S. Sudan declares 2021 a “year of investment”, woos investors
Dec 15, 2020 (Thessherald)–As the country continues to grapple with its faltering economy and increasing illiteracy rates, the Minister of Investment, Dr. Dhieu Mathok has announced that 2021 will be a year devoted to investment.
“2021 is the year for investments in South Sudan,” the Minister of Investment Dr. Dhieu Mathok has declared.
According to the World Bank, 98% of the government’s revenues currently comes from oil production, making it one of the oil-dependent countries in Africa.
Key factors that discourage foreign investments in South Sudan.
1: Insecurity across the country
Since the outbreak of violence in 2013, South Sudan has been a hotbed of widespread insecurity, and it is believed to be one of the main factors discouraging foreign companies from investing in the world’s youngest nation.
The biggest elephant in the room is “corruption” and financial mismanagement. As a matter of fact, investors are not interested in putting their resources into an environment where their money would eventually end up being used in a dishonest manner.
3: Briberies and lack of transparency
In addition to corruption, bribery is another key element that makes it difficult for direct foreign investment to thrive.
According to Corruption Perception Index released in 2018, “South Sudan is perceived as one of the most corrupt countries in the world due to its constant social and economic crises, ranking an average score of 13 out of 100 countries.”
4: Absence of a regulatory body to supervise financial institutions
Economists and experts believe that, for FDI to be more effective in South Sudan, there must be an independent oversight body responsible for overseeing, regulating, and promoting monetary policies.
In October, the country appointed a Tanzanian national, Dr. Patrick Mugoya as Commissioner-General of the South Sudan National Revenue Authority – a body responsible for overseeing the country’s oil and non-oil revenues.