WARRING factions have agreed on the installation of a federal system of government in South Sudan, mediators announced today.

The structure and functions of a transitional government of national unity have been “mostly agreed on,” said the regional body known as Igad, which is brokering ongoing talks in neighbouring Ethiopia.

Mediators said, however, that although both sides agreed “in principle” to set up a federal system, they have not agreed on when to introduce that government.

Representatives of the rebels want immediate implementation, but the government favours a 30-month transitional period before the new administration can be formed.

The recently independent country was plunged into violence last December after the government of President Salva Kiir accused ousted vice-president Riek Machar of launching a failed coup.

Thousands of people have since been killed in violence pitting government forces against renegade troops across the country.

More than 1.3 million people have been internally displaced.