlement are uncertain.
The report that followed a number of consultative meetings in Washington and Juba
on policies to establish economic stability and reforms to build the state legitimacy, improve cooperation with the international community and attract investment.
The consultation recommended ensuring political inclusion and lasting peace, reforming the foreign exchange market and unification of the exchange rate.
It suggested improvement of budget execution, repairing non-oil revenue administration and fostering transparency and accountability in oil, fiscal and central bank operations.
The consultation called for reforms to reduce fragility comprising the implementation of provisions in oil and public financial management legislation and well-prioritized demobilization and public investment plans.