By Kitab Unango, SSMJ Juba, Friday (October 18, 2024) - South Sudan is about to implement its first-ever investment policy, a ground-breaking effort to close long-standing legal gaps that have hampered economic growth since the country's independence. The policy, which has entered its final stage, is expected to create a legal framework that will attract investors by providing clearer protections and a more conducive environment for business. Since gaining independence , South Sudan has struggle
By Kitab Unango, SSMJ
Juba, Friday (October 18, 2024) - South Sudan is about to implement its first-ever investment policy, a ground-breaking effort to close long-standing legal gaps that have hampered economic growth since the country's independence.
The policy, which has entered its final stage, is expected to create a legal framework that will attract investors by providing clearer protections and a more conducive environment for business.
Since gaining independence , South Sudan has struggled with political instability and ongoing civil conflict, making it difficult to establish a stable investment climate.
The absence of a robust legal framework has further deterred potential investors, leaving the country reliant on its oil sector, which accounts for nearly all of its revenue.
Despite South Sudan's rich resources in agriculture, mining, and tourism, these sectors have remained largely untapped due to the lack of a clear investment structure.
The new investment policy aims to tackle these specific challenges. Legislators and various government representatives validated the policy on Tuesday, preparing it for submission to the national legislative assembly for approval.
Once passed, it will be signed into law by President Salva Kiir, marking a historic step toward creating a stable and attractive investment environment.
"This is the first investment policy of its kind that South Sudan is trying to legislate to help boost its economy," Dr. Dhieu Mathok Diing, minister of Investment, stated. "If passed and implemented, we will see many changes in the lives of the citizens of South Sudan."
The investment policy was developed in collaboration with the consultancy firm Otium and shaped by extensive consultations with stakeholders across different sectors to ensure that the policy addresses the specific legal, infrastructural, and security issues that have deterred investors in the past.
One of the key legal gaps the policy seeks to close is the lack of legal protections for foreign and domestic investors, outlining provisions that will safeguard investments, thereby fostering greater investor confidence.
Moreover, the policy establishes the 'South Sudan Investment Council', a governing body under the president's direction, to supervise the execution of the investment strategy.
This council will assist in tracking progress and guaranteeing the achievement of the policy's goals, thereby tackling another significant issue—the inadequate execution of reforms.
The policy also targets South Sudan’s over-reliance on its oil sector, which has made the country vulnerable to global market fluctuations.
According to Dr. Mathok, the focus will be on promoting investment in other sectors, such as agriculture, mining, and tourism, which have remained underdeveloped despite their potential.
"Our economy is deteriorating because other sectors are not developed, and we are just depending on the oil sector," Dr. Mathok explained.
"This policy will create a window for these sectors to grow, providing new revenue streams for the government."
A central goal of the policy is to strengthen the South Sudanese Pound by boosting local production, encouraging exports, and reducing the country’s dependence on crude oil.
By improving the business environment and addressing key legal barriers, the policy aims to attract foreign direct investment (FDI) into these underdeveloped sectors.
This diversification is expected to create jobs, increase exports, and generate hard currency for the country.
Furthermore, the policy aims to tackle infrastructure challenges and insecurity, the two critical issues that have long deterred investors, by including measures to improve infrastructure and enhance security.
Dr. Mathok pointed out that the government hopes to create a more stable and business-friendly environment that addresses the "infrastructure, which is lacking" and the "issue of insecurity," which have been significant obstacles to investment.
As South Sudan approaches the enactment of the policy, the government maintains its optimism that it will create new investment opportunities and foster economic growth.
"The document formulation is in its final stages," Mathok said, noting that it would soon be discussed in the economic cluster, followed by deliberations in the council of ministers before being passed by the national legislative assembly.
This week's validation workshop comes after a consultative meeting last month that gathered stakeholders from all over the nation to offer their feedback on the draft policy.
These consultations have been essential in ensuring that the final document is comprehensive and reflects the needs of all parties involved.
Once enacted, the investment policy will be a cornerstone of South Sudan’s economic strategy, serving as a roadmap for diversifying the economy and creating a more attractive and secure environment for investors.
By closing the legal gaps that have hindered growth and addressing key structural challenges, the policy aims to position South Sudan as a viable investment destination and chart a path toward long-term stability and prosperity.