The United States has raised concerns about transparency and security in South Sudan’s investment climate, warning that the issues are discouraging American businesses from investing in the country.
In a meeting on April 9 with Mining Minister Lasuba Lodoro, U.S. Ambassador Michael J. Adler cited a lack of transparency in decisions made by the ministry, according to a statement issued Monday by the U.S. Embassy in Juba.
The embassy said it supports American businesses seeking opportunities in South Sudan but cannot encourage further investment due to concerns over transparency and security. It added that both issues are linked to how public revenue and government offices are managed.
The concerns are particularly acute in the mining sector but extend to the broader economy, the statement said.
Minister Lodoro said the meeting with Ambassador Adler addressed a specific case involving a mining company linked to an American citizen that allegedly failed to comply with local regulations. He stressed that adherence to South Sudan’s legal framework is mandatory for all investors, regardless of nationality.
“We felt it was important to resolve these issues amicably to help our two countries work together as closely as possible,” Lodoro said after the April 9 meeting, adding that respecting national laws is key to maintaining peace and stability.
According to the embassy, the U.S. private sector lacks confidence in South Sudan’s investment environment, citing what it described as insufficient commitment by the transitional government to transparent business practices.
The embassy said increased U.S. investment could contribute to the country’s economic growth and urged reforms to create a more conducive environment for investors.
South Sudan’s national budget relies overwhelmingly on oil, which accounts for more than 90% of public revenue. By contrast, the mining sector generates little direct fiscal income due to weak oversight, limited infrastructure and regulatory gaps.
Although the government enacted a Mining Act in 2012 to formalize the sector, implementation has been slow. Officials have repeatedly said they aim to attract foreign investment and improve regulation, but concerns over transparency, security and governance continue to deter large-scale projects.
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