South Sudan Takes Helm of EAC with Debt Clearance and Financial Commitment

Arusha, Tanzania | THE BLACK EXAMINER | Juba is embarking on its inaugural term as the chair of the East African Community (EAC) with a clean financial slate and a commitment to maintaining it. This comes after the heads of state summit granted leniency by waiving a portion of the debt owed by Juba in unfulfilled contributions to the bloc.

President Salva Kiir of South Sudan, addressing the EAC heads of state summit in Arusha on Friday upon assuming leadership of the bloc, disclosed that they have settled their outstanding debt of $15 million. The summit had generously forgiven more than half of the $36 million in arrears previously owed by South Sudan.

Expressing gratitude, President Kiir stated, “I sincerely appreciate the EAC heads of state for waiving the arrears accrued to South Sudan. From now onwards, South Sudan commits to remit its required annual contribution on a timely basis.”

Kiir clarified that their delay in contributing to the EAC’s funds, vital for the bloc’s day-to-day operations, was due to internal challenges related to “peace implementation.” These challenges also hindered South Sudan’s full integration into the community since joining in 2016.

“As a partner state, South Sudan is fully aware of its treaty obligations, particularly regarding the harmonization of laws and policies. We are equally aware of our required obligations for the functioning of the community,” Kiir affirmed.

Before assuming leadership, South Sudan held the highest outstanding dues to the EAC and was perceived as lacking interest in bloc matters, having yet to align its customs policies and laws.

Currently, all EAC member states have outstanding annual membership fees, with Burundi leading with a debt of $15.5 million, and the Democratic Republic of Congo owing about $14.7 million, having not contributed since joining. Rwanda owes $7.3 million, Uganda $6.1 million, Tanzania $123,694, and Kenya owes only $20. Delays in remitting annual contributions have strained EAC operations, leading to increased reliance on donor funding.

To address the bloc’s funding challenges, the heads of state summit discussed sustainable financing measures. They decided that, moving forward, 65 percent of contributions to the community will be uniform across all countries, while the remaining 35 percent will be based on assessed ability. The summit also directed the council of ministers to pursue strategic spending rationalization, institutional strengthening, and strict sanctions for defaulting partner states.