South Sudan faces economic and humanitarian crises as donor aid declines

South Sudan is set to confront deepening economic and humanitarian challenges as international donor assistance continues to fall sharply, according to two new reports released by the World Bank.

Speaking to journalists in Juba, World Bank Group country manager for South Sudan Charles Undeland said official development assistance to the country in 2025 had dropped to half of the average levels recorded between 2019 and 2024. He warned that the decline in funding threatens to severely affect humanitarian support and public services in one of the world’s most fragile states.

The findings were contained in the World Bank’s Public Finance Review and the Country Climate and Development Report, both launched in partnership with the South Sudanese government. The reports are expected to guide policy decisions as the country grapples with mounting fiscal pressures, climate risks and widespread humanitarian needs.

South Sudan faces economic and humanitarian crises

Undeland noted that U.S. aid to South Sudan has fallen by about 80 percent, while support from the European Union has declined by roughly 20 percent. As a result, humanitarian assistance, particularly in food security and nutrition, is expected to shrink significantly. Funding cuts are also projected to affect education, healthcare and other essential public services.

Beyond aid reductions, South Sudan is facing growing climate-related risks. Undeland warned that the country could experience devastating floods over the next two decades, further undermining livelihoods and economic stability. He said climate shocks could reduce South Sudan’s gross domestic product by as much as 13 percent by 2050 if mitigation and resilience measures are not urgently strengthened.

“The longer investments in resilience are delayed, the more livelihoods will be disrupted and the greater the pressure on households’ welfare and well-being,” Undeland said.

Deputy Minister of Finance and Planning Yien Gach Ruey said the two World Bank reports offer practical recommendations to improve fiscal efficiency, strengthen domestic revenue mobilisation and support economic recovery. He highlighted the importance of the climate and development report in helping authorities prioritise investments in flood-risk mitigation and resilience-building, particularly in vulnerable rural communities.

South Sudan remains heavily dependent on humanitarian assistance following years of conflict, economic instability and recurring climate disasters. Analysts warn that without sustained international support and stronger domestic reforms, the country risks sliding deeper into economic hardship and humanitarian distress.

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