INVESTING IN SOUTH SUDAN
A PRESENTATION TO “CROISSANCE PEACE”.
A FRANCO-CHINESE BUSINESS ORGANISATION
EMBASSY OF THE REPUBLIC OF SOUTH SUDAN IN
FRANCE
PARIS,3rd MARCH 2015
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INTRODUCTION
After a mile-stone referendum on self-determination, SouthSudan became the newest nation on July 9th, 2011.
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1- GEOGRAPHY
RSS is a landlocked country with a surface area of 644 329
square kilometer, boarded by the Sudan, Central African
Republic, the Democratic Republic of Congo, Uganda, Kenya and
Ethiopia.
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2.DEMOGRAPHYMulti-ethnic society of about 64 tribes with a population of 11. 562. 695 of which those below 30 years constitute 75% of the population.
4.0 m 2.2 m
0
1
2
3
4
5
Displaced Returnees
Mil
lio
ns
Still Displaced
2.3 mPre-CPA
Post-
CPA
Post-
CPA
72% under 30
Remittances
$281 m $203 m $236 m
$354 m
$620 m $599 m
$-
$200
$400
$600
$800
2004 2005 2006 2007 2008 2009
Mil
lio
ns
Youthful, fast-growing population Returning Residents
Male Female
Economic Impact
Fast-growing population further swelled by: 2 million IDPs returning to farming and
other economic activity 300,000 diaspora returning from abroad
with education, know-how and capital
Drives demand for agricultural inputs and equipment, consumer goods, etc.
Source: Southern Sudan Relief and Rehabilitation Commission, International Organization for Migration, CAD
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3- ECONOMY
The main source of the economy is oil (98%), with small
contribution from tax collection and agribusiness.
3.1 The GDP is 14.77 billion US dollars
3.2 The per capita is 1900 US dollars
3.3 Growth rate 24.7%
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4- WHY INVEST IN SOUTH SUDAN?
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4.1 Conducive investment climate
Economic
Legal
Security
Stable democratic system
with elections every four
years
Legislative system with
an upper and lower
house
Independent judiciary
system
Political
Growing economy with a
priority to diversify away
from oil
Subsistence farming and
cattle-herding in rural
areas
Artisanal gold mining
throughout the country
Robust commercial
legal environment
Land Act in place to
promote private sector
investment
Established regulatory
environment
Directed by rule of law
Peaceful transition to
independence
Continuing efforts to
enhance security
Isolated incidents
along the border
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Political and Institutional
Framework
Tax incentives include:
Capital allowances: 20%-
100%
Deductible annual
allowances: 20%-40%
Other depreciation
allowances: 8%-20%
Duty exemptions and
concessions for imports of
machinery, equipment, and
agricultural products aiming
to boost food and cash crop
production
Favorable land tenure
policies
Favorable Investment
Promotion Policies
Investment Promotion Act of
2009 provides investor
protections in 7 key areas,
including:
Guarantees against
expropriation
Protection for intellectual
property rights
Mechanisms for dispute
resolution
Republic of South Sudan has
a priority to develop Public-
Private Partnerships to
facilitate investment in key
sectors
Regional/International
Political and Trade
Agreements
African Union
Common Market for East
and Southern Africa
(COMESA; in process)
European Union (EU)
American Growth and
Opportunity Act (AGOA)
East African Community
(EAC; in process)
Overseas Private
Investment Corporation
(OPIC; in process)
4.2 A positive, pro-business regulatory
environment
Established the South Sudan Investment Authority to create centralized
support and service center for investors considering investing or re-
investing in South Sudan. Services include:
Planning, Research and Information Systems
Proactive Investment Promotion
Investor Aftercare
Other Investor Services
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4.3 Ease of doing business
One-stop Shop Investment Center was established in 2011 and will
provide an informative and easy first step for investors, issuing:
Necessary paperwork including investment certificates, licenses,
and permits
Customer care services to facilitate meetings and arrangements
with business and regulatory agencies
One-Stop Shop Investment
Operationalized October 2013
4.4 Favorable potential local and International markets
Common
Market for
Eastern and
Southern
Africa
African
Growth &
Opportunities
Act
• Under AGOA South Sudan will be permitted to export eligible products to the US duty free
• Free trade area between 19 member states extending from Libya to Swaziland
East African
Community
• Free Trade access for members for the community
• Common tariffs on imports from third countries
EU
“Everything
But Arms”
• Duty Free & Quota Free Access tor products into the EU for the 49 LDCs
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Infrastructure
Petroleum
Mining
Agriculture
5. INVESTMENT POTENTIALS
OF SOUTH SUDAN
Staple crops
Export/cash crops
Livestock & Dairy
Poultry & Eggs
Fisheries
Forestry
Inputs
Gum acacia
Oil production
Oil exploration
Oil refineries & pipelines
Oil services (audit, laboratories, environmental assessment, data management, etc.)
Mining opportunities in gold, copper, lead, zinc, uranium, marble, aluminum, iron, and diamonds
Detailed geographical mapping and
surveys
Broader mining services (testing labs, data management, etc.)
Production of industrial materials
Construct 4,000 km in new roads
Build and upgrade regional airports and Juba International Airport
Develop hydro-electric power projects along the Nile River
Construction of new capital at Ramciel
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5.1 ENERGY 5.1.1 Fossil energy
Oil contitutes 98% of our revenu. Oil reserves are estimates at 3.71 billions making the country to rank 3rd of oil producing countries in Subsahara Africa behind Nigeria and Angola.
Only a small pourcentage of these reserves are exploited.
NB: Proven reserves of naturel gas in RSS is estimated at 1.1 trillions cubic meter.
14Source: European Coalition on Oil in Sudan
Producing
Not Yet Producing
Border
Border
OF THE BLOCKS IN SOUTH SUDAN, JUST 5 ARE
CURRENTLY PRODUCING AND EXPORTING
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Block 5b (under exp
Sudapet Petronas) Seeking
additional partners
Block A (Sudapet Saffir) is
seeking additional partners
Block B lin to Total
Consortium and Kupec
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5.2. PIPELINES
Refinery
Refinery
Refinery
Existing pipelines
Existing pipelines and refineries
Major Pipelines:
• 1,000-mile pipeline from Heglig and Unity fields to the Suakin oil terminal
• 870-mile pipeline linking Melut Basin to oil export terminal near Port Sudan
• 110-mile pipeline linking the Thar Jath and Mala fields to Port Sudan
Major Refineries:
• Khartoum: 100,000 barrel per day
• Port Sudan: 21,700 barrel per day
• El-Obeid: 10,000 barrel per day
Source: International Energy Agency (IEA), US Energy Information Administration16
Sources: Ministry of Petroleum and Mining, media reports
Planned pipelines
Toyota Tshusho recently submitted a proposal to design and construct a 3600km oil pipeline from South Sudan to the new port planned for Lamu on Kenya's Indian Ocean coast
Chinese officials and companies have also expressed interest in building the proposed pipeline
Alternative proposals include:• A 3000km pipeline through Ethiopia
to Djibouti• A shorter 800km pipeline to Uganda,
connecting to the proposed pipeline expected to carry Ugandan crude to Mombasa
The Government of South Sudan is open to all proposals
Potential pipeline routesCurrent status
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5.2.1 NON FOSSIL ENERGY
Fossil energy is finite and can be a threat to the environment andthe climate if not handled carefuly, as the country posses hugereserves of water, enjoys long periods of sunshine and perennialwinds, investment in renewable energy should now aim atdevelopping in these sectors.
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5.2.2 HYDROPOWER
Feasibilities studies are already available to construct four dams at
accessible sites on the white Nile between the Ugandan borders and
Juba plus additional 16 small ones accross the country.
20Source: SMEC “Pre-Feasibility Study Report” Oct 2009 – Parameters for recommended options
Dam: Fula Shukoli Lakki Bedden
Potential installed capacity
855 MW 1100MW 609 MW 522 MW
Dam height (max above river bed)
60M 75M 45M 42M
Dam length 760M 500M 385M 2775M
Turbines9 X
95MW11 X
100MW7 X
87MW6 X
87MW
Lead Time 5 years 5 years 5 years 5 years
1 2 3 4
Proposed Bahr El Jebel Dams
Dams to be contructed
Lakki
Shukoli
Fula
Fula
. Shukoli
Lakki
Bedden
Uganda
Border
Juba
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5.2.3 SOLAR
12 hours of sun / day in most seasons.
Solar radidation estmated at 5-6 kmh / m2 / day.
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Type of solar pannels
South Sudan experiences approximately 12 hours of sunshine per day all year round
Solar radiation 5.5 – 6.0 KWh/m²/day
Potential for small-scale PV installations to serve schools, health clinics, irrigation projects and commercial customers
Potential for larger scale solar thermal power plants in northern part of country
Source: weather-and-climate.com
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5.2.4 BIOMAS
Sugar cane, maize
Wast-power in most towns of the country
24Source: Ministry of Agriculture & Forestry; “Biomass energy potential and future prospect in Sudan” University of Nottingham
Sugar canes farms and factory
Given significant food imports, ample land and ideal climactic conditions, there is significant potential for combined food production and biomass-based power generation projects in various parts of the country
For starters, the Government is hoping to attract investors to restart 2 large-scale sugar and cogen projects at Melut and Mangala and a large-scale oil-palm mill and cogen plant at Nzara
The Government is also interested in proposals for urban waste-to-power projects in Juba and other major towns
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5.2.5 WIND-POWER
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6. MINING
South Sudan has proven reserves of various mineral
South Sudan mineral geological map
Source: Ministry of Petroleum & Mining
Geology of South Sudan showing major mineral deposits
Au: Gold
Cu: Copper
Fe: Iron
Mg: Manganese
U: Uranium
Zn: Zinc
CaO: Marble/Dolomite
◊: Gemstones
CaO
CaO
Cu
Cu
Cu AuAl
Al
Al
Mg
Fe
CaO
Au
Mg
Au
Zn
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7. INFRASTRUCTURES
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7.1 ROADS
Only 60 miles of paved roads
5208 km network of roads to link all major towns and boarders
crossing with CAR, DRC, Ethiopia, Kenya and Uganda.
Proposed road network
Source: USAID, Ministry of Transport and Roads, Ministry of Water Resources & Irrigation, South Sudan Development Plan 2011-
2014
More than 5000km of gravel roads have been constructed or rehabilitated, with another 3500km targeted for completion in the near future
3 new power plants and localised distribution networks have been built in Juba, Malakal and Wau
New airport terminal in Juba under construction and 5 regional airports are currently being rehabilitated
2 ports along the Nile are under construction, giving access to 1500km of navigable water
5 international telecom companies have established operations, bringing mobile coverage to 70% of the country
Water supply and treatment plants have been constructed and/or renovated in 5 cities
Major Infrastructure Achievements
Major Road Projects
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7.2 AIR TRANSPORT
3 IATA – standard airports
7 addional air-strips
All government owned but there is a possibility for interrested
investors to upgrade and operate any airports
32Source: (1) Airports in Sudan: Aircraft Charter World
(2) Presentation by the Directorate for Civil Aviation: Strategic work plans for Air Transport / Civil Aviation in Southern Sudan
Airport IATARunway
lengthRunway Customs IFR
Juba JUB 7800 ft Paved Yes Yes
Malakal MAK 6000 ft Paved No No
Wau WUU 7800 ft Unpaved No No
Aweil 2900 ft Unpaved No No
Bor 4100 ft Unpaved No No
Gogrial 3000 ft Unpaved No No
Pibor 3500 ft Unpaved No No
Rumbek 2800 ft Unpaved No No
Torit 3500 ft Unpaved No No
Yambio 3900 ft Unpaved No No
Existing airports
3 IATA-standard airports at Juba, Malakal and Wau, and 7 additional regional air-strips
All airports currently government owned and operated
Government has recently completed new terminal at Juba
However, government is open to proposals from investors interested in upgrading and operating any airport
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7.3 RAIL TRANSPORT
The only existing rail road is from Wau to Babanoussa in Sudan.
There is a proposed rail to connect Juba to Kampala and Nairobi.
34Sources: Ministry of Transport. Media reports
Existing and proposed railway network
The only existing line in South Sudan connects Wau to Babanusa and then on to Khartoum – the line was closed for many years, but reopened in 2010
With increase in freight and particularly potential for large-volume mineral exports, commercial opportunities may exist to build railway line connecting Wau to Juba and then on to link Juba to Mombasa via existing railways in Kenya and Uganda
Consortia led by Thyssen Krupp and Thormaelen have already expressed interest in building this critical link between the Red Sea and Indian Ocean
Proposed Railway Network
Existing track,
recently reopened
Proposed track
KampalaNairobi
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7.4 RIVER TRANSPORT (BRIDGES)
Between Sudan (Kosti) and Juba
Juba to Jinja (Uganda)
Along major tributries (Sobat) inside the country
Contruction of bridges over many rivers in South Sudan
36Source: Ministry of Transport, Ministry of Roads & Bridges
After 30 years of war and neglect, South Sudan’s transport infrastructure (roads, railways, river transport, airports) is virtually non-existent
The government, with support from donors, has embarked on a major investment program, rebuilding more than 2000km of roads, upgrading the main airport at Juba, and reopening the railway line from Babanusa to Wau
However, given the scale of work needed, the government is eager to attract private investors to build and operate infrastructure wherever the commercial returns make this attractive – so that the government can focus public resources on infrastructure that cannot be commercially operated (urban and rural roads, remote landing strips, etc.)
Juba bridge and airport
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7.5 BUILDINGS
Schools
Hospitals
Lodgment (low cost house)
Government building
38Source: Ministry of Housing and Physical Planning
Buildings undercontruction in Juba city
Juba Population (estimates) With population growth and returning IDPs
and diaspora, the population of Juba and South Sudan’s other towns has been growing at a phenomenal rate – the population of Juba alone has grown from 163,000 to over 450,000 in the last 5 years
As a result, there is huge unmet demand for:
• All levels of housing from low income to high end
• Offices for new businesses, government ministries, embassies, donors, etc.
• Retail shops, wholesale markets, shopping malls
• Industrial parks and zones
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7.6 COMMUNICATION
Mobile ( 4 operators, 2 million users)
Media (Radio, TV, press)
IT (High speed cable)
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7.7 MANUFACTURING
Cement, Iron steel (buildings materials)
Consumer goods (oil, dairy products, hygiene, medicines)
Heavy equipment (Assembled cars, trucks, tractors, spare parts)
South Sudan has the raw materials for local manufacturing of cement and most key construction materials
Potential sources of construction materials
2 major limestone deposits at Kapoeta and Yambio – each estimated to be at least x,000 tonnes
Widespread availability of granite and other stones and aggregates
Deposits of marble, mica and graphite in the South
Widespread availability of clays, sands and gravels (and kaolin) in central plains
Limestone
Limestone
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7.8 SANITATION
Provision of clean water to the population and cities and rural areas
Waste and sewage disposal (wast-to-power source of bio-energy)
Provision of medicines and medical equipment
Present health care system in South Sudan
Teaching Hospitals
State Hospitals
County Hospitals
Primary Healthcare Units and Centers (PHUC)
• 3 Teaching Hospitals (Juba, Wau, Malakal) • Capacity: 100 – 150 Beds • Publicly owned and operated to standardize
medical practice across the country
• 9 State Hospitals• Capacity: 100 – 150 Beds • Publicly owned. Accept patients from County
Hospitals for special treatments
• 28 County Hospitals• Capacity: 15 – 20 Beds • Publicly owned. Patients typically referred by the
PHUC
• 1,408 PHUC• Publicly owned, but run by NGOs and the Donor
community • First point of contact for all illnesses
South Sudan Public Healthcare System
Source: World Bank, Ministry of Health 43
The Ministry of Health recognises that it does not have the capacity to rebuild and run all the medical facilities
required ;
The Ministry therefore plans to bring in private contractors to run key elements of the medical system,
specifically the drug procurement & distribution system, the 3 Teaching Hospitals and the 9 State Hospitals ;
The Ministry is currently working on terms and conditions for these PPP concessions, based on a formula of
guaranteed volumes, a government-defined fee schedule and a component of patient fee for services.
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8. AGRO-BUSINESS
South Sudan has vast areas of fertile arable (30 hectares) land giving her the potential to become a bread-basket of Africa.
Staple cropsExport/cash cropsLivestock & DairyPoultry & EggsFisheriesForestryInputs
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Gaps to be filled
Capacity-building and development of our local workforce
Need to import equipment, tools, and agriculture inputs, given
lack of current production capabilities
Standardize regulations and processes as we continue to
develop our legal framework
Limited transportation and energy infrastructure throughout
the country
Enduring negative perception in international media
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Protection of the environment should be the priority throughout
our efforts to develop the country.
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