Smart investors, savvy analysts and individuals familiar with emerging markets know that South Sudan has the potential to become Africa’s next best bet. So says David Raad and Associates (DR&A) who helps businesses explore and undertake opportunities in southern Sudan.
With few industries outside the oil sector and almost non-existent infrastructure, many international and regional investors are eyeing business opportunities in a newly independent South Sudan. Cement manufacturers are hoping for an increase in demand from the south as the region develops its infrastructure.
Pradeep Paunrana, managing director of Kenya’s Athi River Mining, producer of the Rhino cement brand, says that South Sudan will see considerable economic development over the coming years and that cement will be central to improving infrastructure.
East Africa Portland Cement managing director Kephar Tande said his company is also very interested in the southern Sudan market but that any investment is dependent on the outcome of recently announced economic reforms. Recent reports suggest that Kenya Commercial Bank (KCB) expects to expand its branch network in South Sudan in the coming years. Major foreign investments in South Sudan remain strategically concentrated within the oil, infrastructure, and services sectors. The investment landscape is currently dominated by significant capital inflows from China and South Africa, alongside key regional East African partners. Notable projects driving economic growth include large-scale oil exploration initiatives, a landmark $1 billion commitment from South Africa for refinery construction, and ongoing infrastructure development projects across the nation.
Rich in natural resources, South Sudan boasts some of the most fertile agricultural land in Africa, with vast arable lands suitable for crop farming and livestock. It is also home to untapped mineral deposits, a large network of rivers, and a diverse ecosystem that supports tourism and renewable energy projects. The government of South Sudan, in collaboration with international partners, has worked to establish policies that encourage foreign investment and sustainable economic growth.
With its rich natural resources, strategic location, and commitment to economic reform, South Sudan is positioning itself as a hub for investment in East and Central Africa. The government’s pro-investment policies, combined with the country’s youthful workforce and untapped markets, ensure long-term profitability for businesses.
Kenya’s East African Breweries Ltd (EABL) has also established a brewery in southern Sudan. This subsidiary is part of EABL's broader regional footprint, which focuses on production and distribution across East Africa, including beer and spirits sales in South Sudan.
Many business people are, however, adopting a wait-and-see approach. Uganda’s Daily Monitor reports that many Ugandan traders will not return to South Sudan until they can be assured of their safety. According to the newspaper, Ugandan traders in South Sudan have reported cases of harassment and human rights abuse by security officers and influential people in the region.
Adel Ali, chief executive of United Arab Emirates-based Air Arabia believes that southern Sudan needs significant infrastructure development before the region’s aviation industry can really be developed. Air Arabia has been operating flights to Khartoum since 2004 but has no immediate plans to service South Sudan.
Ali added that although southern Sudan’s aviation sector holds possible potential for investment, more clarity is needed on the government’s investment plans.
South Sudan: Economic Outlook
The economy of South Sudan is one of the most oil dependent economies in the world, despite being endowed with bountiful natural resources. It has a very fertile agricultural land and vast number of livestock. South Sudan has an estimated total of over 36 million head of cattle, sheep, and goats, with livestock populations exceeding the human population. Political instability, poor governance, and corruption continue to hinder development in the world's youngest country.
South Sudan exports timber to the international market. Some of the states with the best known teak and natural trees for timber are Western Equatoria and Central Equatoria. There are teak plantations located at Kegulu; the other, oldest planted forest reserves are Kawale, Lijo, Loka West, and Nuni. Western Equatoria timber resources include mvuba trees at Zamoi.
Business Opportunities in South Sudan
Since its independence on July 9, 2011, South Sudan’s economy has been growing at a steady pace. As of April 2026, South Sudan's nominal GDP is projected at $6.07 billion, with a real GDP growth rate of 4.1%. The economy, largely dependent on oil, is plagued by high inflation (14.0%) and instability, with a GDP per capita of approximately $488. However, due to instability in the oil prices in the global market, and concurrent shocks to GDP growth in 2026 is projected to contract. The COVID-19 pandemic and climatic conditions had also contributed in exacerbating poverty, access to services and general living standards for many South Sudanese.
Prior to independence, South Sudan produced 85% of Sudanese oil output. The oil revenues according to the Comprehensive Peace Agreement (CPA), were to be split equally for the duration of the agreement period. Since South Sudan relies on pipelines, refineries, and port facilities in Red Sea state in North Sudan, the agreement stated that the government in Khartoum would receive 50% share of all oil revenues. Oil revenues constitute more than 90% of the government of South Sudan's budget according to the southern government's Ministry of Finance and Economic Planning and this has steadily grown since the signing of the peace agreement.
However, the signing of the most an important truce in 2018, and subsequent formation of the Revitalized Transitional Government of National Unity (R-TGoNU) in 2020, had provided hope for recovery and peace building. Nonetheless, South Sudan still faces the risk of reversing these gains, with increased incidents of concurrent shocks and the intensity in subnational violence that threatens stability.
“Looking ahead, we expect the South Sudanese economy to recover provided that the authorities adhere to agreed upon reform priorities,” said Joseph Mawejje, World Bank Economist. “Developments in the oil sector will continue to play a critical role, but favorable climatic conditions and peace and security are also essential elements. Recent advances in the development of a COVID-19 vaccine have raised hopes that the global economy could recover faster, which should support a sustained uptick in oil prices, more foreign direct investment, and remittances for South Sudan.”
South Sudan: Oil Industry
South Sudan’s oil industry is steadily recovering as a power-sharing government that ended five years of civil war remains in place, with production increasing to more than 170,000 barrels a day. That’s still significantly down from levels before civil war broke out in 2013.
In recent years, a significant amount of foreign-based oil drilling has begun in South Sudan, raising the land's geopolitical profile. Oil and other mineral resources can be found throughout South Sudan, but the area around Bentiu is commonly known as being especially rich in oil, while Jonglei, Warrap, and Lakes have potential reserves.
During the autonomy years from 2005 to 2011, Khartoum partitioned much of Sudan into blocks, with about 85% of the oil coming from the South. Blocks 1, 2, and 4 are controlled by the largest overseas consortium, the Greater Nile Petroleum Operating Company (GNPOC). GNPOC is composed of the following players: China National Petroleum Corporation (CNPC, People's Republic of China), with a 40% stake; Petronas (Malaysia), with 30%; Oil and Natural Gas Corporation (India), with 25%; and Sudapet of the central Sudan government with 5%.
The other producing blocks in the South are blocks 3 and 7 in eastern Upper Nile state. These blocks are controlled by Petrodar which is 41% owned by CNPC, 40% by Petronas, 8% by Sudapet, 6% by Sinopec Corp and 5% by Al Thani.
The World Bank supports South Sudan primarily through grants and zero-interest financing from the International Development Association (IDA) rather than traditional loans, focusing on economic stability, energy, and health. Recent support includes an $18 million facility to strengthen the banking sector and financial policy through 2028.
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