South Sudan

South Sudan is the youngest internationally recognized state in the world, having become a member of the UN in 2011. At the same time, the country has enormous potential for development and offers many business opportunities.

General information

Official name of the state — Republic of South Sudan. The state occupies an area of 644,329 km² (42nd in the world). The population is approximately 13,058,117 people (as of the beginning of 2024).

The main group of the population consists of representatives of the Nilotic peoples. The official language is English, and the unofficial language of international communication continues to be Arabic (Sudanese dialect). Most South Sudanese speak a variety of Adamawa-Ubangi, Nilotic, Nubian, Central Sudanese and other languages and dialects, the largest of which is Dinka.

Most of the population of South Sudan professes either Christianity or traditional African animist religions. There is also a small Islamic community.

The official currency of the country is the South Sudanese pound.

Juba — largest city and capital of the country. The city is a port on the White Nile River and the southern terminus of the Nile roads. Before the civil war, Juba was a transport hub, connected by highways to Kenya, Uganda and the Democratic Republic of Congo.

Administratively, the republic is divided into 10 states and three administrative territories. At the same time, the number of staff was reduced as a result of negotiations with the armed opposition in 2020.

History, geography, culture, mentality

The history of South Sudan before independence is closely connected with the history of the Republic of Sudan, from which it separated in 2011. It dates back to the Pharaonic period, when the Kingdom of Kerma was created (c. 2500 - 1500 BC), the subsequent reign of the New Egyptian Kingdom (c. 1500 BC - 1070 BC) and the rise of Kingdoms of Kush (c. 785 BC − 350 AD).

After the fall of Kush, the Nubians formed the three Christian kingdoms of Nobatia, Makuria and Alodia, the last two lasting until about 1500. Between the 14th and 15th centuries, most of Sudan was gradually settled by Arab nomads. From the 16th to the 19th centuries, central and eastern Sudan was dominated by the Funj Sultanate, while Darfur ruled the west and the Ottomans — east.

From the beginning of the 19th century, all of Sudan was conquered by the Egyptians under the dynasty of Muhammad Ali. It was under Egyptian rule that Sudan acquired its modern borders and began the process of political, agricultural and economic development.

In 1899, under British pressure, Egypt agreed to share sovereignty over Sudan with the United Kingdom as a condominium. In fact, Sudan was governed as a British possession.

The 20th century saw the rise of both Egyptian and Sudanese nationalism aimed at ending British occupation.

The fighting in South Sudan began almost immediately after the declaration of independence of the “big” one. Sudan. The antagonism was historically due in large part to the fact that the north of Sudan is inhabited predominantly by Muslims, and the south by Christians and followers of African local cults. Confessional differences were further aggravated by racial and cultural aspects. 

The central government in Khartoum (Sudan), in which Muslims occupied key positions, refused to fulfill promises to create a federal state, which led to a mutiny by southern officers and a civil war that lasted from 1955 to 1972.

The second civil war in Sudan lasted 20 years and ended in 2005

The sovereignty of South Sudan was officially declared on July 9, 2011.

South Sudan is a Member State of the United Nations, a Member State of the African Union and the Intergovernmental Authority on Development. In July 2012, South Sudan signed the Geneva Conventions. The country also applied to join the Commonwealth of Nations, given that it was part of the British Empire.

In the east, South Sudan neighbors Ethiopia. In the south, the young republic is bordered by the Democratic Republic of the Congo, Uganda and Kenya. The Central African Republic limits the western borders.

It has no access to the sea. Large areas of the country are occupied by swamps. The state's protected areas are the second largest in the world for the migration of wild animals.

Foreigners in the country should avoid any manifestations of disrespect for the religious and especially tribal affiliations of South Sudanese, criticism of elders and high-ranking officials. You cannot enter into polemics with representatives of law enforcement agencies and other security agencies. Photography and video filming of bridges, government and army buildings, as well as other protected objects is strictly prohibited.

Power

The head of the Republic of South Sudan and the head of the Government is the President. The President forms the Cabinet of Ministers, which is approved by the Legislative Assembly.

The national bicameral Parliament is elected every 4 years and consists of the Council of States and the National Legislative Assembly.

There are 10 states in South Sudan. Each has its own Constitution and governing bodies. There are 3 political parties in the state.

Economy

South Sudan's economy is almost entirely dependent on oil revenues. Newly released data on the Treasury Department's website suggests that annual oil revenues amount to about $1.6 billion at current exchange rates. The South Sudan oil and gas exploration and production market size is estimated at 103.76 thousand barrels per day in 2024 and is expected to reach 111.40 thousand barrels per day by 2029, with a CAGR of 1.43% in during the forecast period (2024-2029). 

Since independence, the Republic of South Sudan has created a unique opportunity to establish itself as Africa's new global oil producer. Moreover, 90% of gas and oil reserves are undeveloped, which is expected to attract foreign investors and create opportunities for the country's oil and gas exploration and production market in the future.

• In June 2021, the Ministry of Petroleum (MOP) of the Republic of South Sudan announced the start of the first oil licensing round in the history of South Sudan. The country's Ministry of Transport has identified new exploration blocks with potential hydrocarbon reserves and collected important data to provide to interested investors, operators and counterparties. 
• In January 2021, South Sudan and Sudan signed a Memorandum of Understanding (MoU) to cooperate and implement agreements related to increasing oil production and expanding oil operations. The deal aims to increase oil production to 300,000 barrels per day over the next three years (until the end of 2024), starting in 2021. The Ministry of Petroleum (MOP) also said it is seeking to increase production from its northern oil fields, which have been disrupted by more than six years of production.

After decades of civil war, South Sudan's industry and infrastructure are very poorly developed. The main problems of the economy are:

• poorly developed transport network;
• lack of electricity generated by diesel generators;
• lack of drinking water.

But the country has good potential for development. The waters of the White Nile, which flows through its territory, have a large hydropower resource. There are excellent conditions for the development of agriculture. The country preserves huge herds of wild animals, which could serve to attract ecotourists. The government also plans to build a new capital, Ramsel, and several other new cities and large-scale reconstruction of existing ones.

South Sudan is heavily dependent on imports. The World Bank plans to support this African country with investments and contribute to its economic growth. The government sets itself the task of reducing poverty and improving financial management.

Business climate

South Sudan has good growth prospects, supported by a prosperous world, rising literacy rates and increasing business opportunities. As the youngest country in the world, South Sudan is open to companies, organizations and businesses seeking a strategic opportunity to harness the potential of Africa's rapidly developing market.

Major opportunities exist in South Sudan's natural resources, including precious metals and gum arabic in addition to oil. South Sudan offers a rich cultural experience and a wealth of natural attractions that offer endless opportunities for the tourism industry.

Both fiscal and non-fiscal incentives are available in the country. The National Tax Administration implements tax incentives in cooperation with other regulators and intermediaries such as the Ministry of Investment.

Russian President Vladimir Putin received President Salva Kiir in the Kremlin at the end of 2023. At the meeting, the parties agreed to expand cooperation in the fields of energy and trade. The Russian President noted that the construction of oil refineries on the territory of the republic with the participation of Russian companies will contribute to strengthening ties. One of them, the Logistics Investment Group (LIG) Safinat, is already working there.

Investment climate

The Ministry of Investment has established a body to manage administration and finance, research and planning, investment promotion, maintenance and coordination of investments at the state level.

The government has identified priority sectors for investment, such as agriculture, transport infrastructure, oil, mining and energy, but has not yet developed effective incentives to attract investors.

South Sudan is a member of the African Trade and Insurance Agency, which provides export insurance and other assistance to foreign investors and traders.

Under the South Sudan Land Act 2009 (which pre-independence), non-citizens can rent rather than own land in South Sudan. According to the schedule of tax incentives and incentives of the Investment Promotion Law of 2009, foreign investors can lease agricultural land for 30-60 years, with the possibility of extension, and the lease period of mining enterprises should not exceed the life of the mine or quarry.

The South Sudan Companies Act 2012 allows foreigners to invest in medium and large companies, provided that a South Sudanese citizen owns at least 31% of the shares. Government officials will not issue a business license to a foreign investor without a local shareholder. Foreign companies wishing to open a subsidiary in South Sudan are not subject to local shareholder requirements. Private security companies operating in the country must have a South Sudanese national owning 51% of the company's shares, in accordance with the Private Security Companies Rules and Regulations 2013. Extractive sector companies are required to have a South Sudanese citizen as a co-owner, but the exact percentage of ownership is unclear.

According to the Investment Law 2009, foreign investors must apply for an investment certificate from the Ministry of Investment to ensure that the project will benefit the society and economy of South Sudan.

Most of the rules on foreign direct investment can be found in the Land Act 2009, Investment Promotion Act 2009 and the Companies Act 2012.

Business and investment support structures

South Sudan, as a developing country, provides certain support structures for business and investment, but due to various factors such as political instability, insufficient infrastructure and social problems, these structures may be limited and require improvement.

Here are some key aspects of supporting business and investment in South Sudan:

• Legal Framework. South Sudan is developing and improving laws and regulations governing business and investment. This includes legislation on company formation, taxation, land rights and other aspects affecting business.
• Investment zones and tax exemptions. Country authorities can create investment zones with incentives for investors, such as tax exemptions for a certain period of time, as well as providing other benefits.
• Support for small and medium-sized enterprises (SMEs). Government and international organizations can provide financial and advisory support for the development of small and medium-sized enterprises that play an important role in the country's economy.
• Partnerships with international investors and organizations. South Sudan can attract investment and expertise from international investors and organizations such as the World Bank or the International Monetary Fund to support various sectors of the economy.
• Infrastructure development. Improving infrastructure such as roads, energy and telecommunications can make South Sudan more attractive to investors, improving the business environment.

It is important to note, however, that in light of the country's political and economic instability, as well as social issues such as conflict and lack of education and healthcare, investors may face risks that need to be taken into account when deciding to invest in South Sudan.