November 11, 2006 (JUBA) - South Sudan is so much talked about as presenting a very good opportunity to make money. There are many investors who are keen to exploit the new opportunities being presented in what is seen as virgin territory. There is a lot of misconception of what one can or cannot do. At the same time the Government of Southern Sudan is trying to develop economic and legal policies in order to create an enabling environment for business in Sudan.

The main area of attention is Juba while there are many other towns i.e., (Wau, Rumbek, Yei, Torit, Bor, Malakal etc) which also present new opportunities for investors. While these opportunities exist one has to remember that Southern Sudan alone covers an area of 850,000 sq.kms which has little or no infrastructure. The only tarmac road built there was in Juba in 1972 and it's now well gone.

The capital Juba is probably the most expensive capital in the world and is certainly the most backward. Lacking basic facilities it has given many entrepreneurs the chance to make quick money where one pays 150 USD for a bed in a tent or a prefarb building per one night. Housing is expensive, the cost of house rent in Juba is six times that for the equivalent in Nairobi and one has to pay 6 months in advance. The roads, electrification and water are being worked on. NGOs and Offices pay up to 4000 USD per month for old renovated buildings.

The land tenure issue is still not fully sorted out. There are three levels of administration, which are involved the GoSS, the Government of Central Equatorial which is responsible for Juba together with the Municipal Authorities. One business company recently purchased 2 acres of land in Juba legally correct. It was expensively fenced and a borehole put in at the cost of 50,000 USD, Hotels etc. were planned to be built on it though agitation by a local MP and three chiefs etc, it was all destroyed as well as the plot for a Japanese consulate and some SPLA generators in their camp near the airport. The authorities took corrective action however and arrested the culprits.

Investing in South Sudan is not therefore without risks and something needs to be done to resolve the problem over land. Ironically there is no shortage of land there. Sincerity is also a concern on the main roads to the towns and they also need a lot of repair. Many issues are being tackled while the Government develops its capacity. Many senior Government officials live in small one little rooms which cost 4500 USD per month. So GoSS officials themselves have serious problems with accommodation.

You can rent 3 posh homes in the suburbs of Nairobi for the same price of one small house in Juba and have to pay six months rent in advance. As a result some are taking advantage of this and making huge sums with returns of 80% profit. As these towns develop these short term opportunities will disappear and new ones will emerge.

There is a lot of money floating around and all kinds of services are required, one is talking about building a new country which enormous resources of every kind. There is also serious lack of human resources to the degree that one finds waitresses and barmen coming to work from neighbouring countries i.e. Kenya, Uganda. This is also expensive when business has to accommodate and feed basic staff.

An NGO staff member so long in Sudan commented it's hard to get a good meal there and two days later he is down with typhoid.

The Sudan Mirror therefore wants to encourage debate and give some information on its twice weekly edition on various issues regarding business. We will talk and raise issues with Government Officials on concerns which can better develop business in Sudan in general and on the South in particular. There is a serious need to open a forum on these issues. People will not feel the benefits of peace without proper economic development the Government and no Government anywhere can and does provide these opportunities, this, they merely facilitate, regulate and set economic policies to assist. The private sector though small exists within the South Sudan and will develop, for the time being, the larger businesses which have developed in East and Southern Africa over the past forty years will form the main impetus for economic investments in the South in particular.

While one points out the current obstacles many are being dealt with. A most positive aspect is the eagerness and co-operation of Government officials in the South who are more than eager to assist with the development of their country. They fought a long bitter war for this reason more than any other having seen their country as the most underdeveloped in Africa. This was not accident. There are even efforts today to sabotage the South from developing and they are most aware of this therefore want to counteract it.