Investing in South Sudan

Investment in South Sudan takes place in a fragile, oil-dependent and import-dependent economy with a large cash-based and informal component. Oil accounts for more than 80% of gross domestic product, about 95% of exports and roughly 70% to 80% of government revenue. Inflation, currency depreciation, shortages, security conditions and dependence on the Sudan export corridor can affect both operating income and the ability to convert or transfer capital. The established investment options include bank deposits and term deposits at banks licensed by the Bank of South Sudan, government Treasury bills and bonds, private company ownership, land-based projects, agriculture, livestock, fisheries, forestry, agro-processing, mining, quarrying, petroleum, gas, energy, manufacturing, transport, telecommunications, information and communications technology, tourism, hotels, financial institutions and public-private partnerships. Public-private partnerships combine public and private participation in a project and may cover infrastructure or social infrastructure. The Ministry of Agriculture has listed projects such as agro-industrial complexes, oil mills, sugar, rice, oil crops, coffee, tea, horticulture and agro-mechanical centres. The listed project sizes were approximately USD 18.124 million to USD 160 million in a 2023 list, so current availability and terms require confirmation. South Sudan has no verified local securities exchange or established retail market for listed shares, exchange-traded funds, mutual funds, real estate investment trusts or local pension products. Mobile money supports payments and cash access but is not a securities custody or investment product. Treasury bills and bonds have a legal basis because the Bank of South Sudan is authorised to issue and administer government securities, but auction calendars, investor eligibility, pricing and settlement information are not consistently published. Private share transfers and contractual exits therefore replace a standardised secondary market in many cases, creating substantial liquidity and exit risk. A foreign investor generally needs an investment certificate before starting the investment. A national investor registers with the investment authority, while a certificate may be needed to obtain investment benefits. The Ministry of Investment, the Ministry of Justice and Constitutional Affairs, the Bank of South Sudan, the South Sudan Revenue Authority, sector ministries, state and county land authorities and Traditional Authorities can each have a role. Company incorporation under the Companies Act 2012, validation of the business, directors' tax identification numbers, a business tax identification number, sector licences, beneficial-owner and customer checks, anti-money-laundering controls, insurance and tax registration may be required. A foreign individual using the electronic tax system generally needs a passport, alien registration and a work permit. Investment certificates do not replace sector approvals. A project may also require environmental and social permits, a tax clearance, land documentation, community consultation, a concession or licence, and a dispute or arbitration clause. Oil and mining projects require especially careful checks of the licence, concession, environmental impact assessment, disclosure, payment records and beneficial ownership. Priority sectors under the Investment Promotion Act include agriculture and value addition, infrastructure, mining, quarrying, energy, petroleum, gas, forestry, manufacturing, transport, telecommunications, information and communications technology, banking, insurance, property management, pharmaceuticals, chemicals and tourism. A priority-sector label does not establish that a specific project is sound or legally available. Foreign entities cannot acquire freehold land in South Sudan. A leasehold or another time-limited interest may be available for a specified period, but customary land allocation, registration and community processes can involve Traditional Authorities as well as state or county authorities. Commercial agriculture, forestry, ranching, poultry or farming projects exceeding 250 feddans require the relevant approval. Under the Investment Act, a foreign agricultural lease may run for up to 30 years with renewal by mutual consent, while plantation forestry may run for up to 60 years. Quarrying and mining depend on the life of the mine or the relevant concession or licence. Overlapping claims, incomplete titles and disputes over customary rights create high tenure risk. Registered investors are entitled to non-discrimination based on origin and generally receive the same licensing, record-keeping, insurance and taxation duties as other investors, subject to sector laws. Expropriation or nationalisation is limited by formal requirements such as public purpose, non-discrimination, due process and fair and adequate compensation. Capital, loan payments and sale or liquidation proceeds may be transferred through an authorised dealer bank in freely convertible currency after taxes and statutory duties. Formal transfer rights do not guarantee practical convertibility when foreign exchange is scarce. Disputes may involve South Sudanese courts or agreed arbitration, including possible International Centre for Settlement of Investment Disputes procedures. Labour rules include equal pay and preference for qualified local workers in non-managerial roles where applicable. Costs include the investment application, certificate, company and business registration, bank and foreign-exchange services, sector licences, land, legal review, environmental assessment, insurance, tax, security and logistics. A financial-year 2023/24 fee schedule listed a foreign application fee of USD 100 and a foreign certificate fee of USD 2,000. It listed national application and certificate fees of SSP 15,000 and SSP 135,000, respectively, with separate transfer, amendment and review fees. The current fee table and processing times were not independently confirmed, so the responsible authority should confirm them before funds are committed. A sound assessment should compare expected income, capital growth, holding period, liquidity, currency exposure, financing, operating costs and the available exit. Local diversification through securities is structurally limited by shallow financial markets, limited equity and bond-market infrastructure and concentration in oil and Sudan export corridors. Direct business, project and real-asset investments can offer more economic exposure but require deeper legal, land, operational and security checks. Informal cash, cattle or community arrangements may function locally but usually lack standardised custody, documented ownership and predictable exit protection. Major risks include armed conflict, subnational violence, kidnapping, disruption from the Sudan conflict, pipeline or export interruptions, exchange-rate depreciation, parallel-market premiums, inflation, bank liquidity shortages, cash-withdrawal limits, corruption, opaque procurement, informal levies and checkpoints. Weak infrastructure, limited electricity, flooding, import dependence, weak court enforcement, land disputes, sanctions exposure, money-laundering concerns, reputational risk and sovereign or settlement risk can add to the loss potential. A bank deposit, government security, private company, land lease and informal arrangement should therefore not be treated as interchangeable investments.