rd MARCH 2015 PARIS,3 rd 15 INTR TRODUC ODUCTIO ION After a - PowerPoint PPT Presentation

INVESTIN TING IN SOUTH SUDAN A PRESENTATION TO “CROISSANCE PEACE”. A F FRANCO-CHIN INESE BUSINESS SS ORGANISATIO TION EMBASSY Y OF THE REPUBLIC LIC OF SOUTH SUDAN IN FRANCE rd MARCH 2015 PARIS,3 rd 15

INTR TRODUC ODUCTIO ION After a mile-stone referendum on self-determination, South Sudan became the newest nation on July 9 th , 2011. 2

1- GE GEOGR OGRAP APHY HY RSS is a landlocked country with a surface area of 644 329 square kilometer, boarded by the Sudan, Central African Republic, the Democratic Republic of Congo, Uganda, Kenya and Ethiopia. 3

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2. 2.DEMO MOGR GRAPH PHY Multi-ethnic society of about 64 tribes with a population of 11. 562. 695 of which those below 30 years constitute 75% of the population. Youthful, fast-growing population Returning Residents 5 Post- Male Female Still 4 Displaced CPA Millions 3 2.3 m Pre-CPA 2 72% under 30 Post- 1 2.2 m CPA 4.0 m 0 Displaced Returnees Remittances Economic Impact $800  Fast-growing population further swelled by: $620 m $599 m  2 million IDPs returning to farming and $600 Millions other economic activity $354 m $400 $281 m  300,000 diaspora returning from abroad $236 m $203 m with education, know-how and capital $200  Drives demand for agricultural inputs and $- equipment, consumer goods, etc. 2004 2005 2006 2007 2008 2009 Source: Southern Sudan Relief and Rehabilitation Commission, International Organization for Migration, CAD

3- ECO CONO NOMY MY The mai ain source rce of the e economy onomy is oil il (98% 8%), ), with th smal all contri ntribut bution on from rom tax x col ollect ection on and d agri ribusi business. ness. 3.1 The GDP is 14.77 billion US dollars 3.2 The per capita is 1900 US dollars 3.3 Growth rate 24.7% 6

4- WH WHY INVES VEST T IN SOU SOUTH H SU SUDA DAN? ? 7

4.1 Conduci nducive ve investm vestmen ent t cli lima mate te  Robust commercial  Stable democratic system legal environment with elections every four  Land Act in place to years promote private sector  Legislative system with Political Legal investment an upper and lower  Established regulatory house environment  Independent judiciary  Directed by rule of law system  Growing economy with a  Peaceful transition to priority to diversify away independence from oil  Continuing efforts to Security Economic  Subsistence farming and enhance security cattle-herding in rural  Isolated incidents areas along the border  Artisanal gold mining throughout the country 8 8

4.2 A posit sitive, ve, pro-busi business ness regulat gulatory ory envir vironm nment ent Regional/International Political and Institutional Favorable Investment Political and Trade Framework Promotion Policies Agreements   Investment Promotion Act of  African Union Tax incentives include:  Capital allowances: 20%- 2009 provides investor  Common Market for East 100% protections in 7 key areas, and Southern Africa  Deductible annual including: (COMESA; in process)  Guarantees against allowances: 20%-40%  Other depreciation expropriation  European Union (EU)  Protection for intellectual allowances: 8%-20% property rights  American Growth and  Duty exemptions and  Mechanisms for dispute Opportunity Act (AGOA) concessions for imports of resolution machinery, equipment, and  East African Community  Republic of South Sudan has agricultural products aiming (EAC; in process) to boost food and cash crop a priority to develop Public- production Private Partnerships to  Overseas Private facilitate investment in key  Favorable land tenure Investment Corporation sectors policies (OPIC; in process) 9

4.3 Ease se of doing ing busine siness ss Established the South Sudan Investment Authority to create centralized support and service center for investors considering investing or re- investing in South Sudan. Services include:  Planning, Research and Information Systems  Proactive Investment Promotion  Investor Aftercare  Other Investor Services One-stop Shop Investment Center was established in 2011 and will One-Stop Shop provide an informative and easy first step for investors, issuing: Investment  Necessary paperwork including investment certificates, licenses, Operationalized and permits October 2013  Customer care services to facilitate meetings and arrangements with business and regulatory agencies 10

4.4 Fa Favo vorabl rable pote tenti ntial l local cal and Interna ternati tional nal marke kets Common African EU Market for East African Growth & “Everything Eastern and Community Opportunities But Arms” Southern Act Africa • Free trade area • Free Trade access • Under AGOA • Duty Free & Quota between 19 for members for the South Sudan will Free Access tor member states community be permitted to products into the extending from export eligible EU for the 49 LDCs • Common tariffs on Libya to Swaziland products to the US imports from third duty free countries 11

5. INVESTM TMENT NT POTENTI ENTIALS LS OF SOUTH TH SUDAN N Agric icult ultur ure Petroleum oleum  Staple crops  Fisheries  Oil production  Oil services (audit, laboratories,  Export/cash crops  Forestry  Oil exploration environmental  Livestock & Dairy  Inputs  Oil refineries & assessment, data pipelines  Poultry & Eggs  Gum acacia management, etc.) Mining ning Infrastructur ucture  Mining opportunities surveys  Production of  Develop hydro- in gold, copper, industrial materials electric power Broader mining  lead, zinc, uranium, projects along the services (testing  Construct 4,000 km marble, aluminum, Nile River labs, data in new roads iron, and diamonds management, etc.)  Construction of new  Build and upgrade  Detailed capital at Ramciel regional airports geographical and Juba 12 mapping and International Airport 12

5.1 ENERGY Y 5.1.1 Fossil ssil energy gy Oil contitutes 98% of our revenu. Oil reserves are estimates at 3.71 billions making the country to rank 3rd of oil producing countries in Subsahara Africa behind Nigeria and Angola. Only a small pourcentage of these reserves are exploited. NB: Proven reserves of naturel gas in RSS is estimated at 1.1 trillions cubic meter. 13

OF THE BLOCKS IN SOUTH SUDAN, JUST 5 ARE CURRENTLY PRODUCING AND EXPORTING  Block 5b (under exp Sudapet Petronas) Seeking Produc ducing additional partners  Block A (Sudapet Saffir) is seeking additional partners  Block B lin to Total Border er Consortium and Kupec Border er Not ot Yet et Prod oduci ucing ng 14 Source: European Coalition on Oil in Sudan 14

5.2. 2. PIPE PELIN LINES 15

Exi xisti sting ng pip ipeli eline nes Existing pipelines and refineries  Major Pipelines: • 1,000-mile pipeline from Heglig and Unity fields to the Suakin oil Refinery terminal • 870-mile pipeline linking Melut Basin to oil export terminal near Port Sudan Refinery • 110-mile pipeline linking the Thar Jath and Mala fields to Port Refinery Sudan  Major Refineries: • Khartoum: 100,000 barrel per day • Port Sudan: 21,700 barrel per day • El-Obeid: 10,000 barrel per day 16 Source: International Energy Agency (IEA), US Energy Information Administration

Pl Planne nned d pipe ipeline nes s Potential pipeline routes Current status  Toyota Tshusho recently submitted a proposal to design and construct a 3600km oil pipeline from South Sudan to the new port planned for Lamu on Kenya's Indian Ocean coast  Chinese officials and companies have also expressed interest in building the proposed pipeline  Alternative proposals include: • A 3000km pipeline through Ethiopia to Djibouti • A shorter 800km pipeline to Uganda, connecting to the proposed pipeline expected to carry Ugandan crude to Mombasa The Government of South Sudan is open to all proposals 17 Sources: Ministry of Petroleum and Mining, media reports

5.2.1 .1 NON FOSSIL IL ENERGY Fossil energy is finite and can be a threat to the environment and the climate if not handled carefuly, as the country posses huge reserves of water, enjoys long periods of sunshine and perennial winds, investment in renewable energy should now aim at developping in these sectors. 18

5.2.2 .2 HYD YDROPOWE WER Feasibilities studies are already available to construct four dams at accessible sites on the white Nile between the Ugandan borders and Juba plus additional 16 small ones accross the country . 19

Dams to be be contru tructed ed Proposed Bahr El Jebel Dams 1 2 3 4 Juba Dam: Fula Shukoli Lakki Bedden Potential 855 MW 1100MW 609 MW 522 MW Bedden installed capacity Dam height (max above 60M 75M 45M 42M river bed) Dam length 760M 500M 385M 2775M Lakki Lakki 9 X 11 X 7 X 6 X Shukoli . Turbines Shukoli 95MW 100MW 87MW 87MW Fula Fula Lead Time 5 years 5 years 5 years 5 years Uganda Border Source: SMEC “Pre - Feasibility Study Report” Oct 2009 – Parameters for recommended options 20

5.2.3 2.3 SOLAR 12 hours of sun / day in most seasons. Solar radidation estmated at 5-6 kmh / m2 / day. 21