First Paper. General overview on South Sudan Trade and Investment Policy. 2. GOSS General Policy on Trade and Investment/Economic Objectives . Encouragement of free market and absolute prohibition of monopoly (ICSS 2005)The government at all levels is committed to facilitate the development of
1. Uganda/South Sudan Business Leaders Forum Gulu, Uganda
June, 30th -1st /July 2010
Directorate of Trade
Ministry of Commerce and Industry, GOSS 1
2. First Paper General overview on South Sudan Trade and Investment Policy 2
3. GOSS General Policy on Trade and Investment/Economic Objectives Encouragement of free market and absolute prohibition of monopoly (ICSS 2005)
The government at all levels is committed to facilitate the development of private sector.
Development of Conducive and effective regulatory framework for trade and investment to flourish in South Sudan
Encouragement of emergence industries
Prohibition of Discrimination. “ Foreign Investors may own, or control business organizations in any sector of the economy of South Sudan as domestic business organizations” (Investment Promotion act 2009)
Guarantee against Expropriation (Investment promotion act 2009)
Unrestricted Employment rights “equal pay for equal job” (Investment act 2009
4. GOSS General Policies on Trade and Investment/Economic objectives (Cont.) Repatriation of Capital, Profits and Dividends
Create job opportunities for the people of Southern Sudan (ICSS 2005)
Import Substitution and Export Promotion (ICSS 2005)
Free Interstate Trade and Commerce “ there shall be no levies or fees or any other charges on interstate trade and commerce in South Sudan (article 196 of ICSS 2005)
Promotion of Scientific and Technological Advancement (ICSS 2005)
Protection of Environment “ Environment friendly Investment shall be encouraged” (ICSS 2005)
5. Goss (MCI)-Priorities areas To create conducive environment for trade and investment for Private sector development
Continue developing favorable trade policies and regulations in consultation with private sector and other stakeholders
Support business development services to SMEs to stimulate economic activities in urban & rural areas.
Development of trade related institutions at all levels.
Catalyzing export oriented industrial growth and production through partnership.
Strengthening trade promotion and attracting direct foreign and domestic investment.
Promote investment in agri-business related areas to achieve food security and the necessary ingredients for the agro based industries.
Continue improving physical infrastructure for market access
Establishment of standards and metrology system for Southern Sudan.
Establish bi-lateral and multi-lateral trade and investment linkages regionally and globally.
6. South Sudan Current Investment Climate The climate is improving and it can be evidenced by:
Enacted laws; such as Land act, Investment act, contract act, limited liability act, partnership act, the agency act, registration of business names act, the partnership act, Trade & Industrial Licenses regulations among others enacted. There are 12 Mercantile laws enacted meant to create conducive atmosphere for Investment and Trade, other mercantile bills are awaiting enactment (Imports and Exports Regulations Bill, Consumer protection Bill, Standards Productivity and Innovation Bill, Metrication Bill, Weights and Measures Bill, etc.
Improved infrastructure; Roads under construction, telecommunication coverage is increasing, public institutional capacities are improving.
Public-Private Dialogue Forum established for creating enabling trade and investment policies and laws.
General security situation is good.
Number of local and foreign investors are increasing.
7. Challenges Poor Physical Infrastructure:
The cost of transport, telecommunication, water and sanitation services, power and energy, raise the cost of production and service delivery, thus undermining the private sector to do business in South Sudan
Lack of Capital and Scarcity of Financing sources
High Level and Multiple taxes
Access to land in some part of South Sudan
Low levels of Entrepreneurship and skills
Problems associated with Standards and Metrology systems
Absence of Framework for movement of labour:
There is some an ease by local people about the presence of foreign workers in South Sudan, allegedly depriving locals of opportunities that rightfully belong to them
Problem associated with Organization of Business Groups 7
8. Conclusion/Way forward Land policies have been enacted and regulations are being developed
Trade & investment policies shall be made practical and enforced, to attract investors
Registration of Businesses and Licensing are being made simpler to reduce the cost of doing business (Registry office established at MoLA&CD, One Stop Shop for all registry, permits and licensing is being considered)
Improvement of the infrastructure is continuously being realized
Harmonization and removal of double taxation is being consider and shall be enforced
Empowerment of entrepreneurship (Microfinance, Banking services)
Labour regulations will be put in place
Very close monitoring and evaluation 8
9. Second Paper The Memorandum of Understanding between the Republic of Uganda and the Government of Southern Sudan
Signed on 12th, February 2010 9
10. The Memorandum of Understanding on Promoting and Developing Trade Relations between GOSS and GoU Article 1 and 2: Establishment of The Join Trade Committee/ Composition
1- Ministerial Trade Committee
2- Technical Trade Committee
Article 3: Mandate of The Join Trade Committee
- Be the overall authority on trade matter
- To identify any problems that hamper bilateral trade cooperation and recommends solutions
- To identify incidences of Double and or Multiple Taxation; develop strategies and recommendations of harmonising the trade regime between the two parties
- Identify non tariff barriers; Develop strategies and recommendations for their elimination
-To foster cooperation in areas of capacity building in trade related issues between the parties
To identify and implement measures for improving the standards and quality of products traded between the parties
11. MOU (CONT.) Identify and implement measures for stimulating and promoting value addition to products traded between the parties
Facilitate and encourage participation in trade fairs, expos, bazaars and any trade promotion activity organized by either party
Encourage and facilitate the establishment of Free Trade Zones within the two parties where possible
Establish a Trade Dispute Arbitration Sub-Committee for cross border trade disputes between traders or business persons from the parties
Perform any other duties that may be assign by the Ministerial Trade Committee
Article 4 : Trade Dispute Arbitration Sub Committee
There shall be a Trade Dispute Sub-committee composed of members appointed by the Ministerial Trade committee
Rules of procedures for the Arbitration Committee shall be prepared by the Trade Technical Committee and endorsed by the Ministerial Committee 11
12. MOU (Cont.) Article 5: Institutional Provision
The Joint Trade committee shall:
Have a life span of five (5) years with an option of renewal at the expression of mutual interest by both parties
Meet alternately once a year in the Republic of Uganda and/or the South Sudan ( this apply to Ministerial Trade Committee)
Meet alternately on quarterly basis in the Republic of Uganda and/or the South Sudan (Technical Trade Committee)
Reach decisions by consensus
Forward any matter where the Technical Trade Committee is unable to reach consensus to the Ministerial Trade Committee
Draw up its rules, procedures and regulations of engagement (90 days from the date of signing the MOU) 12
13. MOU (Cont.) Article 6: Dissolution of the Committee
Either party may initiate a request for dissolution of The Joint Trade Committee by notice of three (3) months
The Committee shall endeavour to dispose of all outstanding assignments, disputes or any other duty during the three months notice of dissolution
The Committee shall not take on any new assignments, disputes or duty during the three months notice of dissolution 13
14. Conclusion The formation of the Trade committees both, Ministerial and technical is underway, has been interrupted by political events in Southern Sudan (Elections)
The Ministerial Trade Committee shall be composed of: Ministry responsible for Trade, Ministry responsible for Foreign Affairs, Ministry responsible for Internal Affairs, Ministry responsible for Justice, Ministry responsible for Finance, The President Office, the Central bank (BOSS and CBoU), Government Institution responsible for Standards and Metrology, Government institution responsible for Export Promotion, Customs and Taxes, Immigration, Government institutions responsible for Statistics, Police, Local authority at the border Points, Diplomatic Missions, Association of Ugandan Community in South Sudan, Association of South Sudanese Community in Uganda, the private sector and any other member as determined by the Ministerial Trade Committee
The Joint Trade Committee shall be chaired by the Minsters responsible for Trade on a rotational basis for a period of one year
Rules of procedure have been drafted and shall be signed and enforced this year (Should have 90 days after the date of signing the MoU)
15. Thank you very much for your attention May God Bless you 15