Protection of foreign investment in South Sudan : making a case for consolidation of fragmented foreign investment-related laws

Abstract

Foreign investment (FI) is one of the important tools that developing countries use to foster economic growth. It involves capital flows from one country to another, granting extensive ownership stakes in domestic companies and assets. Governments in many developing countries are now giving new attention to the potential for foreign investment in their economies. The main reason being the desire for those countries to extend their market- price, grow their private sector and mitigate the external debt problem by attracting more private foreign investment. In this regard, South Sudan is not an exception. Despite efforts by the government of South Sudan to attract foreign investment in the country, foreign investors are still facing an extremely challenging investment climate because of fragmented foreign investment related laws which are scattered in different legislation passed by different law-making bodies. Some laws contradict others, and no reliable mechanisms exist to settle inconsistencies. In other words, the laws governing foreign investment in South Sudan are not consolidated making enforcement difficult and creating legal uncertainty. This legal uncertainty does not inspire investors' confidence. It is against this backdrop that this study is founded on the argument that foreign investment in South Sudan is regulated by a raft of fragmented foreign investment related laws which are scattered and inconsistent, posing a disincentive to inflow of foreign investible capital into the country for economic development. Therefore, the non-consolidation of these laws is detrimental to the future of foreign investment in South Sudan and addressing this uncertainty is important to boost the investors' confidence which is crucial to attraction of the needed capital, economic wellness of South Sudan and effective use of her economic resources. Thus, this research will seek to make a case for consolidation of fragmented foreign investment related laws in South Sudan.