By Matik Kueth
The United States has expressed renewed concern over transparency and security issues in South Sudan, cautioning that persistent governance gaps are undermining confidence among American investors, particularly in the mining industry.
The concerns were expressed during a meeting on April 9th between US Ambassador Michael J. Adler and Mining Minister Losuba Ludoru, according to a statement from the US Embassy in Juba.
Washington reiterated that while it supports private American companies exploring opportunities in South Sudan, it cannot actively encourage further investment under the current conditions.
The embassy pointed to weak transparency systems, insecurity, and broader institutional challenges as key deterrents to business confidence.
Officials noted that the concerns are especially serious in the mining sector, though they also reflect wider economic governance issues.
According to the statement, uncertainties in public revenue management and regulatory enforcement continue to discourage long-term investment.
Minister Ludoru, however, pushed back on parts of the concerns, explaining that the discussions focused on a specific case involving a mining company linked to an American national allegedly in breach of local regulations.
He stressed that all investors, regardless of origin, must comply with South Sudanese law.
“We felt it was important to resolve these issues amicably to help our two countries work together as closely as possible,” Lodoro said, emphasizing that adherence to national laws is essential for stability and orderly investment.
The embassy further warned that the lack of confidence from the U.S private sector reflects deeper structural challenges, including limited commitment to transparency and regulatory reforms.
Despite its vast mineral potential, especially in gold, the mining sector remains largely underdeveloped.
Most activities are dominated by artisanal and small-scale miners operating with minimal regulation.
Although South Sudan enacted a Mining Act in 2012 aimed at formalizing the sector, implementation has been slow.
Repeated government pledges to attract foreign investment and improve oversight have yet to translate into significant large-scale mining development.