South Sudan Market Entry

Subchapters:

Market entry
Forms and conditions of operation on the market
Marketing and Communications
Issues of intellectual property protection
Public procurement market
Payment terms, payment ethics and resolution of commercial disputes
Visas, fees, specific conditions of travel to the territory
Employment of citizens from the Czech Republic
Fairs and events

Market entry

A basic condition for successful penetration of the South Sudanese market is personal contact with the territory. Finding a reliable local partner – representative is essential. ZÚ Addis Ababa has recently encountered requests from South Sudan, which are mostly mediated through traders from neighboring countries (Kenya, Uganda). Unfortunately, it is difficult to verify the relevance and credibility of these requests. Check smber for agriculture and fishing facts of South Sudan.

There are currently no known customs or foreign exchange restrictions. The only valid ban applies to the import and export of weapons. The internal domestic market is practically non-existent.

Forms and conditions of operation on the market

Officially, the government generally supports foreign investment and tries to provide favorable terms to potential local representatives; see http://embassy-southsudan.de/geschaft-wirtschaft/investoren/?lang=en

According to the “Investment Promotion Act of South Sudan” of 2011, the Government of South Sudan provides the following guarantees to investors:

Non-discriminatory access to business in any sector with the exception of postal services, car rental and taxi services, where domestic investors are preferred.
Guarantee against expropriation.
Protection of intellectual property.
Access to public information.
Repatriation of profits and dividends.
It governs dispute resolution.

According to the website Doing Business: When starting a company, it is necessary to reserve a business name. According to local law, a South Sudanese lawyer must then prepare the memorandum and articles of association. The Certificate of Incorporation is issued upon payment of a fee at the commercial register. This is followed by the payment of a fee to the Jubek State Revenue Authority in order to obtain an “operating license”. A business license is issued by Payam (Juba City Authority) after filling out the appropriate form and carrying out an inspection at the company’s headquarters. This is followed by registration at the Ministry of Finance and a request for a Tax Identification Number. The tax directorate will again inspect the company and assign a TIN. This is followed by mandatory registration at the Chamber of Commerce, registration at the Ministry of Labour, opening a bank account and receiving a company stamp. In terms of ease of doing business, South Sudan ranks last in Doing Business.

Marketing and communication

Marketing and communication requirements are usually agreed with the relevant representative, on-site promotion is done through English brochures and technical descriptions. For consumer goods, but also for some equipment, there is usual promotion in the media. No significant fairs and exhibitions are held in the territory.

Issues of intellectual property protection

Officially, it is ensured by the Investment Promotion Act of 2011. However, in practice, it does not yet exist de facto in South Sudan.

Public procurement market

Information on published tenders can be obtained on paid internet portals.

Payment terms, payment ethics and resolution of commercial disputes

The primary risk is the current security situation, followed by the difficult availability of necessary information and unfamiliarity with the environment. It is difficult to establish contact with distributors.

The recommended payment terms are the same as in the case of other risky, or difficult to insure countries, irrevocable confirmed letter of credit (L/C), or optimally payment in advance.

Laws regulating business and investment remain undeveloped – the Labor Code, the Land Law or the Public Procurement Law are still awaiting approval by Parliament. The existing judicial system is inefficient, overburdened and susceptible to external pressures.

A major obstacle to investment is underdeveloped infrastructure (much of the country is inaccessible during the rainy season), lack of an educated workforce (only 27% of the population is literate), lack of electricity (the country is essentially completely dependent on inefficient generators). The lack of foreign currency in the country due to the long interruption of oil exports can lead to a shortage of foreign currencies in banks and the associated difficulties in taking profits out of the country (despite the guarantees of the investment law).

Widespread and unregulated corruption is a real obstacle to doing business. Opening a letter of credit is necessary to make larger payments. Several branches of international banks operate in the country. Due to the practically non-existent mutual trade with the Czech Republic, detailed information on payment conditions and payment ethics is not available.

Visas, fees, specific conditions for traveling to the territory

Up-to-date information on the visa application will be provided by the South Sudan Office in Berlin

Leipzigerplatz 8, 10117 Berlin

phone +49 (0) 30 206 4459-0/15

website: http://embassy-southsudan.de/?lang=en

You can also apply for a visa at one of the South Sudanese embassies: South Sudanese Embassy in Nairobi, Bishops Gate, 5th Ngong avenue, PO Box 73699, 00200, Nairobi, Kenya, tel.: +254 (0) 20 434 9107, 434 9335, or South Sudanese Embassy in Kampala, Plot #2 Sezibwa Road, Nakasero, Kampala, Uganda tel.: +256 414 271625, or South Sudanese Embassy in Addis Ababa, PO Box 3140, 1250 Addis Ababa, Ethiopia, tel.: +251 ( 0) 115 52 26 36, e-mail: addis_addis@ethionet.net

A visa can also be obtained upon arrival at the airport (it is recommended to check with the South Sudanese embassy in advance). Due to the security situation (armed clashes in various parts of the country), the Ministry of Foreign Affairs of the Czech Republic warns against traveling to the Republic of South Sudan. In the event of a stay in the country, he strongly recommends maintaining maximum caution, monitoring the current security situation and strictly respecting the regulations and instructions of the relevant authorities. In some cities there is a curfew at night.

Employment of citizens from the Czech Republic

South Sudan continues to apply the Sudanese Labor Code of 1997. Most local businesses operate in a gray area and widely ignore the applicable laws. Local authorities require 80% of staff to be South Sudanese, including management positions. This requirement has not yet been codified, but it should be included in the upcoming Labor Code. The Ministry of Labor therefore thoroughly examines every application for a work permit to see if the given position could be filled by a local citizen, many foreign companies complain about long delays in obtaining work permits for their foreign workers, or the short validity of this permit.

Access to health care is extremely limited. Serious health complications require evacuation to Nairobi, Addis Ababa or Kampala. However, especially during the rainy season, such an evacuation is difficult. Czech citizens should have travel insurance in a sufficient amount to cover the costs of treatment and also enough cash – even to cover possible evacuation. We recommend a consultation with a travel medicine center before your trip.