South Sudan Business Overview

Business and Economic Overview

Since the onset of the civil war, the disruption of oil exports and the fall in global oil prices, South Sudan’s economy has considerably suffered. Indeed, crude petroleum has consisted of in excess of 99.5% of South Sudan’s exports and is the significant source of the government’s foreign exchange.

There is also significant disparity between the overvalued official exchange rates and black-market exchange rates as the South Sudanese Pound continues to depreciate.

South Sudan ranks 185 of 190 in the World Bank’s 2023 Ease of Doing Business Index and 172 of 190 in their Ease of Starting a Business Index. The Government of South Sudan welcomes foreign commercial activity and investment although political violence, corruption, poor financial management and extremely lacking infrastructure make South Sudan a difficult place to do business.

International companies have frequently complained about the inability to convert local currency into US dollars. This led to SABMiller ending Sudanese production in 2016.

Nevertheless, there are every few restrictions on foreign firms operating in or exporting to South Sudan. Given the predominance of the petroleum industry to South Sudan’s economy, the vast majority of opportunity exists in this sector.

Significant infrastructure renewal is also required, but the government lacks the finance to undertake large scale projects.

Overall, the political situation and government’s financial management are the determinants of the ease of doing business and the scale of commercial opportunity in South Sudan. Market entry is suggested through a partnership with either a government or military official, as these figures own most private enterprise and are more likely to win government contracts.

Reference

• https://archive.doingbusiness.org/en/rankings