(JUBA) – South Sudan’s outstanding debt to the East African Community could climb to nearly 24 million US dollars if the government does not meet its annual payment obligations, a member of the regional parliament has warned.
The country currently owes about 10 million dollars in arrears after the most recent EAC Summit agreed to cancel half of an accumulated debt of roughly 21 million dollars. However, the annual contribution of about 7 million dollars for the 2025/2026 financial year remains unpaid and will be added to the balance.
Speaking on Eye Radio, Hon. Kim Gai, a South Sudanese representative at the East African Legislative Assembly, said the summit decision halved the three year backlog but did not erase the current year’s dues.
He explained that the 21 million dollar arrears had built up over three years of nonpayment. The summit waived half, leaving roughly 10 million dollars still owing. With the new financial year beginning, the 7 million dollar contribution will bring the total debt close to 24 million dollars.
Gai proposed that South Sudan adopt a payment plan similar to Rwanda. He suggested quarterly instalments to regional and international bodies instead of allowing large sums to pile up.
He noted that obligations extend to IGAD, the African Union, foreign missions and United Nations agencies. Paying smaller amounts each month or quarter, he argued, would make the debt manageable and prevent it from reaching crisis levels.
Gai said Rwanda’s model sees all regional and international commitments settled every three months. Under such a system, a mission or embassy knows funds will arrive regularly, keeping amounts small and clearing annual dues within a year.
He also urged the government to give priority to strengthening security institutions. A professional and well equipped security sector, he said, would attract investors who currently stay away due to concerns over safety. Better security, he added, would unlock business, create jobs and support economic growth.
South Sudan joined the EAC in 2016. Member states are required to pay annual contributions to fund the running of regional bodies, including the East African Legislative Assembly, the East African Court of Justice and the EAC Secretariat, as well as programmes covering trade, infrastructure, security, education, health and economic integration.