Housing Finance in South Sudan
Overview
This profile is also available in French here.
To download a pdf version of the full 2023 South Sudan country profile, click here.
South Sudan’s population was 11,381,377 in 2021, slower than Sub-Saharan Africa (2.6%). Between 2013 and 2020, conflict killed 400 000 people and displaced 2.2 million.(21% city) Urban Juba is 18% 4/5 are poor. Rural poverty is higher (54.2%).
Natural disasters and pandemics hurt the economy. In 2018/19, the GDP rose 13.2% but fell 6%. Pandemic-related transportation restrictions affected the service industry. Floods destroyed 40.000 metric tonnes (3.6%) of cereal in 2021. Arriving bugs. Floods and locusts hurt GDP and food security. 2020–21, the national debt was $2.743 trillion, or 48.7% of GDP. Inflation fell from 70% to 22.8% in 2022. Currency controls helped economies.
South Sudanese earn $1.90 a day, making housing expensive. 91% of urban residents lived in grass-thatched slums in 2018. UN-Habitat South Sudan offers 80 m2 prefabs. In cities, grass-thatched cottages are the cheapest. Tukuls of 28 m2 cost $6.40 (SS£3,250).Rain, flooding, and drought make maintenance expensive. The majority of mud hut dwellers chose SS£25,000 (US$49) 80-square-meter prefabs.The desert heat makes these durable, high-quality homes energy-intensive.
Bank assets account for 16% of GDP (0.3%). Bank assets are 6.7% joint ventures. Rural areas lack banking. 1% of Americans had accounts in 2016. No recent bank account openings 2019 had 104.95 debtors per 1,000 adults; 2022 had 81.65. The 2018 peace agreement boosted 2019, but the epidemic regressed. 1.4 commercial bank branches per 100,000 adults by 2020. There are few ATMs and loans per 1,000 adults. Luxury finance ARMs In 2006, 2009, and 2013, KCB entered South Sudan. Equity Bank lends commercially and residentially. Residential and commercial paybacks are 20 and 10 years. Accessible loan types include built-home, construction, land, and commercial. Mortgage terms affect banks. 2017 saw 1,000 mortgages in South Sudan. 18240 mortgages in each country. land, homes, and construction are financed. South Sudan’s average loan was $5,000, versus $52,500 in Uganda and $73,000 in Rwanda. South Sudanese borrowers got 20 years at 16%–21% interest from East African lenders. In 24 months, land loans cover 85% of property costs and building loans cover 80%.
Find out more information on the housing finance sector of South Sudan, including key stakeholders, important policies and housing affordability:
- Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Legislation
- Opportunities
- Green Applications for Affordable Housing
- Availability of Data on Housing Finance
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.
Download yearbookSouth Sudan
Overview
South Sudan had a population of 11 381 377 in 2021,[1] with a lower population growth rate (1.7%)[2] than the Sub-Saharan Africa (2.6%)[3] average. Extended conflict between 2013 and 2020 has caused more than 400 000 deaths[4] and displaced over 2.2 million people to neighbouring countries.[5] Only 21% of the population is urbanised.[6] The largest city, Juba, is home to 18% of the urban population.[7] Poverty rates are extremely high with four out of every five inhabitants living below the national poverty line.[8] Poverty is more extreme in rural areas (79.6%) compared to urban areas (54.2%).[9],[10] The Revitalized Agreement on the Resolution of Conflict in South Sudan (R-ARCSS) of 2018 helped the country begin its development agenda. However, advances are at risk of being reversed with South Sudan’s President Salva Kiir making new agreements with opposition leaders.[11] The new agreements undermine the 2018 peace accord that had ended a five-year civil war. This has seen renewed conflicts in many states. COVID-19, devastating floods, droughts, persistent locust invasions, increasing food insecurity and ongoing conflict have had a devastating impact with at least 8.9 million people in dire need of humanitarian aid in 2022, a 7.2% increase from 2021.[12]
The economy is also under pressure with crude oil prices declining during the pandemic, and the adverse climatic conditions..[13] Gross domestic product (GDP) decreased by 6% in 2020/21 after a 13.2% increase in 2019/20.[14] The service industry suffered significant losses due to pandemic-related movement restrictions that affected business trading hours. Close to 40 000 tonnes of cereals, comprising 3.6% of the total cereal production in 2021, were destroyed by floods in 2021.[15] This was then followed by a locust invasion. The extensive damage caused by the floods and locusts have undermined economic growth and food security.
Public debt in 2020/21 was SS£1 393 billion (US$2.743 billion), equivalent to 48.7% of GDP.[16] The annual inflation rate was 22.8% in June 2022, down from 70% in January 2021.[17] The improvement is attributed to new exchange rate regulations implemented by the government. The 2019 Article IV Consultation restricted multiple currency practices, and market and official exchange rates converged. The regulations, coupled with the 2018 peace deal, facilitated macroeconomic constancy, causing the currency to stabilise. However, the pandemic disrupted economic activity and caused high levels of exchange rate volatility. As of July 2022, the exchange rate was SS£507.8266 (US$1).[18]
With most of the population (95%) being dependent on climate-sensitive resources for their livelihoods, South Sudan is extremely vulnerable to climate change as rising temperatures, droughts and floods continue to devastate the country.[19] The most severe floods since independencein 2011 occurred between May and November 2021.[20] Over one million people were negatively affected, with 300 000 individuals displaced. This increased the number of internally displaced persons (IDPs) to two million.[21]
The Ministry of Environment and Forestry, the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP) signed a Memorandum of Understanding for the implementation of a SS£4.621 billion (US$9.1 million) four-year project in May 2022 to deal with the impact of climate change on the country. The project will be implemented in accordance with National Adaptation Plan priorities including agriculture, disaster risk management, water resources and building institutional capacity.[22]
[1] World Bank. (2021). Data. Population, total – South Sudan. https://data.worldbank.org/indicator/%20SP.POP.TOTL%20?locations=SS (Accessed 25 August 2022).
[2] World Bank. (2021). Data. Population growth (annual %) – South Sudan. https://data.worldbank.org/indicator/SP.POP.GROW?locations=SS (Accessed 25 August 2022).
[3]Ibid.
[4] ReliefWeb. (2022). South Sudan’s Splintered Opposition: Preventing More Conflict. 25 February 2022. https://reliefweb.int/report/south-sudan/south-sudan-s-splintered-opposition-preventing-more-conflict (Accessed 25 August 2022).
[5] United Nations High Commissioner for Refugees. (2020). UNHCR Regional Update – South Sudan Situation Jan-Feb 2020. https://data.unhcr.org/en/documents/details/74701 (Accessed 25 August 2022).
[6] World Bank. (2021). Data. Rural population (% of total population) – South Sudan. https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=SS (Accessed 25 August 2022).
[7] World Bank. (2021). Data. Population in largest city – South Sudan. https://data.worldbank.org/indicator/%20EN.URB.LCTY%20?locations=SS (Accessed 25 August 2022).
[8] World Bank. (2022). The World Bank in South Sudan. 21 April 2022. https://www.worldbank.org/en/country/southsudan/overview (Accessed 26 August 2022).
[9] The World Bank. (2021). Poverty & Equity Brief. South Sudan. April 2021. https://databankfiles.worldbank.org/data/download/poverty/987B9C90-CB9F-4D93-AE8C-750588BF00QA/AM2020/Global_POVEQ_SSD.pdf (Accessed 28 August 2022). Pg. 1.
[11]Ibid. Footnote 4.).
[12] Ibid. Footnote 4.
[13] Government of the Republic of South Sudan. (2021). Quarterly Economic and Budgetary Review. First and Second Quarters 2021. The Ministry of Finance and Economic Planning. http://www.mofep-grss.org/wp-content/uploads/2021/06/QUARTELY-EBR.pdf (Accessed 26 August 2022). Pg. 11.
[14] African Development Bank. (2022). South Sudan Economic Outlook. https://www.afdb.org/en/countries/east-africa/south-sudan/south-sudan-economic-outlook (Accessed 26 August 2022).
[15] Food and Agriculture Organization of the United States. (2022). Floods in 2021 killed nearly 800-thousand livestock and destroyed more than 37-thousand tons of crops in South Sudan, according to FAO Flood Report. https://www.fao.org/south-sudan/news/detail-events/en/c/1467692/ (Accessed 26 August 2022).
[16] Ministry of Finance and Economic Planning. (2022). Citizen Draft Budget FY 2021/2022. http://www.mofep-grss.org/docs/citizen-draft-budget-fy-2021-2022/ (Accessed 26 August 2022).
[17] Ibid.
[18] Bank of South Sudan. (2022). Exchange Rates. https://boss.gov.ss/exchange-rates/ (Accessed 26 August 2022).
[19] UNDP (2022). UNDP, UNEP, South Sudan government sign USD 9m project to deal with Climate Change. United Nations Development Programme. 19 May 2022. https://www.preventionweb.net/news/undp-unep-south-sudan-govt-sign-usd-9m-project-deal-climate-change#:~:text=Climate%20change%20takes%20toll%20on,conflicts%20and%20a%20macroeconomic%20crisis (Accessed 20 September 2022).
[20] World Bank. (2022). The World Bank in South Sudan. https://www.worldbank.org/en/country/southsudan/overview (Accessed 26 August 2022).
[21] International Organization for Migration Displacement Tracking Matrix. (2022). South Sudan. https://dtm.iom.int/south-sudan (Accessed 25 August 2022).
[22] UNDP (2022). UNDP, UNEP, South Sudan government sign USD 9m project to deal with Climate Change. United Nations Development Programme. 19 May 2022. https://www.preventionweb.net/news/undp-unep-south-sudan-govt-sign-usd-9m-project-deal-climate-change#:~:text=Climate%20change%20takes%20toll%20on,conflicts%20and%20a%20macroeconomic%20crisis (Accessed 20 September).
Access to Finance
The financial sector is made up of numerous bank and nonbank institutions. The Bank of South Sudan regulates and supervises 30 operating banks,[1] 24 of which are foreign.[2] Many of these entered South Sudan after the 2005 Comprehensive Peace Agreement (CPA), which was designed to conclude the civil war through the equitable distribution of oil revenues and the ushering in of democracy. Investors were attracted by the extensive oil revenue and the high number of people who do did not have access to banking services. However, persistent subnational conflict and weak regulations have hindered growth significantly, which has also impacted banks. While 11 domestic banks were considered highly insolvent in 2019, this did not pose substantial risk as domestic banks control only 16% of total banking assets, or 0.3% of the GDP.[3] Foreign banks hold 77% of banking assets and joint-venture banks hold 6.7% of banking assets.[4]
Overall access to financial services is poor, given that most of the population is rural. Only 1% of residents had bank accounts in 2016.[5] No recent data is available to determine overall changes in bank account registration since then. The number of borrowers per 1 000 adults was 81.82 in 2018 and 104.95 in 2019, dropping to 81.65 in 2022.[6] The peak in 2019 was attributed to macroeconomic stability related to the 2018 peace deal, but the pandemic reversed the gains. In 2014, the rate of commercial bank branches was 1.9 for every 100 000 adults, but this number dropped to 1.4 in 2020.[7] Only 0.7 ATMs are available per 100 000 individuals, and for every 1 000 adults, only 0.9 borrow from banks.[8] Overall, the financial sector is largely cash-based.
Lenders have varied product offerings. The biggest lenders include the Kenya Commercial Bank (KCB), which entered South Sudan in 2006, Equity Bank, which entered the country in 2009, and the Cooperative Bank, which entered the country in 2013. Equity Bank offers mortgages for the construction or purchase of residential or commercial buildings. The maximum repayment period is 20 and 10 years for residential and commercial buildings, respectively.[9] KCB offers several products, including already built homes, construction loans, land loans, and commercial loans. Each bank’s terms and conditions influence access to housing financing. South Sudan had less than 1 000 housing finance loans in 2017, which was extremely low compared to other Sub-Saharan countries. At the time, Kenya had 18 240 housing loans and Tanzania had 7 000.[10] These loans covered the purchase of land, already-built houses, and construction. The average loan size was also very low in South Sudan, at SS£2 539 133 (US$5 000), compared to Uganda’s SS£26 660 896.50 (US$52 500) or Rwanda’s SS£37 071 341,80 (US$73 000).[11] South Sudanese borrowers were expected to pay their loans within five years, at a 24% interest rate, while lenders in other East African countries were allowed up to 20 years at 16%-21% interest.[12] Land loans finance 85% of the total property costs to be repaid in 24 months, while loans meant for both purchasing land and building cover 80% of total costs to be settled in 10 years.[13],[14] Equity Bank South Sudan has achieved significant milestones, albeit with significant challenges. The 2021 audited financial statements indicated that the lender had 171 912 customers, 18 ATMs, five branches, and 39 agents in the country.[15] These figures represented a 5% increase in customer numbers from 163 603 in 2020.[16] Expectations are that access to finance will have increased as customer numbers increase, yet statistics indicate otherwise.
Women’s access to finance is highly limited by social norms, low educational achievement, and institutional policies. Non-banking institutions, such as Women’s WorldWide Web (W4), have made microfinance interventions to increase access to financial services. W4 provides women with small loans of SS£63 478 (US$125) to be repaid at 20% interest within 12 months. Beneficiaries use the loans to establish small businesses and support their families.[17] Additional assistance is provided by the South Sudan Women and Social and Economic Empowerment Project, which recently received SS£9 119 million (US$70 million) from the International Development Association to facilitate microloans to women in business. Such efforts promote inclusive development.[18]
[1] Bank of South Sudan. (2022). List of Banks. https://boss.gov.ss/list-of-banks/ (Accessed 27 August 2022).
[2] African Development Bank. (2016). Extension of the 2012-2016 Interim Country Strategy
Paper (I-Csp) to December 2018 And Country Portfolio Performance Review (Cppr) 2016. https://www.afdb.org/sites/default/files/2019/07/09/south_sudan_-_extension_of_the_2012-2016_interim_country_strategy.pdf (Accessed 28 August 2022). Pg. 5.
[3] International Monetary Fund. (2022). Republic of South Sudan 2022 Article Iv Consultation And Second Review Under The Staff-Monitored Program. https://www.imf.org/en/News/Articles/2022/08/02/pr22283-republic-of-south-sudan-imf-2022-art-iv-and-management-second-review-staff-monitored-progra (Accessed 27 August 2022).
[4] Ibid.
[5]African Development Bank. (2016). Extension of the 2012-2016 Interim Country Strategy
Paper (I-Csp) To December 2018 And Country Portfolio Performance Review (Cppr) 2016. https://www.afdb.org/sites/default/files/2019/07/09/south_sudan_-_extension_of_the_2012-2016_interim_country_strategy.pdf (Accessed 28 August 2022). Pg. 5.
[6] International Monetary Fund. (2022). Financial access survey. https://data.imf.org/?sk=E5DCAB7E-A5CA-4892-A6EA-598B5463A34C&sId=1460043522778 (Accessed 28 August 2022).
[7] World Bank. (2020). Commercial bank branches (per 100,000 adults) – South Sudan. https://data.worldbank.org/indicator/FB.CBK.BRCH.P5?locations=SS (Accessed 27 August 2022).
[8] Ibid.
[9] Equity Bank. Diaspora Mortgage/Construction Loan. https://equitygroupholdings.com/ss/borrow/diasporaa-mortgage-construction-loan (Accessed 27 August 2022).
[10] Kayiira. D. (2017). Landscape of Housing Investments in Eastern Africa. www.auhf.co.za/wp-content/uploads/2020/12/Day2_08h00_Kayiira_Consultant-Presentation_Eastern-Africa-Investment-Landscape-Presentation.pdf (Accessed 27 August 2022). Pg. 28.
[11] Ibid. Pg. 28.
[12]Ibid. Pg. 28.
[13] Kenya Commercial Bank. Mortgages. Buy Plot and Construct. https://ss.kcbgroup.com/for-you/get-a-loan-ss/mortgages/buy-plot-and-construct (Accessed 28 August 2022).
[14] Kenya Commercial Bank. Mortgages. Buy Plot. https://ss.kcbgroup.com/for-you/get-a-loan-ss/mortgages/buy-plot (Accessed 28 August 2022).
[15] Equity Bank. (2022). 2021 Integrated Report & Financial Statements. https://equitygroupholdings.com/wp-content/uploads/2022/06/EGH-PLC-2021-Integrated-Report-and-Financial-Statements.pdf (Accessed 27 August 2022). Pg. 82.
[16]Ibid..
[17] Women’s WorldWide Web. (2022). Empower Women Refugees From South Sudan With Microcredit. https://www.w4.org/en/project/empower-women-returnees-south-sudan-with-microloans/ (Accessed 29 August 2022).
[18] ReliefWeb. (2022). South Sudan Receives $70 million to Support Women’s Social and Economic Empowerment and Strengthen Institutional Capacity. https://reliefweb.int/report/south-sudan/south-sudan-receives-70-million-support-womens-social-and-economic-empowerment-and-strengthen-institutional-capacity (Accessed 28 August 2022).
Affordability
High levels of poverty and extreme food insecurity are persistent barriers to housing affordability, with 76.4% of the population living below the international poverty line of US$1.90 a day.[1] The pandemic slashed household purchasing power, as over half of the population reported decreased earnings from their main income source since the start of the pandemic. Safe and affordable housing remains out of reach for most South Sudanese.
As of 2018, 91% of the urban population were living in slums.[2] Slum houses are substandard, constructed with non-durable materials. Households lack access to basic sanitation facilities, safe and consistent water supply, and law enforcement. The most common low cost housing alternative in urban areas is a traditional grass thatched hut. These houses are popularly referred to as Tukuls, are 28m2 in size and cost approximately SS£3 250 (US$6.40) to construct.[3] The homes are easy to build, but maintenance costs are high because of vulnerability to rain, flooding, and extreme, dry weather.
Most households upgrading from the mud hut often go for 80m2 prefabricated houses, which cost SS£25 000 (US49). These are high-quality houses from durable building materials, with high energy costs due to air conditioning in the desert climate. Poor maintenance causes these houses to quickly become dilapidated, leading to higher losses in the long term. UN-Habitat has provided more cost-effective housing alternatives for low income earners. These are bigger (180m2), strong enough to withstand floods, and constructed by trained masons. However, these prefab houses cost SS£38 673 (US$76) and the raw materials are harder to find locally, which makes this alternative unattainable for many people.
Another key indicator of unaffordability is that the implied monthly income for South Sudanese borrowers to access these mortgages was SS£203 131 (US$400) in 2017.[4] Not many inhabitants can earn this much monthly. ReliefWeb noted that the average daily labour wage rate was SS£2 158 (US$4.25) for unskilled personnel in 2019.[5] Semi-skilled staff earned approximately SS£2 844 (US$5.6), whereas professionals took home SS£3 859 (US$7.6). These figures fall below the implied monthly income needed to access mortgages. Borrowers seeking a mortgage to buy an already-built house or land on which to construct a house must demonstrate the capacity to meet 40% of the total project costs.[6] As a result, many families cannot afford mortgages to do this or to purchase already-built houses.
[1] The World Bank. (2021). Poverty & Equity Brief. South Sudan. April 2021. https://databankfiles.worldbank.org/data/download/poverty/987B9C90-CB9F-4D93-AE8C-750588BF00QA/AM2020/Global_POVEQ_SSD.pdf (Accessed 28 August 2022). Pg. 1.
[2] The World Bank. Data. Population living in slums (% of urban population) – South Sudan. https://data.worldbank.org/indicator/EN.POP.SLUM.UR.ZS?locations=SS (Accessed 28 August 2022).
[3] Murillo, F. (2012). Comparing Shelter and housing strategies in South Sudan. United Nations High Commissioner for Refugees (UNHCR) and UN Habitat. https://www.academia.edu/6138232/Comparing_shelter_and_housing_strategies_in_South_Sudan (Accessed 28 August 2022). Pg. 6.
[4] Kayiira. D. (2017). Landscape of Housing Investments in Eastern Africa. www.auhf.co.za/wp-content/uploads/2020/12/Day2_08h00_Kayiira_Consultant-Presentation_Eastern-Africa-Investment-Landscape-Presentation.pdf (Accessed 27 August 2022). Pg. 28.
[5] ReliefWeb. (2022). South Sudan, Daily Labor Wage Rate (August 2019). https://reliefweb.int/report/south-sudan/south-sudan-daily-labor-wage-rate-august-2019 (Accessed 27 August 2022).
[6] Kenya Commercial Bank. Mortgages. https://ss.kcbgroup.com/for-you/get-a-loan-ss/mortgages/buy-already-built-homes-home-loan (Accessed 27 August 2022).
Housing Supply
Adverse climate change-related events and years of conflict have displaced more than 1.6 million people in South Sudan internally, while an additional 2.2 million are refugees in neighbouring nations.[1] These residents are now seeking housing as IDPs and returnees, thus increasing the demand for low cost housing and exacerbating the deficit in housing supply. The United Nations High Commissioner for Refugees had documented 507 506 spontaneous refugee returnees as of July 2021. However, the property market is inadequately prepared to house IDPs and returnees.
Added to this, the urban population is growing fast, but without corresponding developments in housing supply. Juba’s population grew by 31.2% between 2015 and 202,[2] driven by influxes into the city resulting from crop failure, regional conflict, food insecurity, and extreme poverty. Land disputes and forceful evictions are increasing as the incoming population occupy unregistered lands illegally.[3] Competition for basic resources and employment opportunities is also increasing. About 55% of the urban population live in unplanned areas with little to no access to sanitation facilities, safe housing, or transportation.[4] Years of armed conflict have also undermined tenure security and been a deterrent to large investments in the real estate sector.
Slums and informal settlements in urban areas have grown exponentially. Most slum dwellers live in makeshift houses constructed with non-durable, locally available materials like mud, plastic, and straw. Buying or renting homes in Juba is extremely expensive for low income earners, primarily because most building materials are imported. Unaffordable prices for low income earners are also attributed to homelessness in 20% of the population since 2013.[5] In the 2020/21 approved budget, the Ministry of Finance and Economic Planning (MoFEP) committed to rebuilding 50 low cost units in Juba and delivering 5 000 new affordable units. While this would be a vital intervention for bridging the housing supply gap,[6] there is no evidence that MoFEP has implemented these plans. UN-Habitat has delivered 600 low-cost houses and maintained 3 600 returnees in decent houses across the country, working closely with the Ministry of Land, Housing and Physical Planning.[7] Combined, private property developers delivered only 1 090 units between 2014 and 2016, a rate that was too low to meet the growing need for affordable houses.[8]
Many people opt for unoccupied lands, while others rent plots and houses at low prices. The South Sudan NGO Forum conducted an extensive study on land, property and housing issues and discovered that armed guerrillas often encourage returnees to settle in their territories to boost their political legitimacy and charge rent from the money that people get from humanitarian organisations. Land tenure laws are highly ambiguous.[9] Most leaseholders are unaware of the length of their rental term and make the most of their rented plots while awaiting eviction.
The CPA of 2005 established a relatively stable government and leasing regulations, but these laws have not been fully executed across the country. Widely varying leasing rates are a further indication of poor regulation.[10]
[1] United Nations High Commissioner for Refugees. (2020). UNHCR Regional Update – South Sudan Situation Jan-Feb 2020. https://data.unhcr.org/en/documents/details/74701 (Accessed 25 August 2022).
[2] World Bank. (2021). Data. Population in largest city – South Sudan. https://data.worldbank.org/indicator/%20EN.URB.LCTY%20?locations=SS (Accessed 25 August 2022).
[3] Deng, D. (2019). Housing, Land and Property Disputes in South Sudan. https://docs.southsudanngoforum.org/sites/default/files/2020-11/SSLS_HLP-report_final-003.pdf (Accessed 27 August 2022). Pg. 2.
[4] Oxfam. (2019). Oxfam Urban Programming: Country Brief South Sudan. https://cng-cdn.oxfam.org/heca.oxfam.org/s3fs-public/file_attachments/19.11.2019_South%20Sudan%20Country%20Profile%20(1).pdf (Accessed 25 August 2022). Pg. 5.
[5] Chao, Z. (2020). Homelessness in South Sudan. https://borgenproject.org/homelessness-in-south-sudan/ (Accessed 15 September 2022).
[6] The Ministry of Finance and Planning. (2020). South Sudan – National Budget Plan 2020-2021. http://www.mofep-grss.org/wp-content/uploads/2020/12/National-Budget-Plan-FY-2020-2021-.pdf (Accessed 27 August 2022). Pg. 59.
[7] Kayiira, D. (2017). South Sudan Landscape of Investment. December 2017. Centre for Affordable Housing Finance Country Report. https://housingfinanceafrica.org/app/uploads/South-Sudan_-FINAL-.pdf (Accessed 31 August 2022). Pg. 2.
[8]Ibid..
[9] Deng, D. (2019). Housing, Land and Property Disputes in South Sudan. https://docs.southsudanngoforum.org/sites/default/files/2020-11/SSLS_HLP-report_final-003.pdf (Accessed 27 August 2022). Pg. 4.
[10] Deng, D. (2019). Housing, Land and Property Disputes in South Sudan. South Sudan Law Society. March 2019. https://docs.southsudanngoforum.org/sites/default/files/2020-11/SSLS_HLP-report_final-003.pdf (Accessed 27 August 2022). Pg. 12.
Property Markets
The World Bank Doing Business 2020 highlighted structural and procedural limitations in the South Sudanese property market. Lengthy approval processes and official charges increase building costs, which are eventually passed on to consumers. Private developments must remit 8.5% of their project costs to acquire building permits within 131 days.[1] To register the property, investors must pay an additional 14.6% of the property value and wait 48 days. Burdensome procedures discourage investment. One of the main requirements is that investors verify land ownership through a survey engineer in the Ministry of Housing, Physical Planning, and Environment. While this is free, it takes at least one week to complete.[2] These kinds of barriers explain why South Sudan is ranked among the world’s six most challenging countries in which to do business.[3]
Land-related disputes are common. Over the past three years, about 20% of households have had land disputes, including expropriation and land grabbing accusations. Over 80% of these disputes have involved IDPs and returnees.[4] The lack of proper land leasing and allocation laws inhibits the development of long-term housing solutions. Poor execution of the land policy and national urban development strategy has seen many South Sudanese develop their residential properties without state oversight or building permits. IDPs and returnees who take over unregistered land urgently need dwellings that are hard to acquire with the ambiguous land tenure system. They tend to construct houses using their own building plans without the prerequisite government approval.[5] However, there is a formal process for obtaining building permits: first, individuals must develop relevant building plans with an accredited engineer and submit them to the Town Planning Unit under the state Ministry of Physical Infrastructure;[6] second, the application is forwarded to the Town Planning Department to verify land ownership; finally, the applicant is directed to the Revenue Authority to remit processing fees that vary depending on the type and size of the intended building. If the application is successful, the Town Planning Unit provides a certificate approving construction.[7]
Another challenge is that this process is not well publicised. Many inhabitants are unaware of the importance of processing permits before building. Further, the ministry has inadequate structures and labour to consistently inspect the construction process after issuing permits to ensure complete adherence to relevant regulations. Residents have little incentive to obtain permits, as having one does not carry significant advantages. Despite the limited execution of the law, there have been instances when individuals have been accosted and punished with hefty fines by government officials.
[1] World Bank (2020). Doing Business 2020. Economy Profile South Sudan. https://www.doingbusiness.org/content/dam/doingBusiness/country/s/south-sudan/SSD.pdf (Accessed 29 August 2022). Pg. 10.
[2]Ibid.). Pg. 24.
[3] World Bank (2020). Doing Business 2020. Comparing Business Regulation in 190 Economies. https://openknowledge.worldbank.org/handle/10986/32436 (Accessed 29 August 2022). Pg. 4.
[4] Deng, D. (2019). Housing, Land and Property Disputes in South Sudan. https://docs.southsudanngoforum.org/sites/default/files/2020-11/SSLS_HLP-report_final-003.pdf (Accessed 27 August 2022). Pg. 2.
[5] World Bank. (2014). Land Governance in South Sudan: Policies for Peace and Development. https://openknowledge.worldbank.org/bitstream/handle/10986/20767/869580WP0P14370nance0in0South0Sudan.pdf?sequence=1&isAllowed=y (Accessed 25 August 2022). Pg. 31.
[6] Ibid.Pg. 32.
[7]ibid.). Pg. 32.
Policy and Legislation
In 2013, South Sudan enacted a land policy designed to streamline institutions and regulations in land governance.[1],[2] One of the main tenets was for the ministry in charge of land to develop and maintain a digitised land tenure system that would coordinate operations across the board, including valuation, physical planning, survey, and registration.[3],[4] However, there is no evidence that such an Information Management System exists. The process of legalising unregistered land to enable people to construct their homes is plagued by ambiguity, corruption, and disputes.
The Land Act of 2009 acknowledges three types of land: public, private, and community. Public land is held by the government on citizens’ behalf, private land is registered chiefly by individuals in urban areas, whereas community land belongs to various groups under customary laws.[5] The main area of contention relates to distinguishing between public and community land. Communities have occupied all land in the country. Applying the broad definition of community land implies that practically all land in South Sudan is community-owned, besides privately held plots and sections gazetted by the government. Such ambiguities hamper land purchase and development. The Land Act allowed the government to allocate community land for development and investment purposes.[6] However, poor implementation of the law often sees people violently evicted from their premises to clear land for investment. This fuels disputes, and communities have sometimes reacted violently to stop demolition activities. Private sector projects are delayed as costs and losses soar.
To further women’s rights, the Transitional Constitution and the Land Act of 2009 formally promoted women’s housing, land, and property rights. These include assuming ownership of properties by deceased husbands alongside other legal heirs.[7] Article 28 of the constitution further affirms that every citizen has an equal right to own property as stipulated by the law.[8] However, women still face unsurmountable hurdles in property ownership due to a patriarchal cultural system that has rigid land ownership and inheritance structures.[9] Customary law is routinely applied to determine lawsuits when judges raise concerns about success, marriage, inheritance, and family relationships.[10]
Women find it difficult to own or develop properties. Even when they receive favourable rulings in courts, enforcing property rights is challenging. Also, the justice system has limited manpower to enforce court rulings and challenge land owners attributed to heavily armed military officers. The United Nations routinely implements Land Policy Workshops to empower women and increase their capacity to challenge discrimination and pursue their land, housing, and property rights.[11] Still, the impact is slow, given the systemic patriarchy.
[1] Land Links. (2013). Council of Ministers Passes South Sudan Land Policy. https://www.land-links.org/2013/02/council-of-ministers-passes-south-sudan-land-policy/ (Accessed 25 August 2022).
[2] Intergovernmental Authority on Development. (2011). Southern Sudan Land Commission
[3] World Bank. (2014). Land Governance in South Sudan: Policies for Peace and Development. https://openknowledge.worldbank.org/bitstream/handle/10986/20767/869580WP0P14370nance0in0South0Sudan.pdf?sequence=1&isAllowed=y (Accessed 25 August 2022). Pg. 16.
[4] Government of Southern Sudan. Draft Land Policy. https://land.igad.int/index.php/documents-1/countries/south-sudan/rural-development-5/1074-southern-sudan-land-commission-2011-draf-land-policy/file (Accessed 25 August 2022). Pg. 21.
[5] Deng, D. (2016). Between a Rock and a Hard Place: Land Rights and Displacement in Juba, South Sudan. https://land.igad.int/index.php/documents-1/countries/south-sudan/gender-5/979-between-a-rock-and-a-hard-place-land-rights-and-displacement-in-juba-south-sudan-2016/file (Accessed 28 August 2022). Pg. 7.
[6] World Bank. (2014). Land Governance in South Sudan: Policies for Peace and Development. https://openknowledge.worldbank.org/bitstream/handle/10986/20767/869580WP0P14370nance0in0South0Sudan.pdf?sequence=1&isAllowed=y (Accessed 25 August 2022). Pg. 18.
[7] Intergovernmental Authority on Development. (2022). South Sudan: Land Governance Country Profile. https://land.igad.int/index.php/countries/40-countries/south-sudan (Accessed 28 August 2022).
[8] Ibid.
[9] Japan International Cooperation Agency. (2017). Country Gender Profile Republic of South Sudan Final Report. https://land.igad.int/index.php/documents-1/countries/south-sudan/gender-5/981-country-gender-profile-republic-of-south-sudan-2017/file (Accessed 28 August 2022). Pg. 1.
[10] Deng, D. (2016). Between a Rock and a Hard Place: Land Rights and Displacement in Juba, South Sudan. https://land.igad.int/index.php/documents-1/countries/south-sudan/gender-5/979-between-a-rock-and-a-hard-place-land-rights-and-displacement-in-juba-south-sudan-2016/file (Accessed 28 August 2022). Pg. 7.
[11] United Nations. (2020). South Sudan: Supporting the protection and implementation of women’s housing, land and property. https://blogs.un.org/blog/2020/10/30/south-sudan-supporting-the-protection-and-implementation-of-womens-housing-land-and-property/
Opportunities
South Sudan should align its legislation and fully implement the Land Act. More effective laws will safeguard landholding communities and prevent disputes when their properties are alienated for investment without their permission.
Because agriculture is the largest employer, supporting livelihoods for four out of five families,[1] South Sudan’s investments in arable land are key while building resilience against devastating climate events like floods and drought.
There are significant opportunities for alternative energy sources, given the very low levels of electrification in the country.
Gender mainstreaming is another requisite opportunity. Women constitute 49% of the entire labour force[2] but remain largely marginalised in education, housing, land and property (HLP) rights.[3] Women acquire land rights through marriage and other male relatives but hardly enjoy these rights given the customary patriarchal system. Ambiguous laws and poor execution deny women the opportunity to contribute positively to economic growth. Digitalising the land tenure system could help women define and fight for their HLP rights. Transparency, commitment, and accountability in land management are crucial to spurring sustainable economic development.
[1] World Bank. (2022). World Bank Report: With Peace and Accountability, Oil and Agriculture Can Support Early Recovery in South Sudan. https://www.worldbank.org/en/news/press-release/2022/06/15/world-bank-report-with-peace-and-accountability-oil-and-agriculture-can-support-early-recovery-in-south-sudan (Accessed 25 August 2022).
[2] World Bank. (2022). Labor force, female (% of total labor force) – South Sudan. https://data.worldbank.org/indicator/SL.TLF.TOTL.FE.ZS?locations=SS (Accessed 25 August 2022).
[3] Deng, D. (2016). Between a Rock and a Hard Place: Land Rights and Displacement in Juba, South Sudan. https://land.igad.int/index.php/documents-1/countries/south-sudan/gender-5/979-between-a-rock-and-a-hard-place-land-rights-and-displacement-in-juba-south-sudan-2016/file (Accessed 28 August 2022). Pg. 7.
Green Applications for Affordable Housing
A significant information gap is evident in most South Sudanese institutions. The Bank of South Sudan and MoFEP provide financial data, but most information is intermittent and outdated. The National Bureau of Statistics has published financial, survey, and census data, but most links are broken. Getting verifiable information directly from government ministries and institutions was difficult. Other sites like The World Bank, Land Links, and the Intergovernmental Authority on Development have independently published extensive data to bridge the information gap.
Availability of Data on Housing Finance
South Sudan lacks green building standards. The World Bank spearheaded green applications by establishing an office building in 2014. The 470m2 structure overcame the challenges related to poor electricity supply, expensive building materials, and inadequately skilled labour, to become the first green building in Central Africa and win first place in the LEED Earth Campaign run by the US Green Building Council.[1] However, there is no evidence of a Green Building Council in the country currently.
70% of the urban population have access to safe drinking water, while basic sanitation facilities are only accessible to 42% of the urban population.[2],[3] Only 7.2% of South Sudanese have access to electricity which is generated from non-renewable sources like coal, oil, and gas.[4] Limited access to water, electricity, and sanitation services corresponds with a lack of green housing alternatives.
[1] Crea, J. (2014). The little LEED building that could: South Sudan’s first LEED-certified building. https://www.usgbc.org/articles/little-leed-building-could-south-sudan-s-first-leed-certified-building (Accessed 29 August 2022).
[2] World Bank. (2020). Data. People using at least basic drinking water services, rural (% of rural population) – South Sudan. https://data.worldbank.org/indicator/SH.H2O.BASW.RU.ZS?locations=SS (Accessed 27 August 2022)
[3] World Bank. (2020). Data. People using at least basic sanitation services, urban (% of urban population) – South Sudan. https://data.worldbank.org/indicator/SH.STA.BASS.UR.ZS?locations=SS (Accessed 27 August 2022).
[4] World Bank. (2015). Electricity production from oil, gas and coal sources (% of total) – South Sudan. https://data.worldbank.org/indicator/EG.ELC.FOSL.ZS?locations=SS (Accessed 27 August 2022).
Websites
Bank of South Sudan https://bankofsouthsudan.org/
Ministry of Finance, Planning and Economic Development http://grss-mof.org/
National Bureau of Statistics https://www.ssnbss.org/
Numbeo www.numbeo.com
Knoema www.knoema.com
UN-Habitat www.unhabitat.org
World Bank www.worldbank.org
Intergovernmental Authority on Development https://southsudan.igad.int/
Land Links https://www.land-links.org/country-profile/south-sudan/
