The second edition of the Juba Economic Forum concluded on Wednesday with calls for the government to remove the annual renewal of investment certificates which has been identified as a burden by investors.
The three-day economic forum which was organized by Central Equatoria State Business Union raised concerns in the areas of infrastructure development in terms of roads, storage facilities, ports, airports, and construction of hydroelectric dams to attract investors.
The forum also generated resolutions for various sectors including agriculture, trade and Investment, transport and energy, and dams among others.
On trade and Investment, the forum resolved that youth and women funds be operationalized and the necessary resources allocated to these groups as stipulated in the peace agreement. It also called on the government to establish an Investment Fund to finance businesses, trade initiatives, and innovation.
Other resolutions include considering targeted tax and non-tax incentives for capital investments in critical strategic sectors such as manufacturing, building materials, agribusiness, mining, logistics, education, and healthcare. “These incentives should be widely publicized for greater impact,” the resolutions read in part.
Ambassador John Bosco Kalisa, the Chief Executive Officer (CEO) of the East African Business Council, said the annual renewal of investment certificates sends a negative signal to both local and foreign investors. He revealed that investors are charged USD 1,000 annually as fees for renewing their investment certificate.
Amb. Kalisa urged the Government of South Sudan to align its investment policies to those of the East African countries which give investors a renewal-free period of ten years.
“There is nowhere in the world that you renew an investment certificate every year, and the renewal costs USD 1,000. And I mentioned it here that we need to build confidence,” he stated. “At least we give the local or international investors 10 years. I am coming from East Africa where investors are given 10 years so that they can recoup their investment.”
“So, my humble request to Investment Minister Dhieu Mathok is that this annual renewal of Investment certificates is very bad and it sends a very negative signal to whoever wants to invest here for long so let us have a long-term vision and remove this USD 1,000,” he stressed.
However, responding to Amb. Kalisa’s call, Minister Mathok said the annual renewal of investment certificates is stipulated in the Investment Act and that removing it requires amending the law.
“My friend has raised a very good point. Why are we renewing investment certificates annually?” he said. “This is in the Investment Act and if we need to leave it, we must then amend the Investment Promotion Act. And these are things that need debate.”
The minister however said that the USD 1,000 is nothing compared to the millions investors are making in the country.