Since gaining independence in 2011, the South Sudan government has been working toward developing the legal framework to encourage the growth of the private sector and attract Foreign Direct Investments into the country. It has had some success attracting FDI into the financial sector; of the two dozen commercial banks operating in South Sudan, 80% are foreign-owned, many coming from Uganda and Kenya. The main threats to business success and investment inflows remain political unrest, insecurity, capacity weaknesses and dilapidated infrastructure.

However, despite the political instability South Sudan's economy has managed to maintain reasonable levels of output throughout the protracted period of civil war and the government together with development partners and neighbouring states, is working to create a conducive business environment. The South Sudan Investment Authority may grant special incentives to investments in strategic or transformational sectors, on request, including good tax and duty incentives on capital allowances, deductible annual allowances and other depreciation allowances, guided by the Investment Promotion Act 2009 of South Sudan.

AGRICULTURE

South Sudan holds one of the richest agricultural areas in Africa and the diverse soil and climatic conditions favour the growth of not only food crops including sorghum, maize, finger millet, rice, ground nuts, cassava, sesame, beans, fruits and vegetables, but also high value 'cash' crops like coffee, tea, cotton and sugar cane.

The potential for agricultural production in South Sudan is huge. Half of the 82m hectares of land surface in South Sudan is prime irrigable agricultural land and another 30m hectares is arable. Of the 30 million hectares, less than 5% is routinely under cultivation. In addition, the country has a 11.7-million-strong cattle herd, with 12.3m sheep and 12.6m goats, which present immense opportunity for commercialisation. About 32% of the land is covered in timber-rich forests, while the country's current wild fishery output is 140 000 t/y, with a potential of 200 000 t/y.

However, the agricultural sector is still in a very subsistent state with widespread use of traditional methods and equipment, and there is need for substantial investment to transform it to the level of being an export contributor. An increase in productivity of the sector requires increased level of mechanization and improved seeds and fertilisers and the use of new agricultural techniques and varieties. South Sudan is has multiple surface and ground water sources that are prime for irrigation development, to increase agricultural productivity.

Development of the agricultural sector would allow South Sudan to diversify her economy away from the heavy dependence on oil, and to mitigate the poverty and food insecurity of people at home, and in the region where the demand is high. Indeed, South Sudan has the capacity to produce more maize than her neighbours Uganda, Kenya and Ethiopia combined, if there is substantial agricultural investment that utilizes the vast swathes of arable land.

South Sudan provides long-term leases for agricultural projects as well as preferential access to the U.S. market via African Growth and Opportunity Act (AGOA).

Opportunities in Agriculture include:

• Agro-processing plants for a variety of crops and fruits
• Production high value crops for export including fruit and vegetables, sugarcane, cotton, tea and coffee
• Production of staple foods for local and regional markets like grains, pulses and oilseeds
• Gum Arabic processing and marketing,
• Quality inputs production including seed and fertiliser
• Pesticide production projects
• Agricultural credit facilities to acquire modern agricultural equipment and machinery
• Irrigation agriculture and development of irrigation schemes
• Animal products for the emerging local market; livestock, dairy, poultry and eggs
• Commercial fisheries for local and global markets
• Forestry plantations