US Agencies Highlight South Sudan Business Risks
The Commerce, State and Labor departments issued an updated South Sudan business advisory this week to highlight the risks U.S. companies, investors and others in the country are facing, particularly involving state-owned companies, which may have ties to human rights abuses or corruption. The advisory, updated from guidance issued last year (see 2205230062), comes months after the country saw an increase in fighting between two Sudanese military forces (see 2305040037).
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The agencies say they “strongly” advise U.S. companies to “employ a risk-based approach to sanctions compliance” and “routinely” update their sanctions and export control compliance programs if they are doing business in the country. The advisory also noted that Commerce lists 15 South Sudanese companies on its Entity List, and said sanctions violators may be subject to civil and criminal penalties.
Commerce said South Sudan’s transitional government has “failed to implement key economic reforms and public financial management commitments” that were due to be completed by February 2023. “The transitional government’s lack of progress on these reforms, the absence of significant progress over the original transition period, and the transitional government’s continued failure to adhere to its own laws in the transparent management of its oil revenue could adversely impact U.S. businesses, individuals, other persons and their operations in South Sudan and the region,” the agency said.