Investing in South Sudan

South Sudan offers investment opportunities primarily in the oil and gas sector, agriculture, and infrastructure development. However, investors face significant challenges including security concerns, infrastructure gaps, and regulatory uncertainty.

Investment Climate

South Sudan is rich in natural resources, particularly oil, which accounts for the vast majority of government revenue and exports. Other sectors with potential include:

• Oil and Gas: Dominant sector, 30% CIT rate
• Agriculture: Vast arable land, mostly undeveloped
• Infrastructure: Roads, power, water - significant need
• Telecommunications: Growing mobile and data market
• Construction: Demand for housing and commercial property

Tax Considerations for Investors

• CIT: 25% standard, 30% for oil/petroleum
• Simplified Tax: 3% turnover tax for small businesses
• VAT: 18% standard rate
• WHT: Dividends 10%, Interest 10%, Royalties 15%
• Treaty Protection: Very limited tax treaty network

Foreign Investment Regulations

Foreign investors should be aware of:

• Foreign investment approval requirements for certain sectors
• Local content requirements in the oil sector
• Exchange control regulations (USD is widely used alongside SSP)
• Land ownership restrictions for foreign entities

Practical Challenges

• Security situation requires careful assessment
• Limited banking infrastructure
• Currency volatility (SSP depreciates frequently)
• Corruption and bureaucratic hurdles
• Limited skilled labor force

Risk Mitigation

• Work with experienced local partners
• Obtain political risk insurance where possible
• Structure investments through stable jurisdictions
• Engage professional legal and tax advisors