Investment law in South Sudan
- Law
- Investment Promotion Act 2009 1
- Body created by the Act
- Southern Sudan Investment Authority 1
- Certificate issuer since 2022
- Ministry of Investment 3
- Licences linked to a certificate
- Apply within 12 months of issue 1
- Transfer of funds
- Freely convertible currency through an authorised dealer bank 1
The law and the Investment Authority
Section 6 of the Act sets up the Southern Sudan Investment Authority as a body corporate 1. Its functions include promoting investment, giving services to investors and processing certificate applications 2.
The Act applies to all investments in the country. Its stated aims include attracting domestic and foreign investment and diversifying the economy 2.
Investment certificates
In January 2022 the Ministry of Investment cancelled old certificates, citing malpractice and forgery. New certificates were issued from 1 February to 1 March 2022, with fees in hard currency for international investors and in SSP for local investors, as reported by Obaj Okuj 3.
- National and foreign investors apply to the Authority for a certificate 1.
- A foreign investor may not invest without a certificate. A national investor without one must register the investment 1.
- Licences tied to a certificate must be applied for within 12 months of issue, and their fees paid within six months 1.
Activities reserved for nationals
The Third Schedule gives national investors priority in micro-enterprises, postal services, car hire and taxis, public relations, retail commerce, security services and cooperative services 1. Under section 33 the Board may add or remove reserved activities with the relevant ministers 1.
Incentives in the Act
The Second Schedule sets these allowances 1.
- Agricultural tools, machinery, tractors, pharmaceuticals, animal feed and seeds are exempt from duties and taxes for a period set by law 1.
| Incentive | Rate |
|---|---|
| Initial allowance in the first year of production 1 | 50% in developed areas, 75% in least developed areas 1 |
| Training and capacity building 1 | 100% 1 |
| Mineral exploration and drilling 1 | 100% 1 |
| Initial allowance on an industrial building 1 | 20% 1 |
| Computers and handling equipment, yearly 1 | 25% 1 |
| Industrial buildings, straight line 1 | 10% 1 |
Guarantees and the one-stop shop
Section 34 bars nationalisation or expropriation except in the national interest, on a non-discriminatory basis, with due process and fair compensation paid without undue delay 1. Section 37 guarantees the transfer of capital, loan payments and sale proceeds in freely convertible currency, subject to tax 1.
On 21 October 2024 the Minister of Investment, Dhieu Mathok, said the one-stop shop for investors had not been set up and would be soon, as reported by Obaj Okuj 4.
Common questions
Do foreign investors need an investment certificate in South Sudan?
Yes. Section 24(3) of the Investment Promotion Act 2009 bars a foreign investor from investing without a certificate 1.
Who issues investment certificates?
The Ministry of Investment has issued them since February 2022, as reported by Eye Radio 3.
Which businesses are reserved for South Sudanese nationals?
The Third Schedule lists micro-enterprises, postal services, car hire and taxis, public relations, retail commerce, security and cooperative services 1.
Can investors send profits abroad?
Section 37 guarantees transfers in freely convertible currency through an authorised dealer bank, subject to tax 1.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- FAOLEX: The Investment Promotion Act 2009, full text (2009)
- FAOLEX via UNEP LEAP: Investment Promotion Act 2009, legislation record (2009)
- Eye Radio, as reported by Obaj Okuj: Ministry of Investment unveils new investment certificate (31 January 2022)
- Eye Radio, as reported by Obaj Okuj: Investment minister to set up one-stop shop to ease investors registration (21 October 2024)
Related
- How to register a company in South Sudan
Steps, documents, fees and timelines for registering a company in South Sudan under the Companies Act 2012, from official sources.
- Business taxes in South Sudan
Business profit tax, income tax, excise and sales tax in South Sudan under the Taxation Act 2009 and Financial Acts, and how to file and pay.
- Import permits and customs clearance in South Sudan
Import licences, customs clearance at Nimule, electronic permits and the suspended e-petroleum fee in South Sudan, from official sources and named press.