South Sudan is set to hold its first National Economic Conference next week amid a U.S. business advisory against investment with government-linked entities in the country over allegations of corruption in the oil and gold sectors.
The Economic Conference will be held from 4th to 8th September 2023, to pave the way for economic transformation.
Finance Minister Dr Bak Barnaba Chol said earlier the conference will be used as a platform to inform the economic sectors, stakeholders and development partners about the status of the public financial reforms.
The conference comes as the Biden administration on August 14, 2023, issued a report highlighting risks for American citizens and businesses doing business with institutions related to the South Sudan government over an alleged failure to implement political and economic reforms.
The advisory titled, Risks and Considerations for U.S. Businesses and Individuals Operating in South Sudan, names specific activities and sectors within South Sudan that are of concern to Washington investment.
These are government tenders, oil, and gold, contracts managed by government entities for the delivery of assistance, and Arms, military equipment, and related activity.
In the advisory republished by Sanctions and Exports Control Update, on Thursday, the three U.S. departments of State, Labor and Treasury said lack of transparency in South Sudan’s natural resource is the main cause for concern.
It cited the 2021 ranking of South Sudan as the most corrupt country in the world by Transparency International and the subsequent ranking of the country as the second worst in the 2022 corruption index.
The Business Advisory alleged “substantial diversion of revenue from the oil and gold industries to fund illicit activities or payments to government officials.”
It further cited contracts managed by governing entities for the delivery of assistance.
It said: “companies should flag for compliance review unnecessary fees, engagement with unqualified companies, and diversion of funds intended for humanitarian relief.”
“Businesses and individuals that operate or consider operating in South Sudan should be aware that the government’s failure to implement its own commitments on public financial management reform leaves insufficient protection against revenue generated from South Sudan’s natural resources being diverted to the enrichment of political elites,” the advisory stated.
Meanwhile, South Sudan government spokesperson Michael Makuei Lueth condemned the advisory saying it is an attempt to throw shade at the upcoming economic conference.
Makuei said South Sudan cares less about the advisory since U.S. firms are not doing business in the country.
“Who are the investors here in South Sudan? After all there are no American investors here, there are no US investors here, because US had ever been clear against the government of South Sudan,” he told reporters on August 15.
“The reason why they are saying it is risky to go and invest in South Sudan is because we are preparing for an investors conference. So, for them to stop the American citizens from coming to attend this conference, they had to preempt it by saying, no South Sudan is risky.”
Makuei condemns the advisory as a “negative attitude” towards the country.
“This is also another negative approach and negative attitude. South Sudan is branded as a state against American interest, and as such they don’t want Americans to come and invest here. So they are stopping from coming to attend this conference only, but others are allowed.”