Investment opportunities in South Sudan

South Sudan, the world’s youngest country, presents a unique landscape for investors looking to unlock their potential. The country boasts abundant natural resources, fertile agricultural land, and a young population eager to participate in economic activity.

The Government of South Sudan is primarily concerned with maintaining peace and promoting nation-building on the path to economic recovery. South Sudan's National Development Strategy prioritizes agricultural development and construction. Infrastructure reconstruction is a priority. Investments in higher-value industries have low returns and this sector is best suited to those with extensive experience in the local context.

Sectors for Investment

Agriculture and Agribusiness

South Sudan's fertile land and favorable climate make it ideal for agricultural investment. Agriculture provides employment for a large part of the population and contributes significantly to the country's GDP. Investment opportunities exist in crop production, livestock farming, and agro-processing. Investors can use technology and sustainable practices to overcome these challenges and capitalize on the untapped potential of South Sudan’s agricultural sector.

Infrastructure Development

Infrastructure development is a critical priority for economic growth and development in South Sudan. The country faces significant shortages of roads, bridges, ports, and utilities, which reduce productivity and hinder trade.

However, the government has ambitious plans to improve infrastructure through public-private partnerships (PPPs) and foreign investment. Investors can explore opportunities in infrastructure projects such as road construction, renewable energy initiatives, and water supply systems.

Despite the complexities associated with the regulatory framework and bureaucratic processes, investing in infrastructure in South Sudan brings long-term benefits and contributes to the country's socio-economic development.

Oil and Natural Resources

South Sudan is blessed with abundant oil reserves and untapped mineral wealth, presenting lucrative opportunities for investors in the energy and mining sectors. The oil industry is the main contributor to the country's economy, providing a significant portion of government revenue. There is potential not only in the oil sector, but also in iron, diamonds, copper, nickel, marble, and gold mining. The country is rich in mineral resources.

Tourism Sector

The tourism industry in South Sudan has great potential given its rich cultural heritage, diverse wildlife and picturesque landscapes. Investors have opportunities to participate in tourism development initiatives such as eco-lodges, safari tours and cultural heritage projects.

Juba is a fast-growing city in South Sudan that could become an attractive destination for tourism. In addition to the oil revenues that the government is using to develop the city, investors from many countries are building a large number of infrastructure projects. Many entertainment venues have already been built, turning the once sleepy Juba into one of the liveliest cities on the African continent at night.

One of the main attractions that no visitor to Juba should miss is the White Nile, one of the tributaries of the Nile River, the longest river in the world, which flows through Egypt before emptying into the Mediterranean Sea.

A visit to a traditional cattle market is a must for any tourist. The South Sudanese are very proud of their unique culture and customs.

The country is also attractive to nature lovers. South Sudan boasts four national parks and fourteen game reserves, which are home to some of Africa's most impressive and very important wildlife. These are Bandinglio, Boma, Southern and Nimule National Parks. Of the four, Bandinglio National Park is the most important and significant, hosting the second largest animal migration in the world.

Located in the equatorial and eastern regions of South Sudan, Bandinglio National Park was established in 1992. It is crossed by the White Nile and covers an area of over 10,000 square kilometers. It is home to a variety of animals including giraffes, lions, buffalos, cheetahs, leopards, gazelles, tigers and elephants among many others.

Juba International Airport is currently one of the busiest airports in Africa. The airport receives international flights from Cairo, Addis Ababa, Nairobi, Entebbe, Khartoum and Dubai. Juba is also connected by road to Sudan, Uganda, Ethiopia and Kenya. A number of travel and car rental companies are already doing business in the city for visitors.

With proper planning and investment, tourism can be a major driver of economic growth and employment in the country.

Foreign Direct Investment Policy

The Ministry of Investment has established departments for administration and finance, research and planning, investment promotion, maintenance and investment coordination at the state level.

The Ministry of Investment has a one-stop investment center. The ministries that handle company registration include the Ministry of Trade and Industry, the Ministry of Investment, the Ministry of Finance and Planning and the Ministry of Justice. There is no one-stop shop for the registration process and an investor must visit all the above-mentioned agencies to complete the company registration. Since registering a business in South Sudan is a process that involves several national, state and local entities, it is advisable to hire a local lawyer to register the business.

South Sudan is a member of the African Trade and Insurance Agency, which provides export insurance and other assistance to foreign investors and traders. The South Sudan Chamber of Commerce is run by the state, with a director employed by the state and chairmen of private enterprises whose business interests are tied to government contracts.

Investment Laws

Under the 2009 South Sudan Land Act (which predates independence but has not been amended and therefore still applies), non-citizens can lease, but not own, land in South Sudan. According to the schedule of tax incentives and concessions in the Investment Promotion Act 2009, foreign investors can lease agricultural land for 30-60 years with the possibility of renewal, while mining leases must not exceed the life of the mine or quarry.

The South Sudan Companies Act 2012 allows non-South Sudanese to invest in medium and large companies, provided that a South Sudanese citizen holds at least 31% of the shares. Government officials will not issue a business license to a foreign investor without a local shareholder. Foreign companies that want to set up a subsidiary in South Sudan are not subject to the local shareholder requirement. Private security companies operating in South Sudan must have a South Sudanese citizen holding 51% of the shares in the company, according to the Private Security Companies Rules and Regulations 2013. Mining companies must have a South Sudanese national as a co-owner, but the exact percentage of ownership required is unclear.

Under the 2009 Investment Law, foreign investors must apply for an investment certificate from the Ministry of Investment to ensure that the project will benefit South Sudan's society and economy. The government does not make public statements about how it screens applications. Investors must rely on the wording of the law. The Ministry of Investment began issuing a new type of investment certificate in February 2022, citing abuses and counterfeits of the older versions.

The Third Schedule of the Investment Act 2009 states that South Sudanese citizens will enjoy preferential treatment if they invest in micro-enterprises, postal services, car and taxi rentals, public relations, retail, security services and cooperative services.

When setting up a business in South Sudan, it is necessary to obtain a Tax Identification Number (TIN). The TIN will be provided at the time of registration/incorporation of the company name. A significant milestone in the tax policy of the Republic of South Sudan was the enactment of the Taxation Act 2009, which provided a sound tax policy framework; a sound basis for tax administration and a modern, easily administered tax law.

Investment Incentives

The Investment Promotion Act 2009 provides for tax incentives of 20 to 100% of the cost of qualifying research and capital expenditure, deductible annual incentives of 20 to 40% of the cost of certain equipment, and depreciation incentives of 8 to 10% on certain assets. A foreign tax credit is available to any resident company that pays foreign taxes on business income outside South Sudan. In practice, the exact structure of the incentives is unclear due to patchy enforcement.

The Ministry of Finance and Planning has the legal authority to approve tax incentives.

The government previously used future oil supplies to attract financing and secure foreign direct investment projects, but in 2021 the Council of Ministers agreed to end this practice as part of reforms agreed with the International Monetary Fund (IMF) and the World Bank.

The provision of incentives to investors in South Sudan is regulated by the South Sudan tax system (under the Taxation Act 2009) and investor incentives (under the Investment Promotion Act 2009).

The Government of the Republic of South Sudan has identified the following sectors as priority sectors for investment, and investors in these sectors are eligible for incentives and incentives:

• Agriculture and Agribusiness
• Physical Infrastructure
• Social Infrastructure
• Mining, Quarrying, Power and Electricity, Oil and Gas
• Exploration of Natural Resources for Economic Use
• Forestry
• Medium and Heavy Manufacturing
• Transportation, Telecommunications, Print and electronic media, ICT
• Commercial banking, insurance, property management and financial institutions
• Pharmaceutical, chemical, medical and surgical industries
• Tourism and hotel development

Investors in the above sectors enjoy the following incentives:

• Duty exemption: import of agricultural tools, equipment, machinery and tractors, pharmaceuticals, animal feed, seeds — to stimulate the production of food and commercial crops are exempt from all duties and taxes for a period determined by law.
• Tax Exemptions: These include tax deductions ranging from 20% to 100%, deductible annual deductions ranging from 20% to 40%, and other depreciation deductions ranging from 8% to 20%.
• Special Incentive: The Board of Directors of the South Sudan Investment Authority may grant special incentives for investments in strategic or transformational sectors. These special incentives are only available upon special applications from investments in areas designated as strategic or transformational.

Tax exemptions and duty exemptions are requested by submitting an application to the Ministry of Finance and Planning, which is received and administered by the South Sudan Investment Authority — a government-mandated agency to regulate and promote investment opportunities in South Sudan, the region and the world.