South Sudan woos foreign investors
South Sudanese during the celebrations of the independence from the Sudan on July 09 in Juba. South Sudan plansa major campaign to boost investment. AFP
By Mugambi Mutegi (email the author)
Posted Friday, September 16 2011 at 00:00
South Sudan is organising a series of international trade shows as it seeks to open up the country for foreign investors.
The country plans to hold trade fairs in Brazil, India and China by the end of the year. However, the first fair is scheduled for early next month at the Nyakuron Cultural Centre in Juba. The country’s Ministry of Commerce and Industry is in charge of the promotion.
Delegates from East Africa would be required to pay Sh235,000 ($2,500) for a package that includes visa and airport tax, return flight, accommodation in Juba, transport to and from the conference venue and the participation fee.
South Sudan requires heavy investment in infrastructure such as road, housing, education, health and other social amenities to spur economic growth.
Investment analysts have urged Kenyans to take part in these conferences since they will not only serve as networking forums but help them identify viable business opportunities and investment procedures in the country, which is a fast-emerging market.
“Given the underdevelopment present in the country the government is keen on acquiring capital to deliver the various services necessary for it to get on its feet,” Mr Eric Musau, an analysts with Standard Investment Bank said. “Foreign investment will be key in achieving this.”
With a population of about 12 million, the landlocked country relies on local industry to cater to its consumer goods demand, presenting a huge potential for foreign investors.
Several Kenyan companies such as Equity Bank, Kenya Airways and Kenya Commercial Bank have established their subsidiaries in South Sudan with many others expressing their interest to invest in different sectors of the economy.
The latest entrant is Family Bank, which has announced plans to finalise an acquisition deal by June next year as it catches up with other Kenyan banks, which have set up base in the country. “The buy-out will help us gain acceptance in the market and cut short the investment lead time,” said Peter Munyiri, the CEO of Family Bank. (Read: Family Bank plans buyout in S. Sudan)
Banks are rushing to open shop in South Sudan, which is fast morphing into a fertile ground for both local and international companies after its break from the North and subsequent declaration of independence on July 9.
Beer maker East African Breweries Limited (EABL) plans to build a 700,000-hectolitre plant in Juba next year, as a response to its competitor – Heineken, which has bought two Ethiopian breweries — as the two firms seek to frog leap one another in the race for marketshare in the country. (Read: EABL hit by Diageo’s bid for Ethiopian brewer)
EABL has already acquired land in Juba for this venture.
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