Research and consulting in South Sudan

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Research and consulting in South Sudan

Country overview:

IOA has been actively involved in South Sudan’s growth since its inception, conducting research and providing consulting services to analyse current trends shaped by key developments. IOA analysts have documented how the nation, once on the brink of failure, has been plagued by political ambitions that have fueled ongoing civil conflict. South Sudan exemplifies the “resource curse”, where vast natural wealth benefits few while endangering the lives of many. The country also faces Africa’s worst refugee crisis, with millions displaced due to instability and violence.

South Sudan’s economy is almost entirely dependent on oil, while the majority of its population relies on subsistence farming and herding to survive. Despite this, the nation has untapped potential in its agricultural land and other resources, which could thrive with proper investment and strategic planning. However, the region’s susceptibility to climate change has brought devastating challenges, including droughts, floods, and locust swarms, exacerbating the country’s struggles.

Key opportunities in South Sudan:

  • Agriculture holds significant potential to address food shortages and generate exportable goods
  • The country benefits from established trade connections with both African and international markets
  • Large-scale investments in education, healthcare, and infrastructure could unlock extensive opportunities once national stability is secured

Key concerns/risks in South Sudan:

  • South Sudan is grappling with the most severe humanitarian crisis in its history
  • Governance is flawed by armed conflict, corruption, and political instability
  • Recent flooding highlights the profound impact of climate change on the nation
South-Sudan

Tips on doing business in South Sudan:

Starting a business:

  • South Sudan’s business and property ownership policies align with those of the broader region. Foreign investors can establish and operate medium to large enterprises across all sectors. While direct property ownership is restricted for foreigners, they can secure 99-year land leases. Ownership of mines and quarries is allowed for the duration of their economic viability
    (Read more at: https://nra.gov.ss/investors/introduction/1/investment-in-south-sudan)

Doing business:

  • South Sudan’s history of conflict has severely hindered local development, resulting in one of the least developed infrastructures in the region. This poses challenges for import and export operations and often necessitates businesses to arrange their own utilities. Additionally, low local wages limit the size of the domestic consumer market
  • Corruption remains a significant issue, making it essential to conduct thorough due diligence on local partners, particularly those with political connections
  • Foreign investors can benefit from various incentives, including concessions on machinery and equipment in designated priority areas, capital allowances, accelerated depreciation, and access to government land for investment purposes

Culture and society:

  • In South Sudan, business culture emphasizes face-to-face interactions over formal written agreements
  • Cash and tangible goods are the preferred modes of transaction, as electronic payments remain uncommon
  • Foreign visitors are strongly advised to exercise caution and discretion when taking photographs. Local laws strictly regulate photography, with reports of foreign visitors being detained or assaulted by security forces for taking public photos. Additionally, inter-community conflicts are frequent, particularly in rural areas, necessitating heightened awareness and personal safety precautions for visitors

A sample IOA research report on South Sudan: