Republic of South Sudan Eastern Equatoria State Investment Profile Page 1
Republic of South Sudan
Eastern Equatoria State Investment Profile
Published by the Ministry of Commerce Investment Industry and Trade
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Introduction The Ministry of Commerce Investment Industry and Trade Investment Initiative is focused on voicing a call for action to mobilize the states leaders in business and government to make progress toward improving the states economy through vital investments in potential growth industries, such as agriculture, energy, mining, health care, communications, financial services, industry and education. The ministry will establish partnerships to enhance the opportunities and foster innovation in these sectors. The ministry is committed to promoting Eastern Equatoria State (EES) as an attractive investment destination through a number of approaches but not limited to; Participating in forums to showcase the different sectors and innovations of the SME sector; Promoting research and formulation of policy to enhance economic growth; Supporting the development of online platforms containing information about EES which can be accessed internationally.
Background While South Sudans political, economic, and social development is in its infancy, a legal framework for investors, co-developed with a team from the International Monetary Fund (IMF) and the World Bank, has been established to encourage the nascent private sector It is our hope that this presentation will stimulate interest of investors who may not be aware of South Sudan's, particularly Eastern Equatoria States latent opportunities, or of the government's desire to see private investment in the forefront of development. EES is one of the ten states in south Sudan, the newest nation on the African Continent. As a state we are looking to create public private partnerships so we can work together in creating opportunities which will lead the region in becoming a force to reckon with.
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General Description if the state Eastern Equatoria State is one of the ten states of South Sudan with its capital in Torit. The state covers a land mass of 82,540 km 2 . The geographic location of the state provides it with great opportunity for economic development as a direct result of cross border trade and its abundant potential of untapped natural resources. The bulk of South Sudans trade comes into the country through the state which shares borders with Ethiopia, Kenya and Uganda. South Sudans political, economic, and social development is in its infancy, as a result, a legal framework for investors, co-developed with a team from the International Monetary Fund (IMF) and the World Bank, has been established to encourage the nascent private sector. The private sector is slowly beginning to pick up in terms of small business operations. The livelihoods of the people are centred mainly on pastoral activities and subsistence agriculture.
Why Eastern Equatoria State The state as a virgin economy presents a great potential for economic growth through its bounty of untapped potential markets in various sectors. The state lies at the south eastern part of South Sudan and presents a bounty of opportunity. It is the gate way into South Sudan by from Ethiopia, Kenya and Uganda which is a major trade that Connects South Sudan with the East African trade block. The State capital, Torit is 131km from Juba the capital of South Sudan making it easy for short excursion in and out of the state capital by road and only 45 minutes by air. Investment Opportunities With South Sudan being the newest investment destination following its independence the investment opportunities are endless. Eastern Equatoria as you have already seen plays a pivotal role in the economy of South Sudan being at the cross roads of three trade partners and the entry point for the bulk of the nations foreign trade. Republic of South Sudan Eastern Equatoria State Investment Profile Page 4
EES prides itself in having a range of sectors for current and future investment as listed below; Health Care Communications Tourism Agriculture Mining Real-estate development Industry Financial Services Education Energy
Agriculture EES has two main seasons and receives rains between April to November and have an annual average of 1,500 mm in the highland and 750 mm in the lowlands. The vegetation ranges from equatorial dense forests in the mountains through wooded savannah grasslands to semi arid to arid scrubland in the north and northeast. The soils are sand loams in the higher ground and black cotton soils in the lowlands. It is estimated that 78% of the states land is suitable for large-scale commercial farming and processing of cotton, tea, coffee, sugarcane, wheat, fruit, maize, wheat, sorghum, cassava, sweet potatoes, millet, sesame, groundnuts, various vegetables, and forestry products such as gum Africa, Soft wood timber and honey. Opportunities exist across the value chain, particularly with storage and processing facilities. Agriculture stands to grow exponentially providing livelihood to over 80% of the population with room for diversification of production of food and cash crops.
Mining EES offers excellent opportunities for mineral prospecting and development. Geological studies have identified vast potential for the commercial exploration of gold, lime stone, fossil fuel and other precious stones. The oil fields (Block B) form part of Africas third-largest oil reserves in Africa. Properly developed and utilised, Eastern Equatoria States natural resources and particularly mineral can significantly enhance the states economy. Republic of South Sudan Eastern Equatoria State Investment Profile Page 5
Energy Sector The state is dependent mainly on two forms of energy namely: petroleum, wood fuel. At present there is a geothermal plant that provides 10KW of electricity while the vast population relies of power generated from generators. A small population currently use solar and biogas while the rural areas mainly use wood-fuel. The state has potential to generate electricity along the river Nile at Fulla falls and along river Kinaite at Katire. Other opportunities include production of energy using solar panels and wind power; Generation of power using biogas, transformers and generators.
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Tourism EES has scattered hills separated by extensive flatlands and valleys. The highest point in South Sudan is the Imotong Mountains, which form a mountain range along the South Sudan-Uganda border. The Imotong Mountain range has vast caves and is a historic site where Queen Elizabeth took refuge during the 2 nd world war. The state has a number of historic and cultural sites yet to be explored by the outside world. The people of EES have a rich cultural heritage which is displayed through local handicrafts, and way of life. The crafts are much sought after across the globe and present a good opportunity for the investment in this niche segment. This sector has great potential for creation of jobs.
There are vast tourism opportunities in this area where the eco system is one unrivalled by any other in the world having some of the largest migration patterns and species only found in this region of the world.
The state boasts of scenic attraction sites for bird watching and the largest migration of the white eared cob which can only be found in this part of the world. There are opportunities in the construction of hotels, lodges, camping sites and resorts in the game parks and game reserves promoting ecotourism. The mountain rages offer Scenic Mountain claiming and outback adventure while the rivers are excellent for white water rafting. The increasingly large international community presents the opportunity to provide international and specialized restaurants and cuisines. Republic of South Sudan Eastern Equatoria State Investment Profile Page 7
The vast forest, natural vegetation, numerous rivers and streams is ideal for industrial lumbering saw mills, furniture shops and non timber forest products such as Gum Arabic, honey and many others.
The vegetation cover also presents an opportunity for recreation, ecotourism carbon sequestration and trading (carbon foot print). The construction of tourist resorts and hotels still remains untapped yet has great potential for both domestic and foreign tourism be it for leisure or adventure.
Real-estate development South Sudans rapidly increasing housing demand, largely due to urbanization and an influx of foreigners, presents a plethora of opportunities for construction companies and suppliers.
The construction boom has placed a high demand on cement, bricks, steel, roofing materials and timber. EES has vast forest reserves with teak trees and lime stone deposits which can be tapped into to meet construction demands. EES has extensive opportunities in the construction industry, particularly in the construction of roads, residential development, commercial and industrial construction, low-cost housing.
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The state government has put special attention to the development of the states overall infrastructure. Development of Water and sewerage facilities also presents a great opportunity for investment with enormous potential.
Communication Sector EES as indeed South Sudan is a virgin territory in relations to communication. The government has embraced new technologies in implementing its activities and requires having functional communication systems. With talk of fibre optic links EES stands to benefit the most by being the closest state to Kenya through which this link will connect. Investment Opportunities include; Call and Contact Centres, Software Design and Development, ICT training services, Back Office Services Industry The industry or manufacturing sector is in its infant stages but with great potential to grow. The sector plays an important part in adding value to accelerating growth both in the formal and informal sectors through a range of ventures such as private public partnerships, small and medium enterprises and large scale industry development. Opportunities exist in lumbering and paper production, textiles, metal and engineering works and many others.
Financial Services At present Eastern Equatoria State like much of South Sudan lacks financial institutions. EES being a major hub for trade at two main boarder points and the exponential growth along the trunk roads and boarder towns there is an increased need to have banking services provided not only to the government but also to the general population. EES provides an opportunity for financial institutions to grow their portfolios and introduce a wide range of products and services such as cooperative banks, microfinance institutions, rural banking, traditional banking services, and money transfer. At present there are four financial institutions operating in the state with limited services in the state capital Torit and in Nimule the major boarder town. Republic of South Sudan Eastern Equatoria State Investment Profile Page 9
Health Services The number of private care facilitates has grown but is not able to meet the demand or provide specialized health care that is much needed. At present referrals are made to the neighboring countries. With increased number of foreign workers and investors there is an ever growing need to establish first world class health care. The health care sector not only presents the opportunity to provide traditional Medicare but also in providing specialized medical services and production of pharmaceutical products locally.
Education Education is a driving force for the future generations. EES has seen growing numbers in both primary and secondary schools however there are limited tertiary schools to absorb the growing numbers. Presently a number of students go to Kenya and Uganda a trend which could change once quality primary, secondary, technical institutions and tertiary institutions of higher learning are set up and operational.