The Legal Barriers to Foreign Direct Investment in South Sudan's Oil and Gas Sector/ Industries

Abstract

Foreign direct investment (FDI) is critical for developing countries seeking to exploit natural resources and stimulate economic growth, yet legal and institutional barriers often hinder its effective attraction and management. This study examines the legal barriers to FDI in South Sudan’s oil and gas sector, with particular attention to fragmented legislation, regulatory uncertainty, and institutional weaknesses that undermine investor confidence. Lessons are drawn from comparative experiences in Nigeria and Angola, where the adoption of coherent legal frameworks and investment protocols facilitated a more predictable investment environment. The research analyses regional and international instruments, including the African Investment Protocol, the ICSID Convention, and other relevant treaties, to assess how they shape South Sudan’s investment landscape and the protection of investor rights. Using a doctorial approach, the study examines statutes, case law, treaties, and conventions, complemented by secondary sources such as journal articles, reports, and policy analyses.Findings reveal that South Sudan’s oil and gas sector is constrained by overlapping laws, weak regulatory enforcement, and a lack of clarity in legal provisions regarding investment protection and dispute resolution. Comparative insights underscore the importance of consolidating fragmented laws, strengthening institutional capacity, and aligning domestic legislation with international best practices to attract and safeguard FDI. The study concludes that legal reforms, guided by lessons from Nigeria and Angola, and informed by international investment frameworks, are essential to provide legal certainty, enhance investor confidence, and promote sustainable development in South Sudan’s oil and gas industry.