S. Sudan declares 2021 a “year of investment”, woos investors

South Sudan declares 2021 as a year of investment |Photo: Via Facebook

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.

2: Corruption

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.

Central Bank to inject liquidity into market to stabilize the economy

President Salva Kiir Mayardit meets the Council of Ministers in Juba on Wednesday, October 14, 2020 |Photo: PPU

Oct 15, 2020 (Thessherald)–As the country faces a bleak year of an economy collapse, the South Sudanese government has announced to inject millions of dollars into the financial market in an effort to boost the faltering economy.

South Sudan’s President Salva Kiir Mayardit and the Council of Ministers held an emergency meeting on Wednesday on the recent sharp depreciation of the South Sudanese pound against the US dollar on the black market.

In an official statement after the meeting, the President’s office unveiled that the government is in the process of securing sufficient loans and pumping millions of dollars into the market to help the economy gain momentum.

“President Salva Kiir and the government is in a final process of acquiring a loan that will be injected in the market to stabilize the currency rates. In addition, the Council of Ministers meeting also agreed to divert and inject the oil money into the market to help in the stabilisation of the market,” the Presidency announced on Wednesday.

South Sudan, after ending its conflict, has once again plunged into an economic crisis aggravated by poor monetary policies and corruption among senior government officials.

South Sudan’s government heavily relies on oil revenues

South Sudan is currently one of the most oil-dependent countries in the world with oil revenues accounting for 95% of government revenues.

Earlier this month, the country appointed a Tanzanian national, Dr. Patrick Mugoya as Commissioner-General of the National Revenue Authority, hoping to formulate an effective financial management system.

This was the second time that a regional economic expert has been assigned to oversee the country’s vital financial institution.

Reported by Buay Kapduel