By Charles K Mark
Finance minister from the Arab Republic of Egypt calls for memorandum of understanding to end double taxation in South Sudan.
Mohammed Ahmed Mohammed made the appeal on Monday, during his opening speech of the first ever South Sudan economic conference in Juba.
“We hope that we shall sign very soon in the future, the agreement to avoid double taxation and other agreements which would be a catalyst to joint investment in both directions,” the Egyptian minister said.
Mohammed said that the relationship between Egypt and South Sudan has prime economic aspects.
He pointed that the opportunities range from mutual investments to increasing bilateral trade and sharing expertise to face current economic as well as financial challenges.
“In Egypt, we are encouraging our private sector to establish new partnership in South Sudan, and we hope that the result of this pivotal economic conference will serve as a catalyst to enhance our joint investment endeavors,” the Minister added.
The minister said Egypt welcomes enhancing mutual cooperation and exchange of expertise.
Mohammed recalled a pledge by his President Abdel Fattah El-Sisi during a visit to Juba in November 2020.
“President Fattah El-Sisi emphasized Egypt’s commitment to sharing expertise, offering technical support and building local capacities in South Sudan,” he said.
The minster also expressed Egypt’s readiness to cooperate and sign Memorandum of Understanding (MoU) for immediate transfer of expertise in establishing what he called Treasury Single Account (TSA), and Government Financial Management Information System (GFMIS).
Mohammed further pledged Egypt’s commitment to share experience on digitalization of taxation system, such as E-invoice, E-receipt and public finance management in an electronic platform.
“We are willing to provide valuable technical assistance and capacity building support to help South Sudan establish and strengthen its financial institution, regulatory frameworks and payment systems,” the minister stressed.
He said mutual cooperation between the two countries was imperative to enhance resilience in tackling challenges such as debt issues, inflation and pressure on local currencies.
“Egypt is confronting these challenges through a bundle of measures at both the domestic and international levels regarding the issue of debt that most countries are currently facing and suffering, particularly developing nations,” Mohamed said.
He noted that stringent financial policies of major countries that have led to the outflow of capital from developing and emerging markets to major markets are responsible for the current economic woes.
“The severe difficulties our countries face in securing development financing is unfavorable,” the finance minister lamented.
He added that an economically diverse landscape with each sector harmoniously contribute to sustainable growth and development.
Samuel Doe UNDP Country Representative in South Sudan (Photo by Bida Elly David)
Meanwhile, the UNDP resident representative, Samuel Doe, thinks development partners have played key role in building tax administration capacity, promoting tax compliance, harmonization of tax laws and jurisdiction between national and state revenue authorities.
“This is a work in progress, but we can attest to the fact that the country is on the path of transforming its tax system as vital tool for economic growth and improvement of public services,” Doe expressed.
The UNDP Country Representative observed that the success of international cooperation requires the leadership of the government and people of South Sudan.
“It requires the demonstration of good governance, the creation of attractive environment for investment, transparency, accountability and the rule of law must underpin all reforms efforts,” Doe said.
The UN agency’s boss urged the government of South Sudan to harness the collective power of nations and organizations here to pave the way for a brighter economic future.
“By leveraging aid, trade agreements, technical expertise and partnership with international and regional organizations, you will usher in an era of sustained growth, job creation and prosperity for all your citizens,” he stressed.